FRAUDULENT ACT IN THE BANKING INDUSTRY CAUSES EFFECTS AND POSSIBLE REMEDIES. A RESEARCH PROJECT MATERIAL ON BANKING AND FINANCE
There were so many difficulties which this research work was confronted with bank officials were so reluctant to give out helpful information of this problem and there was also the cost of research and limited time for acquisition analysis and prop or interpretation of data effort was mode bys the researcher to personally visit places where the above secondary data were located. In the absence for the need for primary data question pairs administration was deeined unqualified there fore every material used in the research writing were completely work done by other people personal effort was only employed in tracing out relevant information needed for the project.
After due analysis of the available secondary data the researcher discovered the statistical data of member of staff involved in frauds and forgeries, retunes of commercial and merchant bank in frauds and forgeries and so on.
Experience has shown that even in the most regulated home accident can still happen. Bank staff should be properly screened before being employed and adequate bank education should be organized for the banks questioners.
1.1 BACKGROUND OF STUDY
Fraudulent act in the banking industry” is of a special concern to the monetary control and supervisory authority who are charged with the safety of individual banks and the soundness of the banking industry.
Fraudulent act” is common in Nigeria banking industry, but clients as well as employees, temporary staff engage in fraud and forgeries in banks.
Frequent occurrence of fraud ultimately distracts the attention of the management and lead to increase in running cost.
Time and energy that would have been spent improving customer service would be expended on preventing fraud. Increasing cases of fraud and forgeries in our banks lately if not shoped would pose certain threats to the stability and survival of individual banks and the performance of the industry as a whole. Reported cases of fraud in merchant banks dropped significantly from 16 in 1997 to 9 during the year 1998 similarly, there was a reduction in the total amount involved, from 187-59 million in 1997 to N67.35 million in 1998.
Fraud in whatever loss is limitless in classification. In banking industry, there could be presentation of forged cheques granting of unauthorized loans unauthorized over draft, position of fictitious credits, suppression of cheques, fraudulent transfer and withdrawal and so on Dr John Orjih in his text, defined fraud as the deliberate effort aimed at obtaining unlawful advantage at the detriment of another person who is the rightful owner of the fund.