MINIMIZATION OF BANK FRAUD IN NIGERIA : PROBLEMS AND PROSPECTS. A RESEARCH PROJECT MATERIAL ON BANKING AND FINANCE
ABSTRACT
In summary, the aim of conducting this research work is to investigate into the causes of the alaming rate of bank fraud in Nigeria, identify the effects, and suggest possible solutions towards achieving fraud free banking in Nigeria.
Accordingly the acts which constitute fraud are inexhaustible. But prominent among them is forgery. Generally, employees, all have the fraudulent practices. However, untrained staff and those bank staff who now occupy top positions through experienced have a lion share of defrauding banks, when verified with any known bank fraud.
The major cause of fraud is frustration. However, numerous financial commitments were the constraints inhibiting promotion and reward.
Most of the frauds that went undetected, were the architects of dishonest staff.
Frequency of fraud in banks is on the average the hardly would a fraud succeed without a bank staff.
Therefore, effective supervision is the bedrock for solution. Fraud may result in the loss of confidence by the public a decade, bankers resist at all times, and it has no correlation to a particular section of the banks.
However, a situation where gold watches are usually given, is inadequate for fraud vigilance.
CHAPTER ONE
INTRODUCTION
1.1 STATEMENT OF PROBLEM
The occurrence of fraud in many Nigerian organizations in becoming too predominant, especially in the banking industry. According to Anyanwu (1993), bank fraud entails a conscious or deliberate effort aimed at obtaining unlawful financial advantage at the detriment of another person who is the rightful owner of the fund.
However, Orjih (1998), stated that increasing incidence of frauds and forgeries in banks in recent years, if not arrested might pose certain threats to the stability and survival of individual banks and the performance of the industry as a whole.
So, what exactly are the causes of bank fraud? Could it be from the side of the bank staff or the customers? Or could it be from both parties? Who bears the incidence of fraud? And how can the occurrence of fraud be minimized and if possible be prevented?
Therefore, the researcher intends to investigate on the causes and incidence of bank fraud, as well as obtaining possible measures of minimizing or preventing the occurrence of bank fraud.
1.2 RATIONALE OF STUDY
Actually, fraud cannot easily be totally eradicated in Nigeria banks, but the rate of fraud can only be minimized. So, it is of this reason that the researcher has actually seen the situation which the country is facing as a result of this problem.
The researcher actually has seen this problem as one of the problems the society is facing and decided to seek for a way out of this problem. Now the question is why do we still experience fraud after all provision made to control fraud in our society. In our bank we have internal and external auditors, shifting of staff from one department to another penalties for fraudulers etc. Despite all these measures to minimized or control fraud we still experienced fraud. The question now is how do we control this ugly situation the society if facing. So, come out with the following rationales are:
To know what is actually bank fraud
To know also various forms and nature of bank fraud in Nigeria
To know element that facilitate bank fraud
To know effects of bank fraud in the economy.
Finally, to give situations on how control bank fraud in Nigeria.
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