CHAPTER ONE
INTRODUCTION
The computer machine and computer technologies are both human oriented. Though, the computer is brilliant and intelligent, it cannot compete with human. This is to say that the computer technology excellence of intelligence is desirable from the human elements that interact with the system and technology to make it work. It is whatever this human elements commends the computer to do that is does. Computer is absolutely harmless except it is imbued with the tendency to harm. Computer is basically defined as an electronic machine which accepts data form an input devices, perform arithmetic and logic operations in accordance with defined data and finally transfer the processed data to an output device through the central processing unit (CPU) either for further processing or to be produced as a final result. Computer technology has come to be accepted as an indispensable in novation if fraud detection and prevention in the banking industry. Fraud has for a long time now remained the cancer-warm that is biting hard on the back bone of banking industry. The effect of this phenomenon has led to the liquidation of many banks in Nigeria. It has been the major cause of the ugly development in our Banking industry now refereed to as ‘DISTRESS’ The development which records high occurrence of our banks has caused a big question mark on the credibility of Nigerian in both with and outside the country. The need to combat the double –headed monster by all means gave rise to the issue of cultiviatism of the banking industry especially in the areas susceptible to fraud.
BACKGROUND OF THE STUDY
Since 1986 when structural adjustment programme was introduced, the banking business changed. As the number of branches grow form sixty five in 1985 to one hundred and fifty five in 1994, the techniques of delivering bank services changes. In November 1990, societe general Bank launched their first Acitomated teller machine (ATM) with trade name SGBN’S Aim’s cash point 24. The followed by first bank of Nigeria Plc in December 1991 with their ATM called “First cash” located in six branches in Lagos. The House journal of first Bank of Nigeria (1991) affirmed that prior to AIM, other forms of electronic banking existed notable among which were computers. The computerization of Enugu (Main) branches in April, 1989 and also the recent introduction of local Area network (LAWS) or the 26th of October, 1999 and the Reengineering projects which will usher in the wide Area net work (WAN) before the next millenium. But how far has the computer networking of these banks improved the long stay of customer on the counter; could manual application of interest on savings accounts, commission, on turnover and overdraft account handled automatically by the system? Can management always extract up to data information or account position of the operation at a particular point in time. The state of the banks services t customers are such that customers are made to stay helplessly on the counter for hours, only to be attended to by neatly dressed impolite bank cashier. The security checks are simply cumbersome and bank staff wishing to stay on their employment vigorously follow these procedures.