OVERVIEW AND IMPACT OF FRAUD IN THE BANKING INDUSTRY IN NIGERIA (A CASE STUDY OF FIRST BANK OF NIGERIA PLC)

ABSTRACT Fraud is an awful phenomenon, which like a vein has invaded Nigeria banking industries and the society in general, and puts any organization that it comes into in a state of liquidation. This study highlights the bank fraud, extent of fraud in banks, effects of bank fraud, detection, and presentation and control measures adopted by management to check fraud incidents. This study highlights the nature and various types of fraud, causes of bank fraud, extent of fraud in banks, effects of bank fraud, detection, and presentation and control measures adopted by management to check fraud incidents. The purpose of this research work is to find out whether there is significance level of fraud in Nigerian banks, to know whether Nigerians practice, aid or abate fraud and to consider the adequacy of the internal control system in detecting and preventing fraud in the bank. Hypothesis were formulated and tested with chi-square and inference drawn there from. The collection includes a well-structured and easy to follow questionnaire. Primary data were collected through this medium from 30 respondents. The findings revealed that compensation of banking services and the maintenance of effective internal control mechanism has helped to reduce the incidence of fraudulent activities in the bank. In view of this, it is the recommendation that adequate internal control system should be maintained, effective fraud management, strict adherence of administrative management policies should be ensured to check and possibly eliminate fraud incidence in the bank. The detection and prevention of frauds should be elaborative effect between banks, their customers, the public and the government. Frauds in the banking system should as much as possible, be minimized as it kills the bank and destroys the economy of a nation. Finally, the research adduced that continuous vigilance should be the watch work if fraudulent practices are to be reduced and possibly eliminated in banking industry.
TABLE OF CONTENT COVER PAGEI TITLE PAGEII APPROVAL PAGEIII DEDICATIONIV ACKNOWLEDGEMENTV PREFACEVI ABSTRACTVII TABLE OF CONTENTIX
CHAPTER ONE 1.0BACKGROUND OF STUDY1 1.1OBJECTIVES OF THE STUDY3 1.2STATEMENT OF THE RESEARCH PROBLEM4 1.3SIGNIFICANCE OF THE STUDY7 1.4SCOPE OF THE STUDY8 1.5LIMITATION OF SCOPE9 1.6STATEMENT OF RESEARCH HYPOTHESIS9 1.7DEFINITION OF TERMS9
CHAPTER TWO 2.0REVIEW OF RELATED LITERATURE13 2.1CONCEPT OF FRAUD14 2.2SOURCES OF FRAUD17 2.3CAUSES OF FRAUD19 2.4TYPES OF FRAUD26 2.5IMPACTS OF FRAUDS IN NIGERIA – BANKING INDUSTRY35 2.6EXTENT OF BANK FRAUDS40 2.7THE LAW AND FRAUDULENT PRACTICES46 2.8DETECTION, PREVENTION AND CONTROL - OF FRAUD IN BANKING INDUSTRY49 2.9THE RELATIONSHIP BETWEEN BANKERS AND CUSTOMERS57
CHAPTER THREE 3.0SUMMARY, CONCLUSION AND RECOMMENDATION 3.1SUMMARY OF FINDINGS59 3.2CONCLUSION63 3.3RECOMMENDATIONS.64