ABSTRACT
Much thought and research are
increasingly being directed at the tudy of causes of fraud in banks, because of
it’s effects on banks and finance industry generally.
No reliable statistics exist (in any
public report so far) on the value of successful and frustrated fraud in the
banking industry.
The facts presented in this research
are the first of their kind on the study on how the rate of fraud on the
banking industry is to be contended the research delved into different issues
on sources of fraud, types of fraud, causes of fraud, effects of fraud on the
business of banking and the effectiveness of fraud preventive measures.
The detection and prevention of frauds
should be elaborative effect between banks, their customers and the government
frauds in the banking system should as much as possible be eliminated as it
kills the bank and destroys the economy of a nation.
TABLE
OF CONTENTS
TITLE PAGE II
APPROVAL
PAGE III
DEDICATION IV
ACKNOWLEDGEMENT V
ABSTRACT VII
TABLE OF
CONTENTS VIII
CHAPTER ONE
1.0 INTRODUCTION 1
1.1 BACKGROUND OF THE STUDY 1
1.2 STATEMENT OF THE RESEARCH PROBLEM2
1.3 OBJECTIVES OF THE STUDY 3
1.4 SIGNIFICANCE OF THE STUDY 4
1.5 LIMITATIONS OF THE STUDY 4
CHAPTER TWO
2.0 REVIEW OF RELATED LITERATURE 7
2.1 DEFINITION OF FRAUD 7
2.2 SOURCES OF FRAUD 8
2.3 TYPES OF FRAUD 10
2.4 CAUSES OF FRAUD 13
2.5 EFFECTS OF FRAUD ON BANKS 15
2.6 DETECTIVE, PREVENTIVE AND
CONTROLLING
MEASURES FOR FRAUD IN THE BANKING INDUSTRY 16
CHAPTER
THREE
3.0 RESEARCH MYTHOLOGY AND DESIGN 22
3.1 SOURCES OF DATA (SECONDARY ONLY) 22
3.2 LOCATION OF DATA 23
3.3 METHOD OF DATA COLLECTION 23
CHAPTER
FOUR
4.0 FINDINGS 25
CHAPTER
FIVE
5.0 RECOMMENDATION AND CONCLUSION 27
SUGGESTION
FOR FURTHER RESEARCH 29
BIBLIOGRAPHY 31
CHAPTER
ONE
1.0 INTRODUCTION
1.1 BACKGROUND OF THE STUDY:
Banks are institutions known to
operate on the center pin of public confidence.
Today that concept no longer holds as bankers themselves either initiate
fraud or partakes deeply on fraudulent activities against their banks
(employees).
According to Nigeria Deposit Insurance
Corporation (NDIC) Annual Reports (2001) most banks were run a ground by a few
greedy directors and officials who perpetuated frauds and all kinds of
unethical practices against their institutions.
This is an aberration that continues to erode public confidence in
banks.
This scenand has contributed to the
liquidation of many banks.
Since
it is observed that one cannot avoid considering the fact that the distress in
the banking industry was occasioned by fraud, the need therefore arises to find
out problems associated with fraud, it’s effect on the economy and how there
problems are to tackled.
1.2 STATEMENT OF RESEARCH PROBLEM
Though the banking industry is one of
the most profitable institutions within the economy, higher performance could
be attained in terms of their private returns and obligations to the society.
This
must be so if the banking industry is to perform a leading role on reactivating
the economy.
The suboptimal performance of the
Banking Industry is due to problems. Of
these problems, the issue of fraud in the banking industry is one of the most
intractable and involvemental. The
magnitude of this problem and it’s implications for the industry has inspired
this research on “contending the rate of fraud in the Banking Industryâ€.
OBJECTIVES OF THE STUDY
The primary objective of this research
is to find practical means of minimizing the possible eliminating the incidence
of fraud in our banks.
To achieve this objective the
following secondary objectives have been specified.
i.
To
identify the cause (s) of fraud in banks
ii.
To
identify the types of fraud perpetrated in banks
iii.
To
determine the effects of fraud on the business of banking
iv.
To
recommended measures for reducing the incidence of fraud in the banking
industry.
v.
To
identify the means through which the recommended measures can effectively be
implemented
vi.
To
know why bank personnel commit fraud .
1.4
SIGNIFICANCE OF THE STUDY
Since fraud has given rise to failure
in banking business, it is necessary that government, monetary authorities,
economic policy makers and management should help in contending the rate of
fraud on the banking industry.
LIMITATION OF THE STUDY
This project work would have been a
great one considering the short time given for the completion and submission of
the project.
Financial constraint is another
limitation faced by the researcher due to inadequate fund, the researcher was
unable to travel to places to gather more information.
UNAVAILABILITY
OF RESEARCH MATERIAL.
Research made proved that some
textbooks states points without elaborating the points while some textbooks
relating to topic are no where to be found.
Besides, the researcher was able to
overcome all these and the result of this effort is the completed work.
REFERENCES
Agbato F,
(1998) Distress in banks
Benin
Osagie Pub. P.8.
NDIC Annual
Report (2001): Various issues
Nigeria
Deposit Insurance Landmark Pub.
Lagos
Corporation
Annual report.
Ugwuoke
G.N. (2003): “Computer Fraud in
Our Banksâ€
Udoka Pub.
P. 15 Ikeja.
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