PREFACE
The Nigeria economy
is presently in a great distress and dilemma; the economy was plunged into this
agonizing gang mainly due to fraud.
Suddenly, the high level fraud,
which shakes the very foundation of the economy, brings about its prevention
controls.
The major concern of this study is
to stimulate by the alarming rate of fraud incidence and increase in distressed
banks, which result to lose of confidence in the security of investment in the
banking industry.
ABSTRACT
The
establishment of banks in Nigeria
is not legislatively or directly compelled but should be seen as a key in the
world economy.
The study is aimed at identifying
fraud prevention and control in Nigeria
banks, highlighting the problem of its risk in our economy.
The study to focused attention on
the prevention and control of fraud in the banking industry is to bring about
rationale economy decision and growth.
The study further received the
objectives and prevention and control of fraud, in Nigeria banks and also exposes the
problem and recommendation.
CHAPTER ONE
INTRODUCTION
1.1 BACKGROUND OF THE STUDY
Banking
in Nigeria
has gone through very dramatic changes within this decade. Banking is a key in the world economy. Banking business has flourished with amicable
level of success. The problem now lies
in a high level fraud, which shakes the very foundation of the economy. The exposure to the risk of fraud has tripled
in the last two decades. Which is
traceable to various types of fraudulent activities, fraud prevention and
control in the industry is not only a internal affairs of the bank(s) it is a
whole under spectrum of specieta and co-operate responsibility. Adequate and efficient systems of internal
control in and of themselves are not sufficient measures to dictate and curb
fraud activities in Nigeria
banks.
Fraud is a social lice, which is not
unique to the banking industry or peculiar to Nigeria. Fraud in banks must be looked at generally as
act that involves the loss of assets by bank(s) through deceitful and dishonest
means. The intention of the fraudster is
to dishonestly benefit himself to the eletriment of bank or bank staff or bank
customer or any other member of the public via banking operations. It can be committed by bank customer’s bank
staff or a combination of staff and or third parties, which is non-customers.
1.2 STATEMENT OF THE PROBLEM
It has
always been desire of general public to create a fraud free operational
environmental in banking industry to secure the most needed confidence of the
customers on the safety of their resources in the reliable custody of the
financial institution hat manage them.
To achieve this the need to bring to high, the policies of government,
the effort of the society, the contributions of the apse banker as well as the
none government organization and finally the management of the various banking
industries and the customers themselves arises.
Therefore, the following questions
have to be answered.
(i) Are
government formulating policies aimed at curbing these mutinous activities of
some people called fraud?
(ii) How ready is
the society the masses policies religious societies to welcome any effort aimed
at reducing/preventing fraud in the banking system.
(iii) In the apex bank
making sure that all the policies meant to prevent fraud are being complied
with by banks.
(iv) How patients
is the customers to enable the management to operate under a strict adherence
to the company policy on the bid to satisfying his interest.
(v) Are the
management of the bank well equipped with effective internal control system to
square up with high technological advancement?
Undershich the fraudsters operate.
1.3 PURPOSE /
OBJECTIVE OF THE STUDY
They
are essential reasons for carrying out the study of fraud, the reason are as
follows:
(i)
to assess the strength of policies adopted by various
interest groups prevent fraud in the banking industries.
(ii)
To determine whether high level technology adopted by
perpetrators who has defined these policies.
(iii)
To know the degree of compliance by various bank and
other interest group towards the implementation of these policies.
(iv)
To ascertain other alternative preventive measures
which is to open to management to reduce/prevent fraud in banking industry.
(v)
To make suggestion towards selling the problem that
occurs in the bank.
(vi)
To co-operate among themselves especially in areas of
status reports on customers and staff reference.
(vii)
To exhibit a sense of probity moderation and
accountability.
(viii)
For the provision of information system and data bank
against potential fraud and collecting information on the latest method of used
by fraud stars.
1.4 SIGNIFICANCE OF THE STUDY
The
importance of the study lies on its usefulness, infact, the study will be of
immense interest not only to other existing banks, but also get to established
banks, it will also prove valuable to both cooperate and individual customers
of the banks. It will be noted worthy to
say that if the impact of good control system is established the lost glory of the
banks as the most reliable custodian of financial resources will undoubtedly by
gained.
The task and confidence of customers
on the bank will be renewed, thereby bringing about rational economic decision
and business growth, therefore the study will seek to explore the role of
various interest group (the government the security agents none government
organisation as well as customers of the financial institution). In providing measuring for prevention of
fraud in the banking system, the study will also help in limitation of fraud
activities in the Nigerian bank. It is
also to make sure that all the policies meant to prevent fraud are being
complied with the banks.
1.5 LIMITATION OF THE STUDY
The
various constraints were experience in the process of this study the ranges
from time, money convinced etc.
Further
more the topic was so vast that it proved so difficult to cover in view of the
spread of the respondent, the size of the industry etc., it is something that
review time, finance and perhaps team work, all the topic is extensively
conversed. Another matter constraint was
the difficulty encountered while trying to collect information deemed and
classified as secret and strictly meant for staff only. Respondent on their own part were so relevant
in complying their questionnaire some of them avoided some question by leaving
the spaces bank.
Above
all finding was the main problem that attempted to frustrate the research
effort.
As an
established fact, a very expensive project can be unsuccessful because of the
exorbitant cost association to it. The
cost inverse in photocopying duplicating the questionnaire and typing and
binding of project was very exorbitant and discouraging.
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