MINIMIZATION OF BANK FRAUD IN NIGERIA COMMERCIAL BANKS

ABSTRACT In this project, the minimization of bank fraud was studies. Infant, I try to ascertain the extent in checking bank fraud in commercial banks in Nigeria, the external banks encourage fraud in commercial banks, how adequate are the fraud control  technique used by commercial banks and the  last to ascertain the influence of banking education on fraud control in commercial bank in Nigeria           In the key point I tired to find the types of bank fraud, causes, problems and at last measures to minimize fraud in banks           In addition I found out the following; how fraud fluencies on the activities of commercial banks in Nigeria, whether or not banks staff encourage fraud in commercial banks.           The study was punctuated with far reading suggestion. It is hoped that if these measures are applied with sincerely, they will provider availed, sound basis for a more purposeful approach to the commercial banks in minimizing fraud     ACKNOWLEDGEMENT First of all I wish to acknowledge my appreciation and thanks to my Almighty God who despite my shortcoming sustained me with his wonderful care and guidance Secondly to all those who in one-way or other assisted in the preparation of this project. To name all is  not easy but sincere thanks go to my project adviser, Mr. Ikecheonwu and I am also particularly indebted to my loving Mother and my Late Father who left since when I was 13 years may his soul rest in peace   To my cousin Mr. Ugwu. Samuel and his brother’s for their financial support in my project To my very close roommate room31 hostel A and n=my friends I thank you  all for your co-operation and help. To my Head Of Department Dr. John Orjih who I called the best man. May God bless him and for his fatherly care toward us.     UGWANYI EDNA NDID AUGUST 2005 DEDICATION My project work is DEDICATION to the uncommon love of our lord and savior JESUS CHRIST And to my family AMEN.                                 TABLE OF CONTENTS TITLE PAGE APPROVAL PAGE ABSTRACT ACKNOWLEDGEMENT DEDICATION TABLE OF CONTENTS CHAPTER ONE 1.1            INTRODUCTION 1.2            STATEMENT OF PROBLEM 1.3            OBJECTIVE OF THE STUDY 1.4            IMPORTANCE OF THE STUDY 1.5            LAMINATIONS OF THE STUDY 1.6            DEFINITION OF TERMS USED CHAPTER TWO 2.1            REVIEW OF RELATED LITERATURE 2.2            TYPES OF BANK FRAUD 2.3            CAUSE OF BANK FRAUD 2.4            PROBLEMS OF BANK FRAUD 2.5            MEASURE TO CHECK FRAUD CHAPTER THREE RESEARCH DESIGN AND METHODOLOGY 3.1            SOURCE OF DATA (SECONDARY SOURCE 3.2            LOCATION OF DATA 3.3            METHOD OF DATA COLLECTION (LITERATURE WORK) CHAPTER FOUR 4.1            FINDING CHAPTER FIVE RECOMMENDATION AND CONCLUSION                       CHAPTER ONE   INTRODUCTION 1.1     BACKGROUND OF THE STUDY Since the inception and recognition of bank in Nigeria. it has been in a head way of existence and survival. This is because since the emergence of this area of economic and business knowledge, fraud and all forms of dishonesty and misappropriation of money entrusted to one had obviously to Nigeria banks. This defect has been lingering in the minds of honest bank employee and the student majoring into the banking profession too give potential thought as to the near future perfection of the banking and finance as a discipline fraudulent actives in the Nigerian banks have grown so great in strength, rigor and vigor that most of the banks are exposed to great risk of losses inspire of all modern sophistionted security advices employed in the dally operation and function by Nigeria banks. Banking industry is the bed rock of any developing and developed economy the world over. It is therefore very important to find out any problem that rises to  to disrupt those industries. Every transactions involved in international trade is done through the banks and this is what depicts the direction of any economy all over the world. Industrial development and establishment project financing etc are all done through banks therefore the eradication fraud in banks is the concern of every worthy patriot of this great nation, fraud is an international misrepresentation consentient for the purpose of inducing a mother in reliance upon it to pant with some valuable things, money properties belonging to him or generally to surrender a legal right. Although the existence of fraud in our banks is not our uncommon or unexpected phenomenon. It is worrying because “of all the various problems conformity the Nigeria banking industry today that of fraud is easily the most intractable. The banking industry worries more about fraud because of the rather obvious damaging consequences of the acts on the heaths and for the existence of the institution. According to the Oxford Advanced Learner Dictionary of current English the word “fraud” means criminal deception. This is a straightforward definition. The great master dictionary Hamlin Encyclopedia world dictionary defines “fraud” as:” deceit” tricky sharp practice or breach of confidence by which some one who sought to gain unfair or dishonest advantage any deception artifice and trick. Also, the term fraud can be defined in so many ways “fraud” in the contemplation  of a civil court of justice may be said to include all acts, omissions and concealments which involve a breach of legal or equitable dusty trust of confidence justify reposed and are injurious to another or by which an under or unconscientiously advantages is taken of another  Finally, Wale Adewuni describe fraud as a conscious premeditated action of a person or group of persons with the inteation of altering the truth and or fact for selfish personal monetary gain. It invoues the use of deceit and trick and sometimes highly intelligent cunning and know-how These can emerge as a result of non- strict adherence to documented and established rules and regulation in individual banks and such regulations in individual banks and this has gone a long way in enhancing fraud in our banks and is very bad thing so to say.   Also, these skilled professionals in the management level of these banks. Lack of inbuilt accountability devices including having regular auditing of accounts of customers these banks do not organize fraud seeming so as to discuses the problems fraud cause them and fine out these people who actually make fraud possible in their banks and the solutions to these problems lack of proper recruitment and training policy on the part of the banks     1.2  STATEMENT OF PROBLEM        The proposed objective of this project is to determine ways of minimizing frauds in Nigeria commercial bank because fraud has brought about banks failure in Nigerian banking industry. It is time we study fraud and how it can be reduced in Nigeria bank this act tends to make people loose confidence in financial institution in Nigeria. At this point it seems necessary to find solution to this problem that is reduced frauds in Nigeria banks, fraud is an enemy of baking business in Nigeria, fraud is obtainable more especially in banking sectors them any other place. It is the biggest single cause of bank failure therefore it is necessary to find solution to the problem so that we can evaluate the performance of bank in Nigeria when fraud is being reduced in Nigerian banking industry  1.3  PURPOSE/OBJECTIVE OF THE STUDY (1)                                     To identify the effect of bank fraud on the activities of commercial banks (2)                                     To identify the loopholes in accounting and audit function that create avenue for the perpetration of fraud in the banks and ascertain the relevance of the emphasis placed on vouchers and withdrawal from customer account (3)                                     To determine the extent of involvement of bank staff in encouraging fraud in commercial banks. (4)                                     To survey the nature and form of fraud in our banks 1.4     SIGNIFICANCE OF THE STUDY           This project is drawn for all those who may be interested in carrying out further study on frauds in the Nigeria banking institution. This study will go a long ways to certify the following: (i)      STAFF:      Whether there is the need to improve the condition of the worker and whether this well make them not to think of fraud and reject any attempt by outsiders to influence them into frauding their banks (ii)     CUSTOMERS:   Almost every bank fraud has either direct on an indirect effect on a customers are made to bear the bank when there is a bank fraud COMMERCIAL BANK AND MANAGEMENT: Running cost increases in fragment occurrence of fraud and, time energies that would be spent improving customer’s services would be expended on preventing fraud.       1.5            LIMITATION OF THE STUDY (a)              Some banker who were asked for help were hostile and bluntly refused to co-operate with the researcher in giving her the required information (b)             CONSTRAINTS OF TIME AND MONEY To carry out a researcher required guide big sum of money and the researchers a final year student of banking           Time again is another constrain to the researcher. Time given are to complete the project and this means that a lot of areas have to be left untouched.   1.6     DEFINITION OF TERMS USED FRAUD:                     This means criminal deception or any act of this kind, getting money by deceit is term fraud one who engages in a fraudulent activity is called a fraud stain BANK:                          Is a corporation or person or persons who accepts money on current accounts pays cheques on such accounts on demand and collects cheques for customers. MINIMIZATION:        reduction bringing down some thing down to its lowest level.  DECEIT:                      Means deceiving, also as it used in this research project it means causing somebody to accept as true something that is false. INTERNATIONAL TRADE:         trade between two different countries e.g. Nigeria vs. Britain Get the Complete Project Material Now!!!