OVERVIEW AND IMPACT OF FRAUDS IN

THE BANKING INDUSTRY IN NIGEIRA (A CASE STUDY OF FIRST BANK OF NIGERIA PLC)

ABSTRACT

            Fraud is an awful phenomenon, which like a view has invaded Nigeria banking industries and the society in general, and puts any organisation that is comes into in a distress point of in a state of liquidation.

            This study highlights the nature and various types of fraud, causes of bank fraud extent of fraud in banks, effect of bank fraud, detection and control measure 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 Nigeria banks to know whether Nigeria practice, aid or abate fraud and to consider the adequacy of the internal control system in detecting and preventing fraud in the bank.

            The method of data collection includes journal, textbooks and past work.  The findings revealed that compensation of banking services and the maintenance have 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 elaborate effect between banks, their customers, the public and the government.  Fraud in the banking system should as much a possible be minimized as it kills the bank and destroys the economy of a nation.

            Finally the research work adduced that continuous vigilance should be the watch work if fraudulent practices are to be reduced and possibly eliminated in the banking industry.

TABLE OF CONTENT

COVER PAGE

TITLE PAGE

APPROVAL PAGE

DEDICATION

ACKNOWLEDGEMENT

PREFACE

ABSTRACT

TABLE OF CONTENT

CHAPTER ONE

1.0       Introduction

1.1             Background of study

1.2             Objective of the study

1.3             Statement of research problem

1.4             Significance of the study

1.5             Limitation of scope

CHAPTER TWO

2.0       Review of related literature

2.1             Concept of fraud

2.2             Sources of fraud

2.3             Causes of fraud

2.4             Type of fraud

2.5             Impact of fraud in Nigeria banking industry

2.6             The law and fraudulent practice

CHAPTER THREE

3.0             Research methodology

3.1       Research design

3.2             Source of information

3.3             Method of data collection

CHAPTER FOUR

4.1             Findings

CHAPTER FIVE

5.0       Summary, conclusion and recommendation

5.1             Conclusion

5.2             Recommendation

5.3             Bibliography

CHAPTER ONE

1.0       INTRODUCTION

1.1       BACKGROUND OF STUDY

            With an award match to becoming on industrialized nation, Nigeria is witnessing true emergence of human resources as professional, which made possible the establishment of service industries and other business organizations.  This belief was rather too strong that the urge to provide financial services can no longer be overlooked.  To accelerate economic growth and economic development both government and some organized private groups were issued license to operate banks, in addition to a few banks that were already into business to operate systematic financial services.

            This bank employed young men on women, but like every aspect of human endeavour have their challenges.  One of the major challenges facing the banking is the incidence of fraud.  Bakere (2002.1) observed that the incidence of frauds in the banking industry has in the recent, past posed a very serious threat to the very existence of financial institutions and is a matter of services concerned to the regulatory authorities and the banking public.  Despite the stringent measures put