DETECTION AND PREVENTION OF FINANCIAL FRAUD IN NIGERIAN BANKS

ABSTRACT

Fraud is an inherent vice. It has been on from time

immemorial even before the invention of money. However, in our yet

developing world with the quest to become rich quick on the increase,

fraud is becoming rather rampant.
Banks deal essentially in cash and

other financial instruments and because of that it has been exposed to

greater risk of fraud. The attention of many have been drawn to the

banks either directly or indirectly. Most people/workers look up to the

banks to rise up to their problems. With such motives some workers go to

the banks disappointed. Not getting so much as thought, most of them

decide to make away with what they can at the slightest opportunity.

   

Nigeria’s depressed economy also comes to mind. Fraudulent persons

often connive with bank officials to dupe the banks. Telex fraud is also

a new dimension.
In writing this project I am very conscious of the

much work that has been done in this very project. I am going into this

research bearing the following objectives in mind, determining actually

whether financial fraud exist in Nigerian banks, verifying the effects

of financial fraud in banks, finding out how computer aid in the

commission, detection and prevention of financial fraud, reviewing the

work that has already been done in area of financial fraud.
The

project will be based on both primary and secondary data interview

questions were used to ascertain the true instruments of the analysis.

Under secondary data magazines, news papers and published books were

used. Responses to the questionnaires were analyzed in percentages, this

will enable the researcher to assign and give percentage weight to each

alternative in order to make a good comparative analysis and to choose

the alternative with the highest percentage.







TABLE OF CONTENTS
Title page                                        ii
Approval page                                     iii
Dedication                                         iv
Acknowledgement                                v
Table of Contents                                vi
Abstracts                                        ix
Proposal                                        xi

CHAPTER ONE
Introduction
1.1    Background of study                             1
1.2    Statement of the Problem                         3
1.3    Significance of the study                          4
1.4    Objectives of the study                         5
1.5    Formulation of hypothesis                         6
1.6    Scope of the study                            8
CHAPTER TWO
Review of Related Literature
2.1    Introduction                                 10
2.2    Definition of fraud                             11
2.3    Fraud and fraudulent practices and banking services      13
2.4    Nature and types of frauds                         15
2.5    Causes of Bank Fraud                             22
2.6    Effects of fraud in banks                         34
2.7    Loopholes in the banking system                     35
2.8    Who are fraudsters in banks?                     40
2.9    The fate of depositors in case of bank financial         43
2.10    Effects of computer on detention and prevention of financial fraud in Nigeria banks                             45
2.11    Measures for controlling fraud in banks                 47



CHAPTER THREE
Research Design and Methodology                    
3.1    Sources of Data                                52
3.2    Location of Data                                53
3.3    Method of Investigation                         54
3.4    Interview Questions                             54
3.5    Sample used                                 57
3.6    Method of data analysis                         59
CHAPTER FOUR
Data presentation and analysis
4.1    Data Presentation                             60
4.2    Respondents to Questionnaire                    60
4.3    Test of hypothesis                            66
CHAPTER FIVE
The research findings
5.1    Summary of findings                            73
5.2    Conclusion                                 75
5.3    Recommendations                             76
Bibliography
Appendix