Detection and Prevention of Financial Fraud in Nigeria Banks

Detection and Prevention of Financial Fraud in Nigeria Banks

Project / Seminar Material
Reference ID: PS-12258-TM

DEDICATION

This research material titled “Detection and Prevention of Financial Fraud in Nigeria Banks” is dedicated to God for his enabling grace, and to all computer enthusiasts who contributed to make life a pleasant experience during my research documentation.

ACKNOWLEDGEMENT

I extend my sincere gratitude to all those who contributed to the completion of this project. Special thanks to my Supervisor (Name of your Supervisor), the Head of Department (Name of your HOD), the Lecturers in the department of Banking and Finance (BF), Book Authors and Profound Scholars of existing or related project material on “Detection and Prevention of Financial Fraud in Nigeria Banks” for their invaluable guidance, support, and expertise throughout the journey.

I am also grateful to your study area (mention any funding organizations, if applicable) for their financial assistance. This research would not have been possible without the encouragement and assistance of some stakeholders (mention any mentors, teachers, or colleagues). Additionally, I would like to acknowledge the understanding and patience of my family and friends during this endeavor. Your unwavering support has been a constant source of motivation. Thank you all for being part of this meaningful endeavor.

TABLE OF CONTENTS

PRELIMINARY PAGES

CHAPTER ONE

INTRODUCTION

    CHAPTER TWO

    LITERATURE REVIEW

    • 2.1 Introduction
    • 2.2 Conceptual Review
    • 2.3 Theoretical Framework
    • ⋮
    • 2.4 Empirical Studies

    CHAPTER THREE

    RESEARCH METHODOLOGY

    • 3.1 Introduction
    • 3.2 Research Design
    • 3.3 Population of Study
    • 3.4 Sampling and Sampling Technique
    • 3.5 Validation of Research Instrument
    • 3.6 Method of Data Collection
    • 3.7 Method of Data Analysis
    • 3.8 Questionnaire Administration
    • 3.9 Ethical Consideration
    • 3.10 Statistical Analysis

    CHAPTER FOUR

    DATA ANALYSIS, RESULT AND DISCUSSION

    • 4.1 Introduction
    • 4.2 Presentation and Analysis of Data
    • 4.3 Re-statement of Research Questions
    • 4.4 Test of Hypotheses
    • 4.5 Discussion of Findings

    CHAPTER FIVE

    SUMMARY, CONCLUSION AND RECOMMENDATION

    • 5.1 Introduction
    • 5.2 Summary of Findings
    • 5.3 Conclusion
    • 5.4 Recommendation
    • 5.5 Suggestion for Further Study

    REFERENCES

    APPENDIX A - “QUESTIONNAIRE”

    ABSTRACT

    Banks deal essentially in cash financial instruments and other documents which are generally of a negotiable and easily transferable in nature. Hence it is very pertinent to say that the exposure of the banks to both internal and external fraud is very great. This practices is very common to areas involving cash, cheques and fund transfer operations.

    Much research and thought are increasingly being directed towards the study of the causes of fraud in banks because of its effect on banking and the entire economy.

    Recent study carried out by financial Institute training centre, Lagos showed that cause of fraud reported annually between 1989 and 1998 was about 500 and the annual average money involved in attempted fraud was thirty − six million naira while the annual average amount lost to banks and customers was sixteen million naira. It may not be said to be said to be an over statement that these figures may have risen geometrically upward afterwards when about seventy eight percent of our banking operation are going to the rural areas where poor Institutional and infrastructural factors militate against efficient and effective checks on the branches in these rural areas.

    Another problem facing our nations banking system is that of long queues. Frustration, delays and disappointment being experienced in the banking halls by customer whole either paying in or withdrawing their hard earned money.

    Detection and Prevention of Financial Fraud in Nigeria Banks

    CHAPTER ONE

    Introduction

    1.1 Background Of Study

    There has been no single accepted definition to the term “fraud”. Fraud in whatever forms is limitless on classification.

    This is why courts and writers on fraud shirk or try to escape away from giving a decisive definition.

    Notwithstanding, the varied meaning attached to the concept of financial fraud, the author addressed the subject with the following working definitions.

    Oxford and chamber dictionaries define fraud as a criminal deception, act of deceptive trick, cheating, swindling person or thing that decodes.

    Longman dictionary define fraud as “an act of deceitful behaviour for the purpose of gain which may be punishable by law”.

    In the mind of civil court of justice, fraud may be said to cover all acts, omission and concealments which involve a breach of legal or equitable duty, trust or confidence, justly reposed and injurious to another or by which an under influence or advantage is taken off.

    Bunmi Fagbenmi define banking fraud to mean an act or cause of deception deliberately practiced to gain unlawful or unfair advantage, such deception directed to the detriment of another. He goes further to define fraud to mean depriving a person dishonestly of something which his own.

    Having closely studied these approaches to definition of fraud especially from the banking perspective one may correctly see bank financial fraud as a deliberate act by an individual or group within or without the Nigeria banking system to cheat swindle, deceives or manipulates in order to disposes of their funds.

    Therefore fraud and forgeries in banking transaction can be perpetrated through falsification of entries in account of customers with a view to take advantage of the excess processed.

    Despite several definitions of frauds, the author believes that the ones so far given are rather appropriate, adequate, and inspiring for the purpose in which the research work intends to achieve. This is because. They contain the basic elements of fraud which include that:-

    1. There must be deceit or deception directed to the detriment of another or entity.
    2. A false representation has been made knowingly or without belief in its truth or recklessly, carelessly, whether it be true or false.
    3. To obtain damages for deceit, it must be proved that the defendant intended that the plaintiff should act on it an suffered damages in consequence.

    The position of banking system in our economy cannot be over emphasized. They act as the “conduct pipe: through which all the financial transactions pass. However, fraud has proved a serious bottleneck to the proper functioning of the roles of the banking system to the Nigeria economy. People are beginning to get worried and sooner then later may loose confidence in our banking sector due to mainly the very increasing incidence of fraud in our today’s banks.

    …

    CHAPTER TWO

    2.0 Literature Review

    2.1 Introduction

    This chapter focuses on the review of related literature. A literature review includes the current knowledge as well as theoretical and methodological contributions to a particular topic. It documents the state of the art with respect to the topic you are writing. It surveys the literature in the topic selected. In this research work the literature review includes the …

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