Management of Fraud in Nigeria Commercial banks

Management of Fraud in Nigeria Commercial banks

Project / Seminar Material
Reference ID: PS-14847-TM

DEDICATION

This research material titled “Management of Fraud in Nigeria Commercial 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 “Management of Fraud in Nigeria Commercial 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

    This research is on the Management of Fraud in Nigeria Commercial banks. A case study of selected Commercial Banks in Enugu. The main objective of the study is to identify the causes of fraud in commercial banks. The researcher analyzed the data collected based on the response from the questionnaires distributed. The chi-square test was used to test the hypotheses. The major findings of the study are: 1. The causes of frauds in commercial bank include a. Poor management and poor security arrangement b. Inadequate staff training. c. Staff negligence. 2. The various types of fraud in commercial banks include a. Loan fraud b. Cheque fraud c. Advance fee fraud. On the basis of the above findings, the study concludes that management of fraud in commercial banks is of great importance and has a lot of benefits which includes giving confidence to the bank customers that their money is safe, encourages or attracting local and foreign investors to invest in the banking sector with the impression that their investment is secure. Also, it exposes fraud victims in commercial banks for punishment and prosecution. On the basis of the above findings it was recommended that a. Government should establish more anti-fraud and anticorruption agencies to assist in sanitizing the Nigeria banking system. b. Bank management should employ strategies that will ensure early and prompt detection, prevention and control of fraud in commercial banks.

    Management of Fraud in Nigeria Commercial banks

    CHAPTER ONE

    1.0 Introduction

    1.1 Background Of The Study

    The term irregularities are used to refer to intentional distortion of financial statements, for whatever purpose and to misappropriations of assets, whether or not accompanied by distortions of financial statements. Fraud is one type of irregularity. In auditing guideline, the word fraud is used to refer to irregularities involving the use of criminal deception to obtain an unjust or illegal advantage. Fraud may entail that proper accounting record have not been maintained, it may also indicate that some internal controls are not effective and that the auditor cannot rely on these internal controls. Existence of Fraud in financial statements could jeopardize the statements from showing true and fair view and complying with the companies and Allied Matter Acts (CAMA) 1990. Therefore, fraud in banks must be looked at generally as “acts that involve the loss of assets by banks through deceitful and dishonest means. The intention of the fraudster is to dishonestly benefit himself to detriment of the bank or bank staff or bank customer or any other member of the public via banking operations. Fraud can be committed by bank customer, bank customer, bank staff and customers or a third party that is non-customers. (Eze, 2004).

    1.2 Statement Of The Problem

    Fraud in the Nigerian Commercial Banks has remained an unavoidable problem and has also resisted all practicable treatment. The incidence has not only become incessant but also been on the increase in the recent past. Although, it has assumed global dimension, the rate of growth in Nigeria has been outstanding in sophistication from N1542.91 million in 1996, the amount involved in commercial banks alone rose to N3590.31 million in 1997. Where as the actual/expected loss went from N371.08 million to N224.54 million (NDIC). This has affected the commercial banks profitability in no small measure. The general confidence reposed in the banking institutions has become eroded since the new concepts of distress, bank failures and closures of 1990’s. From available records, out of about 115 financial institutions operating in the country as at 1996, surprisingly 52 were distressed while 6 were acquired. With the frequent of fraud, people are no longer at ease keeping their monies in the commercial banks but prefer to keep them in their houses or concretizes them in wares (an uncivilized practice for underdeveloped economy). The internal control measures in the commercial banks seem to have faults. Such that, it has aided the perpetration of fraud. As a result, the industry shares 90% of all cases of malpractices, forgeries and frauds. (Wiki pedia 2007).

    1.3 Objectives Of The Study

    The specific objectives of the study include the following. a. To identify the causes of fraud in commercial banks. b. To identify the types of fraud in commercial banks. c. To evaluate the extent of fraud in commercial banks. d. To evaluate how fraud is detected and controlled in Nigeria commercial banks.

    1.4 Research Questions

    The study poses the following research questions. i. What are the causes of fraud in commercial banks? ii. What are the various types of fraud in commercial banks? iii. What is the extent of fraud in commercial banks? iv. How is fraud detected and controlled in Nigeria commercial banks.

    1.5 Research Hypotheses

    For the purpose of the study the following research hypotheses will be formulated and tested.

    1. Ho: Poor management and poor security arrangement in commercial banks cannot cause fraud.
      Hi: Poor management and poor security arrangement in commercial banks can cause fraud.
    2. Ho: Loan fraud, cheque fraud and money laundering fraud do not constitute types of banks fraud.
      Hi: Loan fraud, cheque fraud and money laundering fraud constitute types of banks fraud.
    3. Ho: The extent of fraud in commercial banks is high.
      Hi: The extent of fraud in commercial banks is low.
    4. Ho: Fraud cannot be detected and controlled through the accounting and personnel control.
      Hi: Fraud can be detected and controlled through the accounting and personnel control.
    …

    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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