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ABSTRACT

Cases of frauds and foreign in banks have not only become incessant but have also been on the increase in recent years. Although frauds and foreign in banks are global phenomena, their growth in Nigeria Deposit insurance Corporations (NDIC) annual report for instance, presents a disturbing picture of rising trends of fraud. In banks from N3602 million in 1992 to N3519 million in 1991.

Fraud, in bank is clearly unacceptably something’s drastic aught to be done to gently stem the fide in view of its implications for the banking industry and the adverse effect it will have on the econo

TABLE OF CONTENTS

 

CHAPTER ONE

  • Introduction
    • Background of the study
    • Statement of problem
    • Objective of the study
    • Research question
    • Hypothesis
    • Scope of the study
    • Significance of the study
    • Definition of terms

References

CHAPTER TWO

  • Literature review
    • Theoretical review
    • Effects of Bank Frauds

2.3  Nature and Types of Fraud

2.4  Empirical Review

References

CHAPTER THREE

3.0  Research Design and Methodology

3.1  Area of Study

3.2  Population

3.3  Sample Size

3.4  Sample Method

3.5  Instrument for Data Collection

3.6  Questionnaire

3.7  Personal Interview

3.8  Personal Observation

3.9  Secondary Data

3.10   Analysis Tools

CHAPTER FOUR

4.0  Data analysis and Interpretation of Result

4.1  Analysis of Operational Question

CHAPTER FIVE

5.0  Summary of Finding

5.1  Recommendation

5.2  Conclusion

Bibliography

Appendix

Questionnaire

CHAPTER ONE

INTRODUCTION

1.1  BACKGROUND OF THE STUDY

The level of fraud in present day Nigeria has assumed on epidemic dimension. It has eaten deep into every aspect of our life to the extent that even three years old child talks about 419, the name given to the newly discovered fees fraud that is hunting us a nation. Fraud is defined as “deceit or tricking deliberately practiced in order to gain some advantages therefore there must be a dishonest intension and action must be intended to benefit the perpetration to the detriment of other person.

Going by this definition, frauds in the Nigeria economy cannot be restricted to the bank alone. Although frauds cut across al sectors of the economy and the size of an enterprises usually determines the volume of frauds perpetrated, such problem as inadequate manpower, poor internal control system, inadequate incentives and unsuitable legal framework for dealing with offenders, downturn in the economy recognition being accorded the wealthy people regardless of their sources of wealth play a major role in the perpetration of frauds. The fear now is the threats which this devilish and unscrupulous act will pos to the stability and survival of individual financial institution and the performance of the industry as a whole for one thing, frauds result in huge financial losses to financial institutions and their customers, depletion of shareholders frauds and capital base as well as loss of confidence in financial institutions.

Frauds and foreign also have negative effect on the banking industry. Today, various banks cannot withstand the growing pressure of competition among various banks due to the monster called bank frauds. Equally, the confidence places on banks are fast eroding because some people new prefer keeping their money at their homes instead of keeping them in the banks. The fear is now……that if this act is not arrested, it might not find it wise to transact business via our banks.

1.2  STATEMENT OF THE PROBLEM

The problems of this study revolves around finding out the reasons for the continuous cases of bank frauds in virtually all banks and other financial institutions other problems include why banks have not been able to find solutions that will help in curbing banks and financial institutions frauds.

Furthermore, the research is aimed at finding the economic effects of frauds to the total economy of the nation, and the consequences of these frauds to our international relationship on global market economy.

1.3  OBJECTIVE OF THE STUDY

The major objectives of this study are

  1. To determine how lack of effective internal control lead to banking fraud
  2. To ascertain how lack of enough motivation, or incentive causes banking fraud.
  3. To determine why societal values contribute to bank fraud.

1.4 RESEARCH QUESTION

The following research question guided this study

  1. What ways will lack of effective internal control lead to banking fraud?
  2. In what ways will lack of enough motivation, or incentive cause banking fraud?
  3. In what ways will societal values contribute to bank frauds?

1.5  HYPOTHESES

  1. Ho: Lack of effective internal control has not led

to banking fraud.

Hi:   Lack of effective internal control led to

banking fraud.

  1. Ho: Lack of enough motivation has not cause

banking fraud.

Hi:   Lack of enough motivation cause banking

fraud.

iii.    Ho:  Societal values has not led to contribute

bank fraud.

Hi:   Societal values have led to contribute bank

fraud.

 

 

1.6  SCOPE AND LIMITATIONS OF THE STUDY

Bank fraud and its effects on our economy is an extensive topic that may involve commercial banks and community banks. The researcher would like to touch all aspects of banking activities, but for want due and financial constraints, the researcher limits his work to frauds in the commercial bank especially Union bank Nigeria Plc Enugu.

Most importantly, records and publications could be reached easily and frauds traced in the commercial banks than other banks. Though the writer dwelled a little into fraud in merchant Bank emphasis is place more on commercial banks.

1.7  SIGNIFICANCE OF THE STUDY

       The significance of the study has practical and academic significance.

Practical Significance

The research work will be beneficial to bank and financial institutions who are directly facing extrication as a result of financial losses due to fraud. It will also be beneficial to the government and other public factors who are gradually bank confidence in banks and the customers banks relationship that are greatly hampered as a result of frauds.

This project will also be beneficial to the general public who are losing huge sums of money to banks that are declared without adequate compensation. It will enable them know the various ways frauds are perpetrated. The general public will also benefit as this will enable them know the role of the organization or the management in checking frauds.

 

 

 

Academic Significance

The research work will be beneficial to those that are in the academic field the researcher; the student will find the project very useful.

1.8  DEFINITION OF TERMS

Fraud refers as an international misrepresentation of financial information by one or more individual among management, employees or third parties.

Fraud also defined by B. Ijenfa as misappropriation, theft or embezzlement of corporate assets in the particular economic environment.

Bank is defined by  Orjih John as a place were money and other things are kept.

 

 

REFERENCES

Dandago, K. (1999) Fraud Detection  and Control at Local government level. The journal of the Association of National Accountants of Nigeria. Volume7 No.4

Ijenfa, B. (2002) International Controls and fraud prevention Accountant’s perspective. The journal of the Association of National Accountants of Nigeria. Volume 10 No.4

Orjih, J. (1996) Element of Banking. Enugu Rock Communication Nig Publisher.

 

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