chapter One


1.1 Research background

There is no generally accepted definition of the term “fraud”. Fraud, in whatever form, is open-ended in classification, so fraud courts and authors seek to circumvent the definition of determination, despite the various implications attached to the concept of financial fraud. Address The Oxford and Chamber dictionaries define fraud as criminal deception, fraudulent act, trick, deceitful person, or deceit.

The Longman Dictionary defines fraud as “an act punishable by law for fraud for profit.

According to civil courts, fraud is “any act, omission or concealment that affects a statutory or equitable duty or department of trust, is rightfully exercised, is harmed by another, or exerts undue influence or available sexuality is exercised, i.e.

Bronifagbeni defines bank fraud as any fraudulent act or cause committed intentionally to obtain an illegal or unfair advantage. The goes further to define fraud to mean depriving a person dishonestly or something which is his or of something to which he or would or mighty but for perpetration in the fraud be entailed.

Having closely studies these approaches to definition to 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 manipulate in other to disposes the banking depressions/shareholders of their funds.

Therefore fraud and forgone in banking transactions can be perpetrated through falsification of entire in accounts of customers with a view to take advantage of the excess proceed.

Despite several definitions of frauds, the author believes that the ones so far given are rather appropriate advantages, 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:

(a) There must be decent or deception directed to the detriment of another or entirety

(b) A false representation has been made knowingly or without belief in its truth or recklessly, carelessly, whether it is true or false. (c) To obtain fraud damages, the defendant must show that he intended to follow the plaintiff and suffered damages as a result.

The place of the banking system in our economy cannot be overstated. They act as conduits through which all financial transactions pass. However, fraud is proving to be a serious bottleneck to the proper functioning of the role of the banking system in the Nigerian economy.People are starting to worry and may sooner or later lose confidence in the banking sector. . This is largely due to a sharp rise in fraudulent activity at The Bank Today bank, a repository of public funds and assets, and should rely on trust, not fraud.

1.2 Problem Description

Frequent instances of financial fraud at many financial institutions in our country are now considered of great concern by financial experts and microeconomists. This also limits the search for solutions to eliminate their occurrence. For some banking professionals, the fraud problem is an internal vice in the Nigerian banking system. They argue this because even though the public knows that it does not affect the speed at which customers withdraw or deposit money, numerous frauds at banks without the knowledge of outsiders is occurring.

These experts tend to believe this because the country is underserved and people have no choice but to use the banks available, especially the strong and established ones like Zenith Bank. there is. to fraud.

Fraud has paralyzed the roof, the foundation and creditability of our banking system, just pick up any national daily or from police record and you will be alarmed at the extent and magnitude of bank fraud in Nigeria banking system. Many banks have gone on distressed. Therefore the researcher is arming at finding out if there is any significant effect or solution to financial fraud in the Nigeria banking system which has to offer to these deficiencies aforementioned with special references with Zenith Bank Plc station road, Enugu. In summary, the major problems of this study are as follows

(a) The incessant/consistent casa of financial fraud

(b) Weakness this has attributed to banking industry prior to the introduction of effective control of financial fraud


This research work is generally set towards ascertaining the effects finical fraud have had on Nigeria banking industry since its inception in the Nigeria industry furthermore, the study is.

i) To determine if any loss of bills, the banking have in relationship with the financial fraud in banking and to what extent

ii) To examine the facts contained in the detection and control of financial fraud issued

iii) To research into the reason why people involve in financial fraud

iv) To diagnose the banking procedures with a view to fishing out loopholes and suggested way of plugging them. v) examining various administrative and governmental tools aimed at supplying or checking for financial fraud in our banking system;

vi) to recommend solutions to help screen for financial fraud in our banking system;

1.4 Research question

The researchers plan to dig deeper into the following questions:

1. What is the level of compliance with physical controls in the Nigerian banking system?

2. What is the role of internal audit in detecting and preventing errors and fraud in the Nigerian banking system? 3. To what extent is segregation of duties enforced at financial institutions in the Rivers State metropolitan area?

4. To what extent do other banks comply with the Central Bank of Nigeria’s regulatory requirements in the Nigerian banking sector?

1.5 Research hypothesis

To achieve the above objectives, studies describe the following prepositions

Most financial scams are unsuccessful due to the complexity of banking.

most financial scammers

1.6 Importance of research

There is general consensus that the financial system of any economy is the function that the economy revolves around. In this outlook, banks strategically occupy an integral position in the economy. This is a result of the economy’s primary function as a channel or intermediary between surplus and deficit agents: the efficient functioning of the economy. In conducting this study, researchers intend to emphasize the importance and benefits of applying appropriate and correct fraud prevention and detection measures in a cost-effective manner. This is especially useful as a benchmark for banks that are in trouble mainly due to fraud and other fraudulent activities. The insights gained from cost-benefit analysis are undoubtedly important for policy makers. This will help assess the effectiveness and efficiency of existing statutory laws and policies and identify areas where further effort is needed. The study also aims to consider how well-designed, well-installed, and consistently implemented internal control systems can assist in fraud screening. This is strongly believed to be of importance not only to the regulators, supervisors and management of commercial banks, but also to the entire banking industry in their various tasks to establish a sound banking system in the country. The investigation will ultimately be relevant to the general public whose trust has been shattered by alarming levels of fraud, failure and suffering in the banking system. It will make them aware of the constant concerted efforts that have been and are being made by governments and regulators to end this cancer called fraud. Additionally, this study is intended for those who may be interested in conducting further research on internal control systems related to anti-fraud in Nigerian commerce. Finally, operators themselves can learn how they have failed in the tasks and operations they set out to meet the financial needs of Nigerians.

1.7 Research scope and limitations

The study covered commercial and commercial banks operating in Nigeria. However, in this study, First Bank of Nigeria PLC, Union Bank of Nigeria PLC, Wema Bank PLC, Afribank Nigeria PLC, United Bank for Africa PLC, Orient Bank of Nigeria PLC, Eco International Bank PLC, Eco Bank Nigeria PLC, Guarantee Trust Bank PLC, FSB International Bank PLC. Reasonable recommendations are made on the basis of empirical evidence for verifiable and reasonable conclusions on how best to improve the performance of Nigeria’s commercial banking system. As a result of their research, researchers encounter several limitations that limit the scope of their research.

time limit:
Researchers conduct this research concurrently with other academic studies. As a result, less time is spent on research work.

Insufficient materials:
Another obstacle is the lack of materials. Researchers find it difficult to work long term with some of the necessary materials that could greatly contribute to the success of this research work.

Financial Constraints:
Inadequate funding tends to reduce the efficiency of researchers in obtaining relevant material, literature, or information and in conducting data collection (internet, questionnaires, interviews).

In general, detection is the extraction of specific information from a larger information stream without specific cooperation or synchronization with the sender.

According to the law, fraud is intentional deception to obtain an improper or illegal benefit or to deprive the victim of legal rights. Fraud itself can be classified into civil tort (meaning that victims of fraud can sue the fraudster to avoid fraud or to obtain financial compensation), criminal tort (fraud (meaning the teacher may be prosecuted and imprisoned by government agencies) or may not cause loss. Although part of money, property, or legal rights, it remains an element of another civil or criminal tort.

Control is the force that drives activity toward a predetermined goal. Manage your company’s internal operations to produce the most satisfying projects at the lowest cost. Cheating:
Banking is the negligence of bank officials who are contrary to the promotion of safe and sound banking operations or who openly disregard laws, rules, regulations or policies designed to promote safe and sound banking operations. And it leads to financial losses for banks. Fraud and cheating are also cheating.

Errors and irregularities:
D And torts that result in immediate loss of property are known as deprivation of value.

Banking sector:
The banking sector is a part of the economy dedicated to holding financial assets for others, investing those financial assets as leverage to create more wealth, and regulating their activity by government agencies. department.

1.9 Research organization

This research paper is divided into five chapters as he follows for ease of understanding. Chapter 1 deals with an introduction consisting of (research overview), problem description, research objectives, research questions, research implications, research methodology, and definitions. Research terminology and historical background. Chapter 2 focuses on the theoretical framework underlying the study, a review of the relevant literature. Chapter 3 describes the study design and methodology. Chapter 4 focuses on collecting and analyzing data and presenting results. Chapter 5 contains research summaries, conclusions, and recommendations.


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