Fraudulent Act In The Banking Industry Causes Effects And Possible Remedies

Fraudulent Act In The Banking Industry Causes Effects And Possible Remedies

Abstract

There were so numerous difficulties which this exploration work was brazened with bank officers were so reticent to give out helpful information of this problem and there was also the cost of exploration and limited time for accession analysis and mount or interpretation of data trouble was mode bys the experimenter to tête-à-tête visit places where the below secondary data were located. In the absence for the need for primary data question dyads administration was deeined unqualified there frontward every material used in the exploration jotting were fully work done by other people particular trouble was only employed in tracing out applicable information demanded for the design.

After due analysis of the available secondary data the experimenter discovered the statistical data of member of staff involved in frauds and phonies , retunes of marketable and trafficker bank in frauds and phonies and so on.

Experience has shown that indeed in the most regulated home accident can still be. Bank staff should be duly screened before being employed and acceptable bank education should be organized for the banks doubters.

Chapter One

Preface

Background Of Study

Fraudulent act in the banking assiduity ” is of a special concern to the financial control and administrative authority who are charged with the safety of individual banks and the soundness of the banking assiduity.

Fraudulent act ” is common in Nigeria banking assiduity, but guests as well as workers, temporary staff engage in fraud and phonies in banks.

Frequent circumstance of fraud eventually distracts the attention of the operation and lead to increase in running cost.

Time and energy that would have been spent perfecting client service would be expended on precluding fraud. adding cases of fraud and phonies in our banks recently if not shoped would pose certain pitfalls to the stability and survival of individual banks and the performance of the assiduity as a whole. Reported cases of fraud in trafficker banks dropped significantly from 16 in 1997 to 9 during the time 1998 also, there was a reduction in the total quantum involved, from 187- 59 million in 1997 to N67.35 million in 1998.

Fraud in whatever loss is measureless in bracket. In banking assiduity, there could be donation of forged cheques granting of unauthorized loans unauthorized over draft, position of fictitious credits, repression of cheques, fraudulent transfer and pullout and so on Dr John Orjih in his textbook, defined fraud as the deliberate trouble aimed at carrying unlawful advantage at the detriment of another person who’s the due proprietor of the fund.

Awosanya, extensively defined fraud as any deliberate action in whatever from, written spoken, physically designed to deprive a licit proprietor or his or her asset, property or right.

Osbarn, defined fraud as a means of carrying material advantage by illegal or unlawful means involving certain moral scores.

Statement Of Problem

Banks operate on the pivot of public confidence and trust in the capability of the bank of deliver as and when demanded the Nigeria society is poisoned with the desire to get rich hot so as to fell important, as they bear that wealth is the measure for power and significance. It’s in consummation of these fact that those get rich quick inclined set of people direct their attention to defrauding the banks.

Fraud has cause the loss of large quantum of plutocrat, contributing to the liquidating of several banks and consequent severance and analogous problems.

This study is thus beset bys the actuate problem of discovering the birth and cause of fraudulent act in the banking assiduity the magnitude of fraudulent practices in the police records remains worrisome, and this has caused a partial palsy an the root of the root of Nigeria banking system.

This study is also besieged by discovering and suggesting ways of barring these frauds before they turn to full palsy on the banking system and entire frugality.

The Aim Of The Study

The objects of this study are as follows

1. To discovered the crucial interest of involvement in frauds by member of the public.

2. To discovered the extent of involvement of Nigerians in fraudulent practices.

3. To estimate the consequences of the frauds in the banking assiduity.

4. To discover ways in checking and precluding frauds in out banks

5. It helps to know the frequent circumstance of fraud and phonies daily and annually in our banks

6. It gives information demanded to gain good understanding of the conception that will be stressed on fraudulent practices.

Exploration Questions

i. How can bank staff be informed in precluding fraud

ii. What are the ways in checking and precluding fraud

Significance Of The Study

This study shall be remarkable in the following ways

a. It shall inform banks an deconstructions of the extent of fraud and suggest means of checking it.

b. It shall expose Nigerian banks to the extent of fraudulent conditioning.

c. It shall discover other problems caused by fraud in the banking assiduity.

d. It shall inform the general public on average number of banks rendering returns total number of fraud cases daily and annually total quantum involved factual anticipated loss and so on.

e. It shall also serve as a base for other experimenters who may to go into in depth study on this issue( fraud)