chapter One


1.1 Research background

As in the banking sector, there are concerns that the operation of internal control systems may be abused, as management cannot ensure that rules and regulations are effectively enforced.

The end result could be that everyone will be able to fill the roster in any way they can, thus giving those looking to commit fraud a golden opportunity that has been wasted for so long. I have.

Prior to 1952, there was no banking technology or form of regulation regulating the establishment and operation of a commercial bank or central bank to oversee the administration of Nigeria’s banks.

During this time many banks were registered and some were out of business. Since then, fraud has remained an integral part of the banking industry.It has eroded the confidence of Nigerians in financial institutions and consequently slowed the development of banking in Nigeria. However, the introduction of the first Banking Ordinance in 1952, the introduction of the Central Bank of Nigeria (CBN) Act in 1959, and other subsequent laws and regulations amended in the same year reduced the activity of financial institutions in the country. and business changed. Regulated and controlled. Rather, the scale of fraud at financial institutions is increasing, and the techniques are becoming more sophisticated every day.

At present, the latest procedures and advances in information technology, such as communication systems, automatic electrical devices, computers, etc., have been introduced into the banking system, and bank employees are taking various precautions instead of taking nuclear ratios. , the scale of the amounts involved is increasing. in geometric proportions.

Anikpitan (1976), a respected banker, argues that:

Banks are now taking extra precautions to clear checks as Nigerian bank bosses charge an average of N1 million per working day per year for fraud and forgery charges, investment finds is indicated by Me. Ashimi (1976, p. 6) argues that:

Cheating has become so sophisticated that a forged signature on a sheet of diamonds looks so good that the rightful owner thinks it is his signature.

However, the current situation with reported constant sources of bank fraud could undermine depositors’ confidence in the country’s banking system if not investigated immediately. Such a situation could also drive foreign investors out of the country.

Ugamadu. N. In an article glorifying bank fraud, In Business Times, July 29, 1991, he said:

If the banking sector is so vulnerable to fraud, the logic of creating a viable and conducive environment for the country becomes moot.

Ojo A.T. (1982) emphasized this. As an open secret, financial institutions do not have significant resources of their own compared to the total resources available.

1. Problem definition

Problems with this study are:

1. The robber uses scientific means to access the vault (computer room).

2. Outbreaks of bank fraud have eroded public confidence in banking, resulting in slow development of banking in Nigeria. 3. Fraud leads to unnecessary loss of public funds and distresses the bank’s management.

4. The rise in bank fraud has created a great deal of mistrust between banks and their customers.

1.3 Purpose of the survey

1. Identify possible errors and loopholes (if any) in your system.

2. Provide useful knowledge-based recommendations on how best to prevent fraud from occurring through an effective internal control system;

3. Determining the level of bank staff compliance with internal control measures

4. A review of the adequacy and adequacy of currently employed anti-fraud measures. 1.4 Scope of investigation

The scope of the study is limited to “Internal Control Systems as an Anti-Fraud Factor in Financial Institutions”, with reference to First Bank PLC Enugu Main, Nigeria.

1.5 Research question

1. How regularly does the internal control system check for system deficiencies and gaps?

2. To what extent is First Bank of Nigeria PLC Enugu primarily fraudulent? 3. To what extent do internal controls measure the degree of bank employee compliance?

4. How regularly do internal controls measure the relevance and adequacy of the anti-fraud controls in place?

1.6 Hypothetical view

The financial institution’s current internal control system is inadequate in the current technology and sophistication world of First Bank of Nigeria PLC. Hi:
The financial institution’s current internal control system is well suited to the current technology and sophistication world of First Bank of Nigeria PLC.

First Bank of Nigeria PLC’s current internal control system is not effective.

First Bank of Nigeria PLC’s current internal control system is in effect.

First Bank of Nigeria PLC’s current internal control system does not prevent fraud.

First Bank of Nigeria PLC’s current internal control system is capable of preventing fraud. 1.7 Importance of research

This study is important for the following reasons.

Findings of this study help clarify the extent of fraud at First Bank plc Enugu Maine

The results also help financial institutions, especially first banks, to see the extent of fraud in their banks.

As a result, fraudulent staff are exposed, thereby preventing fraud in the institution.


Leave a Comment