Overview And Impact Of Frauds

Overview And Impact Of Frauds

Abstract

Fraud is an awful miracle, which like a view has raided Nigeria banking diligence and the society in general, and puts any organisation that’s comes into in a torture point of in a state of liquidation.

This study highlights the nature and colorful types of fraud, causes of bank fraud extent of fraud in banks, effect of bank fraud, discovery and control measure espoused by operation to check fraud incidents.

The purpose of this exploration work is to find out whether there’s significance position of fraud in Nigeria banks to know whether Nigeria practice, aid or abate fraud and to consider the acceptability of the internal control system in detecting and precluding fraud in the bank.

The system of data collection includes journal, handbooks and once work. The findings revealed that compensation of banking services and the conservation have helped to reduce the prevalence of fraudulent conditioning in the bank in view of this, it’s the recommendation that acceptable internal control system should be maintained effective fraud operation, strict adherence of executive operation programs should be assured to check and conceivably exclude fraud prevalence in the bank.

The discovery and forestallment of frauds should be elaborate effect between banks, their guests, the public and the government. Fraud in the banking system should as much a possible be minimized as it kills the bank and destroys the frugality of a nation.

Eventually the exploration work cited that nonstop alert should be the watch work if fraudulent practices are to be reduced and conceivably excluded in the banking assiduity.

Chapter One

Preface

Background Of Study

With an award match to getting on industrialized nation, Nigeria is witnessing true emergence of mortal coffers as professional, which made possible the establishment of service diligence and other business associations. This belief was rather too strong that the appetite to give fiscal services can no longer be overlooked. To accelerate profitable growth and profitable development both government and some systematized private groups were issued license to operate banks, in addition to a many banks that were formerly into business to operate methodical fiscal services.

This bank employed youthful men on women, but like every aspect of mortal bid have their challenges. One of the major challenges facing the banking is the prevalence of fraud. Bakere(2002.1) observed that the prevalence of frauds in the banking assiduity has in the recent, once posed a veritably serious trouble to the very actuality of fiscal institutions and is a matter of services concerned to the nonsupervisory authorities and the banking public. Despite the strict measures put in place by financial authorities and internal control measure to check the conditioning of fraudsters, frauds in the banks to be on the increase. Edozie as observed by Adebayo(2001.5) stated that available statistics reveal that thirty- one banks reported that they gests frauds and phony cases for the period( January – March 2002).

Banks are institution known to operate on the center- leg of public confidence. moment that conception no longer holds as bankers themselves either frauds or partakes deeply in fraudulent conditioning against her banks( employers).

According to Nigerian Deposit Insurance Corporation( NDIC) Annual report(1997.9) utmost of those banks were run around by a many greedy directors and officers who executed frauds and all kinds of unethical practices against their institutions to erode public confidence in banks.

This script has singularly contributed to the liquidation of numerous banks Agbata( 199813) observed that one could n’t avoid considering the fact that the torture in the bank assiduity was occasioned by fraud.

Now that cases of fraud has been established in the banks the need thus aisle to find out problems associated with fraud, its input on themacro-economy and how these problem are being dived , hence the need for this study.

Statement Of Problems

Generally speaking movement in the frugality of any nation affect from theinter-play of plutocrat and other profitable variables in Nigeria the impacts of plutocrat and banking have been the dominant factors determiningmacro-economic performance. Despite this unique position of banks between other sector of the frugality, banks( especially marketable banks) are faced with a good number of profitable heads specially among the fraud.

As a result there has been a lot of examens from the investing public about thenon-commitment and fidelity to duty by Nigerian bankers. This stands form the fact that torture in the banking assiduity began from fraud, which was occasion by bankers.

Directors and operation of banks are also blamed for their incapability to direct and control men and accoutrements effectively. Poor account on conciliation procedures may give an hand the occasion to spot a weakness and concoct a plan to take advantage of it. This is due to the weakness of internal control in a bank. Understanding what motivates this individualities and how they’re suitable to reationalize their geste is crucial to precluding it. Further more, they’re blamed for using their positions and authorities to defraud their institutions. Repeated prayers and advising from well- meaning individualities and government for a change of these negative tendencies to the position have yielded little or no tip.

review has not been directed to bankers, board of directors and operation alone. Government and controller authorities are blamed for appointing men of doubtful integrity to oversee the affairs of banks and failing. In their statutory part of supervision. While fraud have been in vague in the banking or fiscal institutions. The situation worsened when indeed those who should cover and control fraudulent practices came the malefactors. This is why the failed bank decree on frauds was targeted at the assiduity.

numerous banks came technically torture, the member adding from eight( 8) in 1990 to forty two( 42) in 1994 and fifty two( 52) by the end of 2002. This is due to inefficiency operation and it has caused this imminence to be ineluctable in every banking assiduity or fiscal institution.

numerous concerned citizen see these result as contributing to the poor performance of banks as substantiation by torture in the banking system.

It’s in recognition of these problems that this study seeks to probe into the problems associated with and in the banking assiduity and the places which nonsupervisory authorities should play to amend this unattractive trend to enhance effective fiscal system.