The Causes And Prevention Of Fraud In Banking Industry

The Causes And Prevention Of Fraud In Banking Industry

Chapter One

Preface

The banking assiduity is yet in its constructive stage in Nigeria. No country whether developed or developing an go to over look the directions its banking institution live in their development especial when we consider the unique position of the assiduity in the pace and direction of profitable growth of the nature. There arise a need thus of state emphatically that the soundness of the individual dinghy in frugality is an horizonless asset which act as a dynamic factor of growth to the general frugality.

The part of fiscal institution in easing the process of intermediation form fat profitable unit to disfigurement profitable and unit come consummate intermediation is the ole the fiscal institution hassle varies problem in fraud. It’s assumed that an intimidating proportion that there’s no doable sign near future.

principally it noted that fraud and loss are anticipated miracle of my business exertion the compass and graveness are what produce concern in the frugality. The superstud identifies varies forms and nature of bank fraud clearing fraud phonies and falsification of account were the most common forms of fraud linked with 33 of banking institution in the frugality independently factors that grease fraudulent practices were also linked. These range form the socio profitable factors to weak internal control system. This is trouble undermines the operation and performance of banks and could be disastrous if there aren’t checked.

Background Of The Study

Fraud is a social wrong it affect the entire sector of the frugality which banking system is inclusive although fraud and loss in an anticipated part of any business exertion the compass and graveness is what creates concern in a developing frugality like ours.

Fraud in banking sector is generally looked at as acts that involve the loss of asset a through deceitful and dishonest means. It clearly constitutes one of the most serious trouble to the practice and spread of banking in Nigeria fraud and phonies involved professional crooks that are seek to matriculate the support and co-operation of the dishonest members of the bank staff.

In pursuit of the ideal of the study a methodical approach will be followed. The study is divided into four chapter. Chapter one takes a look at its preface background of the study the statement of problems purpose ideal of the study significance of study limitation of study and description of terms chapter two deals with the literature review “ general view ” types of fraud causes of fraud element that facilitates fraud. chapter three concentrates on design and methodology sources of data position of data and tools of analysis chapter four comment on findings of the effect and the recommendation against fraud action to be taken to meliorate the detriment done to the bank summary and conclusion will mark the end of their study.

Statement Of Problem

Generally speaking professional fraud is new not just because it exposes the societies anemone and raise important questions of public interest which follows this

Fraud is banks nearly leads to lose of plutocrat naturally belongs to some one other than the bank.

In every bad conditions where fraud occurs with crippling frequence and in noncommercial sizes the bank may be forced to liquidate accordingly and drastic reduction of patronage in the banking sectors.

The effect of fraud inversely dastards operation policy to encompass impertinence and control system which are by them expensive to maintain.

Bankers as a matter of urgency are anticipated to be veritably careful in the discovery for going and forestallment of fraud to help cub and buffer the effect of the imminence.