AN EVALUATION OF THE EFFECT OF FRAUD IN THE BANKING SECTOR
|BANKING AND FINANCE|
No of pages
|MS Word & PDF|
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Banking was introduced into Nigeria by the colonial master in the 19th century by Elder Dampels Company after the failure at the bank system.
Between 1959 and 1993 many banks were established some operated while some collapsed because there were no specific laws, regulation the practice of banking.
It was a “laissez fair” era dominated by the rules at thumb.
The first indigenous legislation enacted to regulated bank business is the banking ordinance 1952 which introduce the principle at bank licensing based on the fulfillment at certain condition such as meeting the minimum capital and other specified requirement.
The level of fraud in the present day Nigeria has assumed an epidemic dimension
. It has eaten deep into every aspect of our life to the extent that a three year old child talk about yahoo mail or 419 (advance free fraud), newly discovered sobriquet for advance free fraud that is hunting us as a nation.
Nigeria which all of its natural and human resources tether on the brink of destruction because of fraud much of what we do is “cutting leaves” instead of dealing with the root problem.
Generally, fraud takes its roots from the human heart.
It is anoxia that the heart is deceitful adores all things and is desperately wicked fraud is the number one enemy of the business world, no company is commune to it and it’s in all work of life.
No area of the economy is immune from fraud, if nation checked might cause run on the banking sector.
1.1 STATEMENT OF THE RESEARCH WORK
Some of the various research questions which this project attempts to derive an answer include:
• What can be said to the causes of the increasing rate of fraud in banks?
• What is the effect or damages fraud has caused banks her customers?
• What is the impact of internal control in the prevention and detection of fraud in banks?
• What are the classifications of fraud in banks?
• What are the types of banks common fraudulent practice?
• What are the factors influencing the existence of fraud in banks?
1.2 OBJECTIVES OF THE STUDY
The primary objective of this research is to find practical means of minimizing the incidence of fraud in banks. To achieve this objective the following secondary objective review existing literature collects and collates information on fraud in banks.
• To identify various types of fraud perpetrated in banks.
• To identify the various means employed defrauding in bank
• To review existing literature, collect and collate information fraud in banks.
• To determine the effect of fraud on the business of banking
• To determine the magnitude and frequency of fraud in the banks.
• To recommend measures for reducing the identify mean through which the recommended measure can effectively be implemented.
1.3 RESEARCH HYPOTHESIS
Hypothesis tested: two hypotheses are formulated and tested in this study.
Ho: The lack of a good internal control in snot a major cause of fraud in banks.
Hi: The lack of a good internal control is a major cause of fraud in banks.
Ho: Banks with internal control system can not prevent the menace of fraud.
Hi: Banks with internal control system can prevent the menace of fraud.
1.4 SIGNIFICANCES OF THE STUDY
This research study makes great impact to so many individuals and groups. They are as follows:
1- This study helps in broaden the knowledge of both bank staffs and customers of the banks.
2- Credit standards influence the quality of the firms customers.
3- It helps to detect fraud in banks
4- It helps to determine the effect of fraud on the business of banking.
5- It assists banks and companies to safeguard against occupational fraud.