AN APPRAISAL OF FRAUD PREVENTION MEASURES IN NIGERIAN BANKING SECTOR ( CASE STUDY OF ACCESS BANK PLC OWERRI )

Abstract
The nature of bank dealings is basically on cash and financial instruments, which are negotiable  and can be transferred easily. As a result, it is so much, exposed to fraud- internally and externally. This  malpractices is common in all areas involving cash, cheques and fraud transfer operations including the e- banking system. Many researchers have directed their work towards finding the cause of fraud. However, due to the role played by banks in the economic development, it becomes necessary that the upswing of fraudulent  practices be nipped in the bud. This work is therefore  based on the detection, prevention and control of bank fraud. The work will be divided into three chapters, chapter one will be a general introduction and an overview of the subject matter. It will also highlight the purpose . Chapter two is based on literature review, having regards to finance fraud, bank fraud, nature of bank, causes and prevention....




TABLE OF CONTENTS
Title page
Approval page
Dedication
Acknowledgements
Abstract
Table of contents

CHAPTER ONE
1.0 Introduction
1.1 Background of the study
1.2 Statement of the problems
1.3 Objective of the study
1.4 Research questions
1.5 Significance of the study
1.6 Scope of the study
1.7 Limitation of the study
1.8 Definition of terms

CHAPTER TWO
LITERATURE REVIEW
2.1 Brief history of case study centre
2.2 Meaning and definition of concept
2.3 Nature of bank fraud
2.4 Ways banks and customers can be affected
2.5 Non bank employee’s malpractices
2.6 Cause of bank fraud
2.7 Prevention of bank fraud

CHAPTER THREE
RESEARCH DESIGN AND METHODOLOGY
3.1 Introduction
3.2 Research design
3.3 Sources /method of data collection sources of data
3.4 Method of data collection
3.5 Population and sample size
3.6 Method of data analysis


CHAPTER FOUR
PRESENTATION AND ANALYSIS OF DATA
4.1 Introduction
4.2 Presentation of data
4.3 Analysis of data

CHAPTER FIVE
SUMMARY, CONCLUSION AND RECOMMENDATIOSN
5.1 Summary of findings
5.2 Conclusion
5.3 Recommendations
5.4 Area of Further Study

CHAPTER ONE
1.0 INTRODUCTION
1.1 BACKGROUND OF THE STUDY
The position of the banking sector in our economy cannot be over emphasized. Its main function is to act as intermediary with the responsibility of channeling of funds from the surplus sectors to the deficit sectors of the economy.
Those who participate in the Nigerian banking sector include; the central bank of Nigeria (CBN), commercial banks, and community banks among others. These financial institutions deal with financial instruments that are transferable and desirable in nature. However, the recent spate of fraud and forgeries tend to pose a serious bottle neck to the proper functioning of the banking system, thereby increasing the associated risks and resultant business losses reported yearly.
A critical review of events in the last few decades reveals that the prevailing societal values and practices are not helping matters at all. A society, where criminals and persons with questionable characters are applauded and honored with chieftaincy title cannot fight this epidemic. Instead more persons are growing for the act daily.

Frauds are committed in most cares for gain and frauds men are generally motivated by greed. This is true because the use in the activities of frauds men tend to respond to the growing desire for wealth. A recent survey by the financial institutions framing center Lagos, puts the average reported bank fraud cares at 500 yearly resulting in millions of naira been loss by banks and customers alike.
Given this epidemic toll, the problem now is how to effectively checkmate the activities of these frauds men who seem to be matching their skill with every development in the system. Even though fraud is said to be inherent in the nature of banking operations, it could still be prevented if not controlled totally that is the purpose behind this study.

1.2 STATEMENT OF THE PROBLEMS
Many banks have lost its foundation as a result of huge amounts being written off as bad debts, sometimes by dubious loan arrangement. As a result of this, a lot of banks have gone in distress and those customers affected having to bare their pains alone. Other problems to be addressed are;
The incessant cares of financial fraud in our banking sector and it comes through and of the following ways.

·        Defalcation of customers cash lodgments by cashiers.
·        Manipulation of customer accounts
·        Clearing of forged bank cheques and drafts
·        Dry posting of fictitious credits through the computer
·        Fraudulent transfer based on forged letter of authority etc.

1.3 OBJECTIVE OF THE STUDY
This research work is generally set towards the effects financial fraud have had on the Nigerian banking system and to determine how the spread should be avoided. Furthermore, in more specific terms, the study is aimed at.
·        Identifying reasons why people involve themselves in fraudulent activities.
·        Revealing how and why the activities of frauds men are scarcely uncovered.
·        Examining the various management and given mental control devices geared towards eliminating or checking financial fraud
·        Evaluating ways to combat the spread of fraud in our banking sector through effective monitoring of electronic transaction until properly executed.

 1.4 RESEARCH QUESTIONS
·        Is your bank computerized?
·        What effect has computer toward the security of your bank?
·        Has fraud cause any negative effect in the economy of Nigeria
·        How often does your bank record case of financial fraud?
·        Does fraud has any benefit in the Nigeria economy?

1.5 SIGNIFICANCE OF THE STUDY
This study is intended to highlight the indispensable role of an internal control system in relation to maintaining a sound banking system. It will equally be of immense help and benefit to other establishments both in public and private sector. It is hoped that management will appraise this research work and use it to equip itself with the requisite check and control that are necessary for developing on enviable banking system.

For prospective auditors and accountants, it is a material worth reading. It will enable them to understand what fraud is, how it is been committed, those usually involved where to focus attention and internal control system is an in evitable atmosphere for any business environment.

1.6 SCOPE OF THE STUDY
This research work is with particular reference to intercontinental bank plc ( the now access bank plc), Wetheral road Owerri, due to certain reluctance on the part of some staff of the bank to give away relevant statistical data on fraud issues in their branch, a visit to other banks where relevant materials could be gathered became necessary

1.7 LIMITATION OF THE STUDY
The execution of this work witnesses a lot of constraints, some of which were;
·        Financial constraints: Generally cost of living is high, research work like this one takes lot to complete. As a result, for this particular study, the researcher did not find it easy since the financial involvement was much.
·        Time constraints: As already mentioned, this research work was conducted alongside other academic activities. Therefore, the allocation of time among these activities. In order to achieve a balance between academic demand and office work wasn’t easy.
·        Research data acquisition constraints: Give the nature of the research work and topic, it was not easy to acquire all the data needed. Many of the workers refused to relate some of the data needed for fear of leaking classified information. These problems persisted in spite of the fact that they were informed that the works was only for academic purpose. Eventually with some assistance a number of the materials needed were realized.



1.8 DEFINITION OF TERMS
For the purpose of clarity, the following terms are explained as used in this work to aid proper understanding of the subject matter.
AUDITORS: These are specialists who are trained specifically for tracing a financial statement and making sure that it gives true fair view.
ACCOUNTANTS: These are also qualified staffs, but their functions are to summarize, record, interpret and communicate financial statements properly to users at a given point in time.
BANKS: These are mainly financial institutions responsible for depositing of money and other durable and valuable assets and also channeling of funds from the deficit sector to the surplus sector
COMMERCIAL PAPERS:  These are promissory notes with short period ranging from a few days to nine months of large.
DOCUMENTS:  A document is an official or formal paper, from, book etc, given information about something, evidence or a record of something
FRAUD:  This means deceit, imposture, a snare and deceptive tricks.
FORGERIES: This is a crime of copying money, documents, etc in order to deceive people.
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