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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