ABSTRACT
Cases of frauds and foreign in banks have not only become incessant but have also been on the increase in recent years. Although frauds and foreign in banks are global phenomena, their growth in Nigeria Deposit Insurance Corporations (NDIC) annual report for instance, presents a disturbing picture of rising trends of fraud in banks from N360.2 million in 1992 to N351.9 million in 1991. The amount unloved in frauds in commercial banks alone rose to N1, 377.15 million in 1993, whereas the actual expected loss rose from N64.8 million to N241.0 million.
Fraud, in banks is clearly unacceptably something’s drastic ought to be done to gently stem the tide in view of its image implications for the banking industry and the adverse effects it will have on the economy. The study emerges in response to this development. In carrying out this research work, questionnaires were distributed to the respondents for their reactions. Equally oral interviews were also carried out and some texts written by eminent scholars were consulted. The researcher believed all these would give enough information for a sound report. This study therefore seeks to identify the causes and effects of book fraud. After analyzing the returned 25 questionnaire distributed to the staff of Afribank Nigeria PLC Enugu, the following findings were made:
1. No internal control system is 100% errors proof but the internal control system of banks can be designed to make the perpetration of fraud difficult.
2. Non-periodic review of work by bank management gives loophole and the tendency to commit fraud in the industry.
3. The law enforcement agencies of the countries fail to deal seriously with the bank fraud sters apprehended and handed over to them.
Based on these, the following recommendation were made:
1. The use of close circuit television surveillance should be commencing in all banks.
2. Bank should ensure that computer operator’s passwords are kept in safe hands when there is movement of Alfred staff.
TABLE OF CONTENTS
CONTENTS PAGES
COVER PAGE
TITLE PAGE
APPROVAL PAGE
DEDICATION
ACKNOWLEDGMENT
ABSTRACT
CONTENTS
CHAPTER ONE
1.0 INTRODUCTION
1.1 BACKGROUND OF THE STUDY
1.2 STATEMENT OF PROBLEMS
1.3 PURPOSE OF THE STUDY
1.4 RESEARCH QUESTIONS
1.5 SIGNIFICANCE OF THE STUDY
1.6 SCOPE AND LIMITATION
CHAPTER TWO
2.0 LITERATURE REVIEW
2.1 MAJOR CAUSES OF BANK FRAUD
2.1.0 INSTITUTIONAL CAUSES OF FRAUD
VOLUME OF WORK
NUMBER OF STAFF
NATURE OF SERVICE
BANKING EXPERIENCE
INADEQUATE / LACK OF STAFF TRAINING
POOR MANAGEMENT
STAFF NEGLIGENCE
RECRUITMENT SYSTEM
POOR SECURITY ARRANGEMENT FOR DOCUMENTS
USE OF SOPHISTICATED ACCOUNTING MACHINES
FRUSTRATION
INADEQUATE INFRASTRUCTURE
LAPSES IN THE MANAGEMENT
CONTROL SYSTEM OF CORPORATE CUSTOMERS
2.1.1 ENVIRONMENTAL / SOCIAL CAUSES
SOCIETAL VALUE
PERSONALITY PROFILE OF DRAMATIZE PERSONNEL
SLOW LEGAL PROCESS
LACK OF EFFECTIVE DETERRENT PUNISHMENT
2.2 EFECTS OF BANK FRAUDS
2.2.0 EFFECTS OF BANK FRAUD ON THE BANKING INDUSTRY
CRISES OF CONFIDENCE AMONG BANK CUSTOMERS
IMAGE IMPLEMENTATIONS
2.2.1 EFFECTS ON OUR ECONOMY
2.3 NATURE AND TYPES OF FRAUD
2.3.0 ADVANCED FEE FRAUD
2.3.1 CHEQUE KITTING FRAUD
2.3.2 ACCOUNT OPENING FRAUD
2.3.4 MONEY TRANSFER FRAUD
2.3.5 LOANS FRAUD
2.3.6 COUNTERFEIT SECURITIES
2.3.7 CHEQUE FRAUD
2.3.8 MONEY LAUNDERING FRAUD
2.3.9 CLEARING FRAUD
2.3.10 COMPUTER FRAUD
2.3.11 TELEX FRAUD
CHAPTER THREE
3.0 RESEARCH DESIGN AND METHODOLOGY
3.1 AREA OF STUDY
3.2 POPULATION
3.3 SAMPLE SIZE
3.4 SAMPLING METHOD
3.5 INSTRUMENT FOR DATA COLLECTION
3.5.1 QUESTIONNAIRE
3.5.2 PERSONAL INTERVIEW
3.5.3 SECONDARY DATA
3.6 ANALYTICAL TOOLS
CHAPTER FOUR
4.0 DATA ANALYSIS AND INTERPRETATION OF RESULT
4.1 ANALYSIS OF OPERATIONAL QUESTIONS
CHAPTER FIVE
5.0 SUMMARY OF FINDINGS
5.1 RECOMMENDATION
5.2 OTHER CONTROL MEASURES
5.3 CONCLUSION
BIBLIOGRAPHY
QUESTIONNAIRE
