FRAUD
DEFECTION AND PREVENTION IN COMMERCIAL BANK
(A
case study of First Bank Nigeria plc Kaduna Regional Office Kaduna)
TABLE OF CONTENT
Title
page – – – – – – – – – i
Approval
page – – – – – – – – ii
Declaration – – – – – – – – – iii
Dedication – – – – – – – – iv
Acknowledgment
– – – – – – – – v
Abstract – – – – – – – – – vi
Table
of content – – – – – – – – vii
CHAPTER ONE
1.0
Introduction – – – – – – – – 1
1.1
Background of the study – – – – – – 1
1.2
Statement of the
Problem – – – – – – 2
1.3
Study Objective – – – – – – – 2
1.3.1 General Objective – – – – – – – 2
1.3.2 Specific Objective – – – – – – – 3
1.4
Research Questions – – – – – – 4
1.5
Significance of the
Study – – – – – – 5
1.6
Scope of the Study – – – – – – – 6
1.7
Historical background
of the case study of first bank Nigeria
7
CHAPTER TWO
2.0
Literature Review – – – – – – – 10
2.1
Definition of Fraud – – – – – – 10
2.2
Parties of fraud – – – – – – – 11
2.3
Various Types of Bank
Fraud – – – – – 12
2.4
Factors That Facilitate
Frauds – – – – – – 14
2.5
Detection of Frauds – – – – – – 16
2.6
Trends of Fraud In
Modern Terms – – – – – 17
2.7
Treatment of Fraudulent
Situation – – – – 18
2.8
The Right of A Banker
To Recover Of Money
Paid Against A Forger – – – – – – 19
2.9
Effects of Fraud on Economy – – – – – 23
2.10 Prevention
of Fraud – – – – – – 23
2.11 Limitation
to the Various Control/Measures – – – 27
CHAPTER THREE
3.0
Research Methodology – – – – – – 29
3.1
Introduction – – – – – – – 29
3.2
Method of Data
Collection – – – – – 30
3.3
Population and Sample
Size – – – – – 31
3.4
Sampling Techniques and
Limitation – – – – 32
3.5
Method of Data Analysis
– – – – – 32
CHAPTER FOUR
4.0
Data Presentation and
Analysis – – – – – 33
4.1
Introduction – – – – – – – 33
4.2
Data Presentation – – – – – – – – 33
4.3
Data Analysis – – – – – – – 40
4.4
Testing of Hypothesis – – – – – – – 44
4.5
Research Findings – – – – – – – 47
CHAPTER FIVE
5.0
Summary, Conclusion and
Recommendation – – 48
5.1
Summary – – – – – – – – – 48
5.2
Conclusion – – – – – – – – 50
5.3
Limitation of the Study – – – – – – 51
5.4
Recommendation – – – – – – – 52
Bibliography – – – – – – – 54
Appendix – – – – – – – – 55
CHAPTER
ONE
1.0
INTRODUCTION
1.1
BACKGROUND
OF THE PROBLEMS AND STUDY
Fraud have been or
become a common feature in all aspects of business life in Nigeria. It has
assumed a predominant dimension in the banking industry such that it now
constitutes serious threat to the proper practice and spread of the Nigeria.
Millions of naira are lost through the machine of either to account holders or
bank officials or account holders in collaboration with bank officials. The
offence ranges from the falsification of entries, forgery of signatures of accounts holders, to that by
banks cushions and customers.
At most serious
dimension has been added to this practice by so called relax frauds, where by
false tele-message in respect of million naira. Are transacted or transmitted
to forger fictitious account over-seas, cashed only overseas collaborators, and
there by draining Nigeria of her foreign exchange earnings.
Because increase in
number and amount involved in these fraud and the supplication with which they
are carried out complied with the higher status of banks officials involved,
there is need for the industry to carry out a comprehensive study of the types
and cause of frauds with a view to proffering remedies to the banker worm.
1.2
STATEMENT
OF THE PROBLEM
Frequent occurrence of
frauds, distracts attention of the management and lead to increase running
cost. Time and emerge that should be spend on improving customers service
equipment activities are spent in setting up fraud control procedures and
systems or setting fraud ease out of court.
1.3
STUDY
OBJECTIVE
1.3.1
GENERAL
OBJECTIVE
This research work is
the first and for most meant to give an insight to the effective investigation
of the treat of fraud so that banks can take necessary action to remedy the
situation. In the high of this suggestion are given on how the subject matter
(frauds) can be detected when it occurs and also on of the how it can be
controlled. This will ensure efficient running of the operation of the bank and
will help eliminate necessary wastages.
1.3.2
SPECIFIC
OBJECTIVES
1. This
study is designated to cover frauds of various kind of fraud in the commercial
bank, visa-visa it prevention and detection
2. It
also covers the factors that may lead to frauds, so that bank can be aware and
take necessary corrective measures against those factors.
3. Another
area covered by this study is to low a fraudulent situation could be treated in
which the banks does immediately after the dictation of frauds of course of any
research work is bound to be constrained by certain limiting factors.
The time will be not
sufficient enough to record the topic an extensive coverage. More so by
choosing first bank of Nigeria, plc being a lending banking institution in the
country the researcher hope to have access to the require information and
necessary at lesser cost without much energy and wastage.
4. The study also give a higher suggestion and
how the subject matter (frauds) can be detected when it occurs and also an how
it can be controlled.
1.4
RESEARCH
QUESTIONS
Fraud is an
international distortion of financial statement for whatever purpose and it is
a misappropriation of assets whether or not it is accompanied by distortion of
financial statement.
Fraud has become a
common activities in the banking sector in Nigeria it has become a predominant dimension
in the banking industries such that it now constitutes serious threat to the
proper practice and spread of in the Nigerian banking industry, that is why the
researcher have the following question in mind:
i.
How does the fraud
trends be tackled and elimination in the Nigerian banking system?
ii.
What are the most
significant factor or measures of detecting and controlling the frauds?
iii.
Does the management of
the banks or officials make any contribution in the reduction of frauds?
iv.
Do the staffs effort
make any impact to the reduction of fraud?
v.
To what extent does the
government helps in detecting or fighting against the fraudulent act in the
banking sector?
vi.
What are the modern
techniques or preventives measures of fraud detection in Nigerian banking
industry?
This
are some questions does the researcher have in mind with the view to answer
them at the end of the research.
1.5
SIGNIFICANCE
OF THE STUDY
Apart from the
importance of the study, it is also the fact that it will create awareness for
the careless bank (if any) on the consequence of allowing the fraud to occur.
Also for the banks
already taking care to give them additional suggestion on how to improve more
on their preventive/or control measures and that is the research have discussed
to general limitation.
The study will also
helps the bankers to be informed on the right they have to cover money they
have paid against a forger.
1.6
SCOPE
OF THE STUDY
This research is
designated to cover frauds in various kind of commercial banks, it prevention
and detection. It also covers the factors that may leads to fraud so that the
b