Detection and prevention of financial fraud in Nigeria banks

1.0 INTRODUCTION
1.1 BACKGROUND OF STUDY 
There has been no single accepted definition to the term “fraud”. Fraud in whatever forms is limitless on classification. This is why courts and writers on fraud shirk or try to escape away from giving a decisive definition. Notwithstanding, the varied meaning attached to the concept of financial fraud, the author addressed the subject with the following working definitions. Oxford and chamber dictionaries define fraud as a criminal deception, act of deceptive trick, cheating, swindling person or thing that decodes. Longman dictionary define fraud as “an act of deceitful behaviour for the purpose of gain which may be punishable by law”. In the mind of civil court of justice, fraud may be said to cover all acts, omission and concealments which involve a breach of legal or equitable duty, trust or confidence, justly reposed and injurious to another or by which an under influence or advantage is taken off. Bunmi Fagbenmi define banking fraud to mean an act or cause of deception deliberately practiced to gain unlawful or unfair advantage, such deception directed to the detriment of another. He goes further to define fraud to mean depriving a person dishonestly of something which his own. Having closely studied these approaches to definition of fraud especially from the banking perspective one may correctly see bank financial fraud as a deliberate act by an individual or group within or without the Nigeria banking system to cheat swindle, deceives or manipulates in order to disposes of their funds. Therefore fraud and forgeries in banking transaction can be perpetrated through falsification of entries in account of customers with a view to take advantage of the excess processed. Despite several definitions of frauds, the author believes that the ones so far given are rather appropriate, adequate, and inspiring for the purpose in which the research work intends to achieve. This is because. They contain the basic elements of fraud which include that:- (a) There must be deceit or deception directed to the detriment of another or entity. (b) A false representation has been made knowingly or without belief in its truth or recklessly, carelessly, whether it be true or false. (c) To obtain damages for deceit, it must be proved that the defendant intended that the plaintiff should act on it an suffered damages in consequence. The position of banking system in our economy cannot be over emphasized. They act as the “conduct pipe: through which all the financial transactions pass. However, fraud has proved a serious bottleneck to the proper functioning of the roles of the banking system to the Nigeria economy. People are beginning to get worried and sooner then later may loose confidence in our banking sector due to mainly the very increasing incidence of fraud in our today’s banks. Banks as the store house of the public funds and properties should be on trust not fraud. 1.2 STATEMENT OF PROBLEM The frequent case of financial fraud in many financial Institutions in our country is now taken as the utmost concern to financial experts and micro economists. This has also initiated the task of seeking solutions to eliminate its occurrences. To some banking experts, the issue of fraud is an internal vice in the Nigeria banking system. They argue on this because a good number of fraud occur among our banks without the knowledge of outsiders even where the public is aware it does not effect the rate at which customers withdraw or deposit money. These experts are inclined to believe this because the nation is under banked, the populace are at no option but to use the available banks like especially the foremost and well established bank like UBS PLC even if there are glaring inefficiencies in the operation in competence and laziness among most banks staff give birth to fraud. Fraud has paralyzed the roof, the foundation and credibility of our banking system. Just pick up any national daily or from police record and you will be alarmed at the extent and magnitudes of bank fraud in Nigeria banking system. Many banks have gone on distressed. Therefore the researcher is aiming at finding out if there is any significant effect or solution to financial fraud in Nigeria banking system which has to offer to these deficiencies aforementioned with special reference with UBA PLC station road, Enugu. In summary, the major problems of this study are follows:- (a) The incessant/consistent cases of financial fraud. (b) Inleakness this has attributed to banking industry prior to the introduction of effective control of financial fraud. 1.3

1.2 PURPOSE/OBJECTIVE OF THE STUDY 
This research work is general set towards ascertaining the effects financial fraud have had on the Nigeria banking system or banking industry since its inception in the Nigeria industry. Furthermore, the study is:- (i) To determine if any most of the bills the banking have in relationship with the financial fraud in banks and to what extent. (ii) To examine the facts contained in the detection and prevention of financial fraud issue. (iii) To research into the reasons why people involved in financial fraud. (iv) To examine the various management and government controlling devices geared towards eliminating or checking financial fraud in our banking system. (v) To diagonise the banking procedures with a view to fishing out loopholes inherent there in and suggesting ways of plugging them. (vi) To recommend solutions that may help in checking financial fraud in our banking system. (vii) To identify the problems banks face as a result of the introduction of financial fraud.

1.4 SIGNIFICANCE OF THE STUDY
This study isintended to highlight the indispensable position of an auditor and those concern to work in an available financial houses like banks. This project will equally be of immense help to other establishment and organization both in public and private sector. The dive need to establish a viable internal audit unit as a means of internal control should not be over emphasized. It is hoped that the management of UBA PLC Station Road, Enugu, in particular should use the audit department (i.e. audit department and inspection). This department being the watch – dog of banks should be given move teeth to bite than more banking prospective investors, promoter, shareholder would find this study very useful. This will serve as an eye opener to them on want it takes to invest in banks. This will also help readers and these who may wish to make reference on the topic of study may be while undertaking similar research work. Government agencies can install adequate internal control measures to avert the incessant frauds and embezzlement rampant in financial houses ministries and parastals today. They should be able to understand what is fraud and where to audit how and why auditing and internal control system is an invertable ambient of the business system.

1.5 LIMITATIONS OF THE STUDY 
This research work on detection and prevention of financial fraud is with a particular reference, for the banks to adopt some control measures to check the high incidence of fraud facing them in their operations. The following measure may be of help to the banks in fraud minimization. They should adopt constant and consistent inspections of bank operations. These inspections should be carried out by qualified and experienced bank inspectors and auditor.

Chapter two of this Detection And Prevention Of Financial Fraud In Nigeria Banks” research work is available. Order full work to download. Chapter Two of “Detection And Prevention Of Financial Fraud In Nigeria Banks Contains: Review Of Related Literature and Reference.

Chapter three of this Detection And Prevention Of Financial Fraud In Nigeria Banks” academic work is available. Order full work to download. Chapter Three of “Detection And Prevention Of Financial Fraud In Nigeria Banks Contains: Research Methodology, Research Design, Sources Of Data (Secondary Only), Location Of Data, Method Of Data Collecting and Reference.

Chapter four of this Detection And Prevention Of Financial Fraud In Nigeria Banks project work is available. Order full work to download. Chapter Four of Detection And Prevention Of Financial Fraud In Nigeria Banks Contains: Findings and Reference.

Chapter five of this Detection And Prevention Of Financial Fraud In Nigeria Banks material is available. Order full work to download. Chapter Five of Detection And Prevention Of Financial Fraud In Nigeria Banks Contains: Recommendation, Conclusion and Bibliography.