ABSTRACT
A
technique for automatically designing a fraud detection system using a series
of machine learning methods. Data mining and constructive induction are
combined with more standard machine learning techniques to design methods for
detecting fraudulent usage based on profiling customer behavior. Specifically,
a rule-learning is used to uncover indicators of fraudulent behavior from a
large user database. These indicators are used to create profilers, which then
serve as features to the fraud detection system that combines evidence from
multiple profilers to generate high-confidence intervention activities when the
system is deployed on-line with user data.
TABLE OF CONTENT
Title
page i
Approval
page ii
Dedication iii
Acknowledgement iv
Abstract v
Table
of content vi
Chapter
one
1.0 Introduction 1
- statement of the
problem 2
- Purpose of study 3
- Aims and
objective of the study 3
- Scope of study 4
- Constraints 4
- Assumptions 5
- Definition of
terms. 5
Chapter
two
Chapter
three
- Description and
analysis of the existing system 10
- Method of data
collection 11
- Objective of the
existing system 11
- Input/process/output
analysis 13
- Information flow
diagram 15
Chapter
four
Design
of new system 16
- Output
specification and design 16
- Input
specification and design 17
Chapter
five
5.0 Implementation 22
Chapter
six
Chapter
seven
Summary,
recommendation and conclusion 29
CHAPTER ONE
INTRODUCTION
Fraud is whenever form is limitless
in classification. This is the more reason why courts and writers on fraud
haven / ways sly away from giving it a particular definition last discuss it
under whatever form it prevent itself, so here, there has never been a single
definition of term fraud. Not with standing the varied meaning accepted to the
concept of financial fraud the concept of financial fraud the author address
the subject with following working condition.
Oxford
and charison dictionary simply define fraud as criminal deception. Act of
decisive trick, cheating swindling person on thing that dictionary defined
fraud as an act of deceitful behaviour for the purpose of gain which may be
perishable by law.
However
in the mind of civil court of justice fraud may be said to cover ill acts.
Commission and co concealment which involves a breach of legal or equitable
duty trust or confidence justly reposed and ingenious to another or by which in
undue advantage is taken of another.
Bunmi
Fagbemi 1990, while citing the dictionary of dictionary by penny, defined fraud
to mean an act or course of deception deliberately practiced to gain unlawful
or unfair advantage such deception directed to the detriment of another R.B
Awasanya widely see fraud any deliberate action in whatever form (writer,
spoken physical) designed to deprive a legitimate owners of his / her assets
properties or rights further more, osboni’s concise law dictionary say that
fraud is obtaining of a material advantage by unfair or wrongful means it
involves more obliquity.
Then
finally, Wole Adewumi describes financial fraud as a conscious premeditated
action of a person thus the intention of the monetary gain thus having closely
studies these perspective one may correctly see bank financial fraud a
deliberate act by individual or group of finding within or without the Nigeria
banking system to cheat deceive, swindle or manipulate in order to disposes the
banks depositor / shareholders of their fraud fund.
Therefore,
fraud or forgeries customer with a view to take benefit of the excess proceed
or the shortfall.
Despite
several definition of fraud, the author believes that one so far given are
rather appropriate. Adequate and inspiring for the purpose in which the
research work intend to achieve. This is because they contain the basic of
fraud which include that:
- There must be deceit or deception
directed to the detriment of another.
- A false representation has been made
knowingly or without believes in its truth or recklessly whether it is truth or
false.
- To obtain damage for deceit it must
be proved that the defendant intended that the plaintiff should act on it, and
suffered damages in consequence.
Thus
every act of unfair dealing whether against the back by its customer or by the
third parties, against the customer by the banks (including his officers) or
indeed against the bank by its officers really supposed to be included
financial fraud in our today’s banking system involves the use of deceit and
tricks and some times highly intelligent, cunning know – how the action usually
take the form of forgery, falsification of document and authority signatures
and outright theft.
A
fraudulent act without damage is not actionable but fraud is actionable if it
deals to any form of damage, which involves on gaining at the expenses of the
other.
The
position of banking system in our economy cannot be over emphasized. The
banking system houses the central bank of Nigeria (CBN), the commercial banks
the merchant bank and the development bank. At the end of March, their were
about eight five 85 licensed bank 35 merchant bank and 5 development bank.
These banks occupy an indispensable position in the financial system in
particular and in Nigeria economy as a whole.
Fraud
have been shown serious bottleneck in the proper dispensation of the Nigeria
bank roles and function to the nation the efficiency of banking system as
observed by the customer has been degenerated overtime. People are becoming to
get worried and sooner than late may lose confidence in our banks today fraud a
common phenomenal in bank has perpetrated an agonizing influence resulting in
loss of confidence and trust in our banks by depositor banks as the store house
of public / people fund should be built on trust not on fraud.
1.2 STATEMENT
OF PROBLEM
This research work seeks to identify
the three major problems confronting the banking system. These are the problem
of fraud, long queues and delay and high incidental expenses.
To
some banking experts, the issue of fraud is in intend in the Nigeria banking
system
The
argument on the is because as they contended that a good number of fraud occur
among out banks without the knowledge of the outsiders and even of where the
public is aware, fraud does not effect the mood at which customers withdraws
his deposited money and nor does it relate to long queues and delays.
These experts are inclined to believe this premises because that the nation is under banked, the populace are at no option to use the available banks even if there are glaring inefficiencies in their generation. The experts are of the view that the problem of long queues and long delay in banking halls always characterized the norm of Nigeria banking system other argue that long queues and delay are as a result of incompetence and business among some bank staff.
Another problem confronting our banks today is the high incidental expenses occurring as a result of amount spent on insurance premium paying action among the banks workers. In fact, the banking industries have had the largest number of strikes in recent years in each care, all the banks have lost their traditional, if not valued customers in the process entries and condition of service have been bought extra expenditure which have never thought of while preparing the budget for the fiscal year.
Fraud has been paralyzed the root of banking foundation, its base nad credibility just pick up a national daily enquire from police record and you will be surprise at the extent and magnitude of bank failure and fraud.
Today,
the disbursement mechanism function of our banking system has a lot of ditches
militating against its smooth operations
- PURPOSE OF STUDY
The research set out to achieve the
following objectives:
To determine if there are frauds in Nigeria banking industry
To determine the cause of fraud in the operation banks in Nigerian
To determine the effects of fraud in operation of bank in Nigeria
To diagnose the bank procedure with the intent of fishing out the loopholes inherent there in and suggest ways of filing them
To determine the various management and government control devices geared towards eliminating or checking financial fraud in out banking industry
To offer recommendation and solution that may help in preventing or at least reducing fraud in our banking industry
DESIGN AND IMPLEMENTATION OF THE DETECTION AND PREVENTION OF FINANCIAL FRAUD IN NIGERIA BANKING SYSTEM A CASE STUDY OF HARVARD TRUST BANK ENUGU
