MANAGEMENT OF FRAUDS IN NIGERIAN COMMERCIAL BANKS: AN INVESTIGATION OF THE ROLE OF CBN

MANAGEMENT OF FRAUDS IN NIGERIAN COMMERCIAL BANKS: AN INVESTIGATION OF THE ROLE OF CBN

ABSTRACT

The research is on the management of fraud in Nigeria Commercial Banks. The main objective of the study is to identify the causes of fraud in commercial banks. The researcher analyzed the data collected based on the response from the questionnaires distributed

The major findings of the study are:

The causes of frauds in commercial bank includes
Poor management and poor security arrangement
Inadequate staff training
The various types of fraud in commercial banks include:
Loan fraud
Cheque fraud
Advance fee fraud. On the basis of the above findings, the study concludes that management of fraud in commercial banks is of the great importance and has a lot of benefit which includes given confidence to the bank customers that their money is safe, encouraging or attracting local or foreign investors. Based on the finding, it is recommended that:
Government should establish more anti-fraud and anti-corruption agencies to assist in sanitizing the Nigerian banking system.
Bank‟s management should employ strategies that will ensure early and prompt detection, prevention and control of fraud in commercial banks.

TABLE OF CONTENTS

Title Page………………………………………………………………..i

Approval page………………………………………………………….ii

Certification……………………………………………………………iii

Dedication………………………………………………………………iv

Acknowledgement……………………………………………………..v

Table of Content………………………………………………………vi

List of Tables………………………………………………………….vii

Abstract………………………………………………………………….v

Chapter One:

1.0 Introduction…………………………………………………….1

1.1 Background of the Study…………………………………….1

1.2 Statement of the Problem……………………………………2

1.3 Objectives of Study……………………………………………3

1.4 Research Questions…………………………………………..4

1.5 Research Hypotheses…………………………………………4

1.6 Significance of the Study…………………………………..5

1.7 Scope of the Study…………………………………………….6

1.8 Limitations of the Study……………………………………..6

1.9 Definitions of Terms…………………………………………..7

1.10: Historical background of CBN and Commercial Banks in Nigeria……………………………………………….9

References

CHAPTER TWO

2.0 Review of Related Literature……………………………….12

2.1 Origin of Fraud………………………………………………..12

2.2 What is Fraud?……………………………………………………………………………………………………… 12

2.3 What is Bank Fraud?………………………………………………………………………………………. 15

2.4 Nature and Types of Bank Frauds………………………….16

2.5 major Causes of Fraud in the Commercial Banks………26

2.6 Implications of Fraud on the Bank and Entire Economy of Nigeria……………………………………………34

2.7 Punishment and Penalties to fraud Perpetrators………..37

2.8 Fraud Detection, Prevention and Control…………………40

2.9 CBN Effort to Fraud Control………………………………….9

2.10 Extent of Fraud of Banks…………………………………….59

References

Chapter Three

3.0 Research Methodology……………………………………….63

3.1 Area of the Study……………………………………………..63

3.2 Sources of Data……………………………………………….63

3.3 Population of Study………………………………………….64

3.4 Sample Size Determination………………………………..64

3.5 Instrument used for Data Collection ……………………67

3.6 method of Data Analysis……………………………………68

MANAGEMENT OF FRAUDS IN NIGERIAN COMMERCIAL BANKS: AN INVESTIGATION OF THE ROLE OF CBN