TABLE OF
CONTENT
Title
page
Certification
Dedication
Acknowledgement
Table of Content
CHAPTER ONE
1.0 Introduction
1.1 Statement
of the problem
1.2 Objectives
of the study
1.3 Research
hypothesis
1.4 Significance
of the study
1.5 Limitation
of the study
1.6 Definition
of terms
1.7 Plan
of the study
CHAPTER TWO
2.0 Literature
review
2.1 Definition
of fraud and internal control system
2.2 Types
of fraud and ways of defrauding banks
2.3 Causes
of bank fraud
2.4 Dimension
of fraud
2.5 Effect
of fraud in Access Bank
2.6 Measure
at fraud detection
2.7 Factors influencing the existence of fraud
in Access Bank
2.8 Managements responsibilities to wards fraud
prevention and detection
2.9 Extent
of fraud in Access Bank
2.10 Fraud
detection prevention and control
CHAPTER THREE
3.0 Research
methodology
3.1 Sources
of data
3.2 Method
of data collection
3.3 Method
of data analysis
3.4 Limitations
of methodology
CHAPTER FOUR
4.0 Data presentation, data analysis and
interpretation of results
4.1 Data
presentation
4.2 Data
analysis
4.3 Interpretation
of results
CHAPTER FIVE
5.0 Summary,
conclusion and recommendations
5.1 Summary
5.2 Conclusion
5.3 Recommendations
References
CHAPTER ONE
Banking was introduced into Nigeria by the colonial master in the 19th century by Elder Dampels Company after the failure at the bank system.
Between 1959 and 1993 many banks were established some operated while some collapsed because there were no specific laws, regulation the practice of banking. It was a “laisez fair” era dominated by the rules at thumb.
The first indigenous legislation enacted
to regulated bank business is the banking ordinance 1952 which introduce the
principle at bank licensing based on the fulfillment at certain condition such
as meeting the minimum capital and other specified requirement.
The level of fraud in the present day Nigeria has
assumed an epidemic dimension. It has eaten deep into every aspect of our life
to the extent that a three year old child talk about yahoo mail or 419 (advance
free fraud), newly discovered sobriquet for advance free fraud that is hunting
us as a nation. Nigeria
which all of its natural and human resources tether on the brink of destruction
because of fraud much of what we do is “cutting leaves” instead of dealing with
the root problem.
Generally, fraud takes its roots from the human heart. It is anoxia that the heart is deceitful adores all things and is desperately wicked fraud is the number one enemy of the business world, no company is commune to it and it’s in all work of life.
No area of the economy is immune from fraud, if nation checked might cause run on the banking sector.
1.1 STATEMENT OF THE RESEARCH WORK
Some of the various research questions
which this project attempts to derive an answer include:
- What can be said to the causes of the increasing rate of fraud in banks?
- What is the effect or damages fraud has caused banks her customers?
- What is the impact of internal control in the prevention and detection of fraud in banks?
- What are the classifications of fraud in banks?
- What are the types of banks common fraudulent practice?
- What are the factors influencing the existence of fraud in banks?
1.2 OBJECTIVES OF THE STUDY
The primary objective of this research
is to find practical means of minimizing the incidence of fraud in banks. To achieve
this objective the following secondary objective review existing literature
collects and collates information on fraud in banks.
- To identify various types of fraud perpetrated in banks.
- To identify the various means employed defrauding in bank
- To review existing literature, collect and collate information fraud in banks.
- To determine the effect of fraud on the business of banking
- To determine the magnitude and frequency of fraud in the banks.
- To recommend measures for reducing the identify mean through which the recommended measure can effectively be implemented.
1.3 RESEARCH HYPOTHESIS
Hypothesis tested: two hypotheses are
formulated and tested in this study.
Ho: The lack of a good internal control in snot a major cause of fraud in banks.
Hi:
The lack of a good internal control is a major cause of fraud in banks.
Ho: Banks with internal control system can not prevent the menace of fraud.
Hi: Banks with internal control system can prevent the menace of fraud.
1.4 SIGNIFICANCES OF THE STUDY
This research study makes great impact
to so many individuals and groups. They are as follows:
1- This
study helps in broaden the knowledge of both bank staffs and customers of the
banks.
2- Credit
standards influence the quality of the firms customers.
3- It helps to detect fraud in banks
4- It
helps to determine the effect of fraud on the business of banking.
5- It
assists banks and companies to safeguard against occupational fraud.
1.5 SCOPE OF THE STUDY
The content of this research should not
be seen as being totally exhausting of all possible situation available in the
Nigeria Banking sector and the theme of this study.
This is due to the vast size of the
banking sector and the boundless nature of the study under review.
Therefore, the scope of this research is
limited to the study carried out of access bank branches on the south part of Nigeria, particularly 50 selected branches is
the following state: EKITI, ONDO, OYO, OGUN, OSUN and LAGOS.
The study also focused on area relating to staff strength of banks size of deposit, size of loans and overdraft, ase of fraudster, year of banking experience of fraud and the means of fraud prevention and defect the punishment meted out of fraudster.
1.6 DEFINITION OF TERMS
1- Account-opening fraud: this
usually starts when a person not known a transaction account with false
identification but unknown to the bank. Such a person might use the account for
illegal transaction and close the account within a shore period.
2- Money transfer fraud: fraudulent
money transfer many result from a request created solely for the purpose of
commuting fraud or the alteration of a geniue funds transfer request a geniue
request can be altered by changing the beneficiary name or account number or
changing the amount of the transfer.
3- Computer fraud: its can take the
form of corrupting the grams and even breaking into the system via a remote
sensor by a computer programmer or specialist diskettes can also be tampered
with to gain access to authorized area or even given credit to any account for
which funds where not originally intended.
4- Loan fraud: it occurs when credit is extended to non-borrowing customers or to borrowing customers who lead exceeded his credit seeking the fraudulent aspect or this class is that there is intent to conceal it from the head office (inspectorate) staff on routine checks to device them with plausible but falsified statement, document e.t.c.
1.7 PLAN OF THE STUDY
The plan of the study is intended to
assist banks and company to safeguard against occupational fraud as it follows:
The first chapter contains the
introduction and the aspect of the study which reviews the statement of
research problem and the objective of the study, scope of the study; the
significance, definition and plan of the study were above review which stand as
the basic of the study.
The second chapter reviews the relevant
literature relating to various reform in the bank and its contribution towards
the development in Nigeria
banks and the role played by the case study and to the provision of the
benefit.
The third chapter is the research
methodology section which comprises of various ways been used in collecting
data and method of writing this project.
Chapter four is the sections which
prevents and analyze the data collection, four is the section various and means
stated in the previous chapters. The researcher used the descriptive method of
data analyzing presentation interpretation of result and frequencies are used
in calculating the percentage of the respondent to arrive at the state of the
study.
The final chapter containing the summary of the conclusion and recommendation at the end of this research the reference which contains some names of those who make impact and contribute towards the study.
THE EFFECT OF FRAUD IN THE NIGERIA BANKING SECTOR (A CASE STUDY OF INTERCONTINENTAL BANK PLC)
