THE ROLE OF COMPUTERS IN FRAUD DETECTION AND PREVENTION IN THE NIGERIAN BANKING INDUSTRY

Abstract

This study is on the role of computers in fraud detection and prevention in the Nigerian banking industry. The total population for the study is 200 staff of CBN, Abuja. The researcher used questionnaires as the instrument for the data collection. Descriptive Survey research design was adopted for this study. A total of 133 respondents made human resource management, accountants, customer care officers and junior staff were used for the study. The data collected were presented in tables and analyzed using simple percentages and frequencies

 CHAPTER ONE

INTRODUCTION

• Background of the study

I got much interest on this topic because of the fact that support motto of the banking sector prudence and honesty has been, to a large extent not up hold today in banking sector, I find fraudulent workers, customers and so, forth. This fraudulent practice end up making their banks distressed. Nowhere is fraud more serious than in banking it is there to biggest single cause of bank failures. The magnitude of fraud is of course, not known because such of it is undiscovered and undetected and not all that is detected is published. Moreover, there fraudulent acts may not be successfully detected with the aid for workers since some of those workers indulged in these fraudatera not to disclose information that will held to detect the fraud But with the banker to detect out the fraud, by so doing it will also help the banker to prevent fraud in the banking industries. But today computer has provide solutions to problems in all sphere, being a handy tool for accomplishing most tasks        quickly and easily move with the introduction of computer it has improved communication system and automotive electronic gadgets into the banking system coupled with the various precautionary measured taken by banks to prevent frauds in the banking system. Fraud have rather taken in clear dimension and the size and sum involved increased in geometric progression OLALEYE AMUPITAN (1981). In his article “obstacles to growth of banking system saw that it was discovered during investigation that it was discovered during investigation that it was discovered during investigation that banks now take extra precaution before clearing a cheque because of rampant incidence of fraud and forgery, which banks loss placed on the exchange of N1.5 million per each working day, while ADEGBITES. (1996), in his own article the cash economy phenomenon “also observed that fraud has became sophistication as to make a forged cheque look good as in the original specimen.  Banks in a bid to reduce the size and rapidity to the occurrence of fraud in their banks now take adequare precautionary measure by providing computer machine to clear cheques drawn on their customer’s accounts. FEMI ADEKAYE (1998), also in his article said that customers waste a minimum of about two hours in the banking hall of Nigeria banks to cash their own money. The checking process is long and by the time a cheque is cleared for the cashier to pay the customer is frustrated and perhaps fast asleep. But with aid of computer all these problems has come to an end.

COMPUTER AS A POWERFUL AND VERSATILE MECHINE.

It has a memory that enables it to recall past events and instructions.

It can store large volumes of data and information.

It can perform complex calculations to very high degrees of accuracy.

It is generally very fast since it has very few moving parts.

As a result of all these I considered it worthwhile to involve the use of computer in the detection and prevention of frauds in Nigeria banking industry.