AN INVESTIGATION INTO THE strategies TO MINIMIZE FRAUD IN NIGERIAN COMMERCIAL BANKS
AN INVESTIGATION INTO THE STRATEGIES TO MINIMIZE FRAUD IN NIGERIAN COMMERCIAL BANKS
1.1 BACKGROUND OF THE STUDY
Since its inception and recognition, it has had a prominent position in Nigeria's life and sustainability. This is due to the fact that Nigerian banks have been disproportionately affected by bribery and other forms of dishonesty since the beginning of this sphere of economic and business awareness.
As well as the misappropriation of cash entrusted to one. Honest bank employees and students specialising in banking have been thinking about this issue and the probable near-future perfection in banking and finance as a discipline.
Fraudulent activity in Nigerian banks have intensified to the point that most banks are at significant risk of suffering losses that defy all current sophisms.
According to Potter (1974), the banking industry is the foundation of every industrialised and developing country on the planet. Therefore, it's crucial to spot any problems that could potentially influence particular industries.
Every foreign exchange transaction happens through a bank, and this determines how every economy in the world develops. Since banks are used for both industrial development and project funding, any good citizen of this magnificent country should be worried about eradicating bank fraud.
Fraud is an international deception with consent intended to persuade a mother to submit with any valuable items, money, or other properties that belong to him, or to surrender in general. Even though bank fraud is a common occurrence in our country.
It is alarming that “fraud is by far the most difficult problem to solve of all the different challenges that the Nigerian banking industry faces today.”(1985; Umoren)
The banking industry is more concerned with bribery due to the alleged detrimental impacts on both individual and institutional health. According to the Oxford Advanced Learner Dictionary of current English, the word “fraud” connotes fraudulent larceny.
This is a simple to grasp phrase. Fraud” is defined as “deception” in the great master lexicon Hamlin Encyclopaedia world dictionary as “a clever sharp practise or violation of trust by which anyone who tries to acquire an unjust or immoral benefit by some deceit artifice and trick.” (1974, Potter)
The term “fraud” can also be used in many different contexts. Any act, omission, or concealment that violates a legitimately reposed dusty confidence trust, is detrimental to another, or results in the taking of an unfair advantage of that person is considered “fraud” in the eyes of a civil court of justice.
Finally, according to Wale Adewuni, referenced in Umoren (1985), fraud is defined as an intentional, premeditated activity carried out by a person or group of individuals with the intention of manipulating the truth or the evidence in order to benefit themselves financially.
It calls for the use of deceit, treachery, and occasionally, exceptionally intelligent cunning and knowledge. This can result from a failure to strictly abide by already established rules and regulations in certain banks, which has greatly contributed to the rise in bank fraud, which is a really bad idea to suggest.
These skilled professionals frequently oversee the managerial tiers of these banks. These banks do not seem to organise fraud seeming to discuss the challenges fraud causes them and identify those that make fraud unavoidable in their banks,
as well as remedies to these problems, due to a lack of built-in accountability systems, such as routine auditing of consumer accounts. The hiring and training practises employed by the banks are ineffective.
1.2 STATEMENT OF THE PEOBLEM
This project's planned objective is to identify strategies for reducing fraud in Nigerian commercial banks, as fraud has been a significant factor in the country's bank failures. As this act threatens to damage people's confidence in the nation's financial institutions,
it is past time for us to examine fraud and how it might be minimised in Nigerian banks. At this point, it seems crucial to look for solutions to the problem that will end fraud in Nigerian banks. The enemy of the Nigerian financial sector is fraud, which is more prevalent in the banking sector than anywhere else.
Since fraud is the main reason for bank losses, a solution must be devised so that the success of Nigerian banks may be evaluated while fraud is reduced.
1.3 PURPOSE OF THE STUDY
To find out how widespread fraud is in Nigerian banks.
To investigate how fraudulent activity affects Nigerian banks.
To investigate key tactics for reducing fraud in Nigerian institutions.
1.4 RESEARCH QUESTIONS
What level of fraud are there in Nigerian banks?
What impact do fraudulent actions have on Nigerian banks?
What key tactics are necessary to reduce fraud in Nigerian banks?
1.5 RELATIONSHIP TO OTHER STUDIES
The study, which examines several methods for reducing fraud in Nigerian banks, would be essential to the relevant regulating authorities and various institutions in Nigeria. This study will be essential for other scholars who wish to extend the scope of it.
1.6 SCOPE OF THE STUDY
Only the necessary tactics for reducing fraud in Nigerian banks are covered in this paper. The study will continue to look into how widespread fraud is in Nigerian banks and how it affects those institutions.
1.7 limitations OF THE STUDY
The time and resources available for this study were insufficient. During the course of the investigation, the researcher lacked both time and resources.
1.8 OPERATIONAL DEFINITION OF TERMS
FRAUD: This term refers to any type of criminal fraud. Fraud is the deception used to obtain money. A fraud is a person who commits a fraudulent act.
A stain Bank is a business, individual, or group of individuals who accepts funds on current accounts, pays checks on such accounts upon demand, and collects checks for clients.
MINIMIZATION: reduction lowers something to its most basic form.
Large-scale fraud in banks: The Natural Concord, Vol. 6, No. 1614, Umoren, M.
P.E. Potter (1974). Bank: Cambridge, Massachusetts-based Hamlyn Encyclopaedia World Dictionary (Hamlyn Publishers Group Ltd.)