– Fraud in Banking Sector: Types, Causes, Preventive and Control Measures –
ABSTRACT
This is taken to analyze fraud and how it is committed by internal bank , external parties, or mixed parties, operating independently or in collusion with others. It examined the effects of fraud on https://studentsandscholarship.com/current-projects/fraud-in-banking-sector-types-causes-preventive-and-control-measures/banks and the entire financial system.
Certain methodology, research design, and strategy were adopted for the collection of primary and secondary data used in this research study.
Data analysis and presentation were carried out using Simple , Ordinary least square Regression analysis, and t-test distribution statistical analysis and table to test the validity of the formulated hypothesis.
It was found that there is no significant relationship between the size of fraud in the bank branches; also revealed is that there is no significant relationship between the Size/Amount of fraud in a bank and the ‘age’ of the https://studentsandscholarship.com/current-projects/fraud-in-banking-sector-types-causes-preventive-and-control-measures/banks in the banking sector.
The conventional fraud prevention, detection, and control techniques were found to be inadequate.
It was revealed that the banking system has been exposed to fraudulent activities due to avarice and bad management in such a way that confidence in the industry is in danger of being eroded.
The analysis of the types of fraud and forgeries perpetrated showed (that the commonest types were, falsification, forgeries https://studentsandscholarship.com/current-projects/fraud-in-banking-sector-types-causes-preventive-and-control-measures/embezzlement, suppression, theft, granting of illegal credits, and illegal withdrawals among others.
Following the above, constructive recommendations were advanced and suggestion for further research studies on certain areas was made.
TABLE OF CONTENTS
Title Page – – – – – – – – i
Certification- – – – – – – – ii
Dedication – – – – – – – – iiii
Acknowledgement — – – – – – – iv
Abstract – – – – – – – – v
Table of Content – – – – – – – vi
CHAPTER ONE
1.0 Introduction – – – – – – – 1
1.1 Background of study – – – – – – 1
1.2 Statement of problems – – – – – 6
1.3 Objective of the study – – – – – 7
1 .4 Significance of the study – – – – – 8
1.5 Research questions – – – – – – 9
1.6 Hypothesis of the Study – – – – – 10
1.7 Scope of the Study – – – – – – 13
1.8 L1mitiat1ons of the Study – – – – – 14
1.9 Definition of Terms – – – – – – 14
Reference – – – – – – – 16
CHAPTER TWO
2.0 Review of Related Literature – – – – 17
2.1 Introduction – – – – – – 17
2.2 General overview of fraud – – – – 18
2.2.1 Defining the concept – – – – – 18
2.3 Origin of fraud – – – – – – 20
2.4 Environment of bank management in Nigeria – 21
2.5 A survey of banking procedures – – – 28
2.5.1 The description of bank work procedure – – 28
2.5.2 Nature of bank fraud – – – – – 35
2.6 Types of bank fraud – – – – – 36
2.7 Other type of fraud as noted by Ovuakpore – – 41
2.7.1 Causes of bank fraud – – – – – 43
2.8 Institutional factors – – – – – 44
2.8.1 Environmental/societal/socio-economic factors – 49
2.9 Incidence and Type of Fraud And Forgeries Reported For The Period 2001-2011 – – – – 51
2 .10 Effects of Fraud on Banks – – – – 54
2.11 Prevent1on and Control of Bank Fraud – – 56
2.1 1.1 Fraud Prevention within a Bank – – – 57
2.11.2 Fraud prevention between two branches of the same bank – – – – – – – 60
2.11.3 Fraud prevention between two different https://studentsandscholarship.com/current-projects/fraud-in-banking-sector-types-causes-preventive-and-control-measures/banks – 62
2.11.4 Fraud prevention between a bank and central bank 63
2.11.5 Fraud prevention by customers – – – 64
2.12 Fraud management – – – – – 66
2.12.1 Direct confrontation – – – – – 66
2.12.2 Negotiation with the other Banks – – – 67
2.12.3 Committee of Chief Inspectors – – – 67
2.12.4 Legal Action – — – – – – 67
Reference – – – – – – 68
CHAPTER THREE
3.0 Research Methodology — – – – – 70
3.1 Research Design – – – – – – 70
3.2 Research Approach/Strategy – – – – 71
3.3 Study Population – – – – – – 71
3.4 Sample and Sampling Technique — – – 72
3.5 Sources of Data – – – – – – 73
3.5.1 Primary Sources of Data – – – – – 73
3.5.2 Secondary Sources of Data – – – – 74
3.6 Data Collection/Research Instrument – – – 74
3.6.1 Validity of Research Instrument – – – 75
3.7 Design and Administration of Questionnaires – 76
3.8 Method of Data Analysis – – – – 77
3.8.1 Formular for the Above Test Statistics – – 77
3.8,2 Ordinary Least Square Regressions Analysis – 77
3.8.3 Decision Rule – – – – – – 78
3.8.4 T-Test Statistic Model – – – – – 78
3.8.5 Decision Rule – – – – – – 77
3.9 Limitations of Methodology – – – – 79
Reference – – – – – – – 81
CHAPTER FOUR
4.0 Presentation, analysis and interpretation of data – 82
4.1 Data Presentation, Analysis and Discussions – 82
4.1.0 Presentation of Questionnaires Distributed — – 82
4.1.1 Analysis of Primary Data – – – – 83
CHAPTER FIVE
5.0 Summary of Findings, Conclusions and Recommendations 114
5.1 Summary of Major Findings – – – – – 114
5.2 Conclusions – – – – – – – 117
5.3 Recommendations – – – – – – – 119
Bibliography – – – – – – – 123
Questionnaires – – – – – – – 125
Appendix – – – – – – – – 133
INTRODUCTION
This project study is undertaken to critically evaluate frauds in the Banking sector; types causes and control measures. A case study of some selected https://studentsandscholarship.com/current-projects/fraud-in-banking-sector-types-causes-preventive-and-control-measures/banks in Metropolis. United Bank for Africa (), First Bank of Nigeria, Union Bank Plc, Bank, will be undertaken.
1.1. Background of Study
Since the Research study is on fraud in the banking sector, types, causes, preventive and control it will be worthwhile to start with the bank and its origin in Nigeria, before delving into the subject matter properly.
1.2 What is a Bank?
Lord Paget (1966:12) defined a bank or banker as a “corporation or person (or group of persons) who accept money on current https://studentsandscholarship.com/current-projects/fraud-in-banking-sector-types-causes-preventive-and-control-measures/accounts, paycheques drawn upon such https://studentsandscholarship.com/current-projects/fraud-in-banking-sector-types-causes-preventive-and-control-measures/accounts on demand and collect cheques for , that if such minimum services are afforded to all and sundry without the restriction of any kind.
The business is banking business, whether or not another business is under-taken at the same time” R.S Sayer (1979:1) in his own words defined https://studentsandscholarship.com/current-projects/fraud-in-banking-sector-types-causes-preventive-and-control-measures/banks as institutions whose debt usually referred to as bank deposits are commonly accepted in final settlement of other debts.
From the above, it could be inferred that before an institution is regarded as a bank, the principal aspect of its business must consist of receiving money for the credit of a current https://studentsandscholarship.com/current-projects/fraud-in-banking-sector-types-causes-preventive-and-control-measures/account, which the depositor could withdraw on demand by cheque.
BIBLIOGRAPHY
Adewunmi Wole (1986) “Fraud in Banks. An Overview in Wole Adewnmi Ed; fraud in Banks” (Nigerian Institute of Bankers) Lagos: Landmark Publication Ltd.
Aghedo, M. and Solomon (1998), Contemporary issues in Research Methodology, Lagos: NASFA.
Alashi, S.C. (2002) “Banking Crisis: Causes, early warning Signals and Resolutions” NDIC Quarterly December 2002, vol.12, no.4
Bandam, D.M. (1990), “Research Methods in Administrative Sciences”, Port Harcourt Beck: Publishers Ltd.
Bank Administration Institute (1989) ‘‘Fraud Prevention and Detection series” First National Bank of Chieago, U.S.A
CBN (1990) “Essential Theories and Classification of Fraud” paper presented by CBN fraud prevention course series, last Quarter, 1990
CBN (2006) “CBN Statistical Bulletin (Various Issues)”.