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PROJECT TOPIC:  OVERVIEW AND IMPACT OF FRAUDS IN THE BANKING INDUSTRY IN NIGERIA
Department:  Banking and Finance
AMOUNT:  10,000
FORMAT:   MS WORD
PAGES:  72
 
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1.2   STATEMENT OF THE PROBLEM

Banks generally have been experiencing fraud since its evolution. This affects the performance and the profitability of banks and may possibly lead to distress. The inability to identify the immediate and remote causes of continuous cases of bank frauds in virtually all banks in Nigeria is one of the problems brought to bare. Fraud is a major challenge to the entire banking industry; no bank is immune to it and in all facets of life (Olorunsegun, 2010). The banking public expects accountability, fairness, transparency in their day operation for effective intermediation. Though there were known cases of fraud in the sector, one major question still remain unanswered which is what is the nature and different ways through which fraud can be perpetuated in banks. It is asserted by Adeyemo (2012) that fraud in the bank is possible with corroboration of an insider. The banks are expected to ensure that they carry out their responsibilities with sincerity of purpose which is devoid of fraudulent practices. This is relevant if the banking sector is to gain public trust and goodwill. Another problem is that the government and its agencies have not put enough effort in the prevention and control of bank fraud in Nigeria; otherwise the level of bank fraud would have reduced to a bearable level. Agencies like money laundering Act which helps to place surveillance on any account through which such excess cash deposits or withdrawals are made, Nigeria Deposit Insurance Corporation which is involved in managing bank distress, failed banks and financial malpractices in banks Act which was vested with powers to recover the debts of failed banks, dishonored cheques Act which affects banks in their collection and payment of cheques on behalf of their customers and Bill of Exchange Act which helps to collect the proceeds of trade bills of exchange and cheques are not putting enough effort in the prevention and control of bank fraud that is the reason why bank fraud is increasing day by day in Nigeria. However, environmental or social factors pose a problem in the activities of banking industry as they contribute to bank fraud in Nigeria. Environmental factors are those that can be trace to the immediate and remote environment of the bank these factors are manifest in the following manner; the desire to get rich quick slow and complex legal process, poverty and the widening gap between the rich and the poor, competition among bank staff, the desire to belong to any social class, job insecurity, peer group pressure and societal expectations.

1.3 OBJECTIVES OF THE STUDY

The general objective of this study is toinvestigate the impact of frauds in the banking industry.

. Its specific objectives are;

1. To identify the causes of bank fraud in the banking industry.

2. To identify the forms of bank fraud in the banking industry.

3. To examine the efforts of government and its agencies in the prevention and control of bank fraud in the banking industry .

4. To examine the effect of bank fraud on the Nigerian economy

5. To determine the extent to which environmental or social factors contributed to bank fraud in the banking industry.

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