BANKING AND FINANCE

FRAUD IN NIGERIA BANKING SYSTEM PROBLEM AND PROSPECTS

ABSTRACT

The issue of fraud has become a serious food for thought for many corporate bodies in recent times. In relation to financial transactions, fraud refers to deliberate and improper amendments and adjustment, or distortions and misrepresentation in vouchers, accounts and financial statements or to defalcate, misappropriation or other misconduct and to any loss arising there from. The issue of fraud and fraudulent practices in any organization should not be left lying low. The frequency with which it rear its ugly head in any establishment will determine the long term survival and growth of the company, and if not handled with care, can lead to corporate failure. Many of the banks licensed then are now distressed, some terminally. One of the many reasons that resulted in this situation is the volume of resources lost by the banking system to fraudsters. Fraud and irregularities have now become endemic in the banking industry leading to the collapse of some banks. It has therefore become necessary for government and institutions to put in place measures that will minimize the incidence of fraud in the industry. However, this research work is carried out with a view of assessing the causes, effect and control of fraud in Nigeria Banking System with reference to Afribank Nigeria Plc., (Offa Branch).