MANAGEMENT OF FRAUD IN THE NIGERIAN BANKING INDUSTRY: A CASE STUDY OF SOME SELECTED BANKS
MANAGEMENT OF FRAUD IN THE NIGERIAN BANKING INDUSTRY: A CASE STUDY OF SOME SELECTED BANKS
No Thumbnail Available
Date
1999
Authors
SANI, ILIASU I.
Journal Title
Journal ISSN
Volume Title
Publisher
Abstract
ABSTRACT
Recently, the incidence of frauds has got the attention of all and sundry and has
been the focus of government attention. The wave of this current happenings in the
financial sector, especially the banking sub-sector dictates a worrisome pace and makes
it an intractable problem of modern day banking, that our banking industry would finally
arrived at this impasse was a matter of time. Bombarded by inside abuse, outsider
scams, customer/worker collusion and immense wastage, this supposedly enduring edifice
built on assumed unwavering trust has gone through a chaotic metamorphosis in just
under a decade.
This study is an attempt to examine ways of arresting detecting, preventing and
controlling this cancer fraud in our banking system.
The study revealed that the most common types of reported fraud and forgery
cases during the 1997/1998 financial years were unauthorised overdraft, presentation of
forged cheques, posting of fictitious credits, suppression of cheques, fraudulent transfer
and withdrawals and abuse of medical scheme. It was also discovered that most fraud
cannot succeed without the active participation of bank employees. In 1998, 625 staff
of Insured Banks were involved in fraud and forgeries with clerks and cashiers
responsible for the highest number of reported cases, followed by supervisors and
managers.
To reduce the incidence of fraud in our banking system, it is recommended that
an effective management control system should be introduced into our banks, there
should be efficient system of record keeping with continuous internal audit and separation
of duties for the staff. Operational procedures must be strictly adhered to. Finally, the
detection, and prevention (management) of fraud should be a collaborative effort between
banks, their customers, the public and the government alongside relevant agencies.
Description
Department of Business Administration
Faculty of Administration
Ahmadu Bello University
Zaria.
Keywords
MANAGEMENT,, FRAUD,, NIGERIAN,, BANKING,, INDUSTRY,, CASE,, STUDY,, SELECTED,, BANKS.