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Effective Internal Control Of Frauds In Banks A Case Study Of Commercial And Merchant Banks In Nigeria
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(i) Marine Frauds; cuttled ships, vanishing cargoes marine thefts, charter party swindles.
(ii) Documentary Frauds: Related to marine frauds, eg falsification of bills of lading, letters of credit etc.
(iii) Stock Exchange fraud Manipulating market to influence prices, insider trading, over the counter frauds etc.
(iv) Advance fee frauds. Fraudsters purporting to operate brokers, collect advances or commissions and vanish.
(v) Discounting
or factoring frauds; Fraudsters purporting to operatebusiness and vanishing with funds so obtained from banks or the funding source.
(vi) Bankruptcy Frauds; Business operate on basis of funds
obtained with no prospect or intention to repay. When pushed, goes into liquidation and re-emerges and re- emerges, trading in another name.
Femi Adekanye (1986) has identified the types of fraud to include.
A. Forged cheques; These are by far one of the most common source of loss to the banks and their customers. They are often perpetrated by bank staff and are mainly company accounts. Dishonest company staff colludes with bank staff to commit such fraud.
(b.) Cash fraud: Lodgments made by customers can be intercepted by dishonest bank staff and diverted to their own private purse.
c. spurious letters of credit; letters of credit are used for international transactions, Dishonest businessmen sometimes send spurious letters of credit such letters of credit are usually sent along with spurious : bank drafts to their oversea exporters could indulge in kitting. To successfully do this, a person must be operating more than one bank account in two or more banks. Kitting enables the of bank funds with proper include.
- consistent increase in deposit account.
- Excessive account activity in relation to type of account with consistent low daily balance.
- Depositors’ unusual concern with daily state of balance.
- A pattern of daily deposits made to cover cheques received for payment on the current day.
- Frequent purchase of chahier’s cheques or bankdrafts in favour of the customer, bank.
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ABSRACT - [ Total Page(s): 1 ]ABSTRACTEver since banking evolved, banks have come to be seen as one of the few places where one’s treasures can be kept without fear of theft. As a result bankers all over the world were and still are seen as repositories of trust and fidelity.However, in the recent past, the integrity of bankers and the banking industry in Nigeria have come into question. An epidemic called fraud has hit the banking industry. This fraud has led to the loss of confidence by the public in banking institu ... Continue reading---
APPENDIX A - [ Total Page(s): 1 ]APPENDIX IICOMPUTATIONS FOR HYPOTHESIS ONEThe profit of your bank before this particular period as in (4) as compared with that of the period, did it show(a) An increase? (b) Economic Recession(c) Others (specify) (d) Don’t knowFrom experience, what type of bank has more incidence of fraud?(a) Commercial Bank (b) Merchant Banks(c) Development banksState why brieflyDo you have an internal control system in your bank?(a) Yes effective (b ... Continue reading---
QUESTIONNAIRE - [ Total Page(s): 1 ]QUESTIONNAIREHave you ever learnt of fraud in the banking industry?(a) Yes(b) No(c) Don’t knowHow regular have you had cases of and in our bank?(a) Always(b) Fairly always(c ) Sometime(d) Seldom (e) Not at allFrom your experience, which category of employees engage, more in fraud?(a) Management (b) Supervisors(c) Clerks and Cashiers (d) Messengers, Drivers etc.In your own opinion, do you think that fraud in your bank is usually a ... Continue reading---
APPENDIX C - [ Total Page(s): 2 ]APPENDIX 4COMPUTATIONS FOR HYPOTHESIS THREE ... Continue reading---
APPENDIX B - [ Total Page(s): 2 ] ... Continue reading---
LIST OF TABLES - [ Total Page(s): 1 ]LIST OF TABLE PAGE2.1. Returns of commercial banks on frauds and forgeries, 1989.2.2. Return of merchant Banks on frauds and forgeries, 1989.2.3. Return of all banks on frauds and forgeries, 19892.4. Number of commercial banks operating in Nigeria as at Dec. 1994.2.5. Number of merchant banks operating in Nigeria as Dec. 19942.6. Typology of frauds3.1. Failed banks in as at 19943.2. Response rate to questionnaire4.1. Knowledge of frauds ... Continue reading---
LIST OF FIGURES - [ Total Page(s): 1 ]LIST OF FIGURES4.1. Regularity of Bank frauds4.2. Category of staff engaging more in frauds4.3. Effect of fraud on profit of banks4.4. Effectiveness of internal control systems in banks4.5. Effectiveness of respondents bank with other banks. ... Continue reading---
APPENDIX D - [ Total Page(s): 2 ]APPENDIX 5COMPUTATION FOR HYPOTHESIS FOUR ... Continue reading---
TABLE OF CONTENTS - [ Total Page(s): 1 ]TABLE OF CONTENTPageTitle page Certification Dedication Acknowledgment Abstract Table of content List of table CHAPTER ONE1.1. Introduction 1.2. Statement of problems 1.3. Objective of the study 1.4. Hypothesis 1.5. Significance of study 1.6. Limitations and scope of study CHAPTER TWO2.0. Literature review 2.1. Restatement of the study 2.2. Meani ... Continue reading---
VITA - [ Total Page(s): 1 ]VITADIMEJESI, TIM IFESINACHI was born to Mr. and Mrs. Okpalanozie Dimejesi hail from Uga in Aguata Local Government Area of Anambra State. Being one of the nine surviving children of the family, he was born after the Nigeria civil war in Uga in Aguata Local Government Area Anambra State in 1993.Dimejesi Tim Ifesinachi was employed in Union Bank of Nigeria in 1984 as a clerk and after a year with them, he got admitted into the University while in School, he had done his industrial training progra ... Continue reading---
CHAPTER ONE - [ Total Page(s): 2 ]CHAPTER ONE1.1. INTRODUCTIONBanks, especially commercial banks, are the major mobilizers of saving in any economic system by offering savings facilities to the public. Some of the functions of the banks include the acceptance of deposits from the public and channeling such deposits to the deficit sectors of the economy who are in need of inventible funds. These two related and dependent functions bring the banks face to face with the public who come to obtain their services. This implies t ... Continue reading---
CHAPTER THREE - [ Total Page(s): 2 ]3.4. VALIDITY AND RELIABILITY OF MEASURING INSTRUMENTSValidity of a measuring instrument refers to the degree to which an instrument (test) measures what it is supposed to measure, while reliability refers to the degree to which an instrument (test) consistently measure what it is supposed to measure.In the present study, both validity and rdlianility of the measuring instruments have been ensured.1. The questions contained in the questionnaire have been structured to elicit the exac ... Continue reading---
CHAPTER FOUR - [ Total Page(s): 15 ]We can represent this data in a pie chart as shown below: Figure 4.3 category of staff congaing more inForm the above data, most of the respondents were of the view that clerks and cashiers were the category most prone to engage in fraud. This is not surprising because the cashiers for instance, handle raw cash over the counter and the temptation to commit fraud will come to them more than other that deal with ordinary papers. Furthermore, for the fact that a majority of people in their cadre re ... Continue reading---
CHAPTER FIVE - [ Total Page(s): 3 ]CHAPTER FIVE5.0 FINDINGS RECOMMENDATIONS AND CONCLUSION5.1 FINDINGSHaving collected and analyzed data pertaining to the present study, the researcher found the following:i. Fraud is know to all banks in the banking industry of Nigeria, as earlier stated in the literature review, fraud is universal as cases of it are reported in almost all fields of human endeavour. Thus, the researcher was not surprised that when it was found that all the respondents that answered the questionnaire w ... Continue reading---
REFRENCES - [ Total Page(s): 2 ]REFERENCES1. Prof G.O Nwankwo Bank management principles and practice (Matt house pushing UK limited 1991)2. Achebe C. the trouble with Nigeria.3. Fourth Dimension publishing company, Enugu, 1985,4. Adegbite S.I Fraud in Banks†Nigeria institute of Banker (landmark publications Lagos 1986)5. Adekanye F. “fraud in Banking transactions. The Nigerian Bank Vol. 6 No 1 19866. Ademji O.A the law and practice of banking in Nigeria (University of life pres ... Continue reading---
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ABSRACT - [ Total Page(s): 1 ]ABSTRACTEver since banking evolved, banks have come to be seen as one of the few places where one’s treasures can be kept without fear of theft. As a result bankers all over the world were and still are seen as repositories of trust and fidelity.However, in the recent past, the integrity of bankers and the banking industry in Nigeria have come into question. An epidemic called fraud has hit the banking industry. This fraud has led to the loss of confidence by the public in banking institu ... Continue reading---