Effective Internal Control Of Frauds In Banks A Case Study Of Commercial And Merchant Banks In Nigeria

Having 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 were aware fraud in banking industry.
ii Fraud occurs mainly sometimes in the banking industry, Even though some respondent had other views on the regularity of bank frauds, yet a majority of then stated fraud occurs only sometimes in their bank. By this they may mean that they do not encounter fraud everyday or may be cases of fraud are not reported everyday but only sometimes.
iii.    Clerks and cashiers engage more in fraud than other categories of bank staff. About 40 respondents representing 50 present of the total respondents held his view and this was collaborated by data from NDIC Annual report  and statement of Accounts.
a. On the contrary however, the result of test one showed that instead of the clericals, management engages more in frauds than the clerks and casher
iv.    Majority of frauds have occurred within the past ten years in the banking industry. This fact was attested by 60 percent of the respondents of the sample.
v.    Seldom do managers collude with more than one category of staff to perpetrate fraud. According to the respondents, the managers also collude with some staff to perpetrate fraud but seldom, so they collude with many categories of staff to perpetrate fraud.
This may be fear of the leakage of the fraud with the consequent adverse circumstances.
vi In term of collusion to commit fraud, the clerks and cahiers category collude more with the messengers, drivers and cleaners category.
This view was held by more 55 percent of the respondents in the sample. Maybe because of the fact that the two categories perform the main jobs and hence are better able to collude or because of the fact the two categories perform maintain better rapport.
vii.    Very few cases of bank frauds occurred last year. The researcher found that that very few cases of banks fraud occurred last year. This was a very good development and one may attribute it to the fact that banks are trying to strengthen their internal control system. This also was attributed to control banks effort to bring the fraud stars to book.
viii.    Comparing the profit of banking before and after the frauds within the past ten years, their profits have shown a decrease:
Infarct about 54 respondents representing more than 67 percent responded that the profit of their bank before showed greatest amount of fraud, and within the year fraud showed a decrease. Only very few respondents replied that they have had an increase in profit.
ix.    Fraud has mainly accounted for the decline in the profits of banks.
Virtually all those who replied that fraud has mainly accounted for the fraud has the declined in profits were found to be those who earlier stated that they have had a decline in their profits. This points to the fact that frauds constitute one of the veritable sources of decline in profits.
x.    Commercial banks had more incidence of fraud than other categories of banks of the two categories of banks under study, commercial bank were found to have more incidence of fraud. This could be as a result of their age. The quality of staff and experience of their stuff.
Some of the commercial banks have been in existence for more than 50 years. Moreover most of these commercial banks that have existed for more than 30 years, who are being accused of practicing arm- chair banking prefer to employ inexpienced and unskilled staff. They would rather train them than employing skilled ones.