CHAPTER ONE

INTRODUCTION

 BACKGROUND OF THE STUDY.

Fraud has no definite accepted definition and it is limitless in classification. No wonder why house of Lord and writers of fraud always gives way from giving a decisive definition to it. But it is very important to look into other writers just to see how they give their own definition of fraud.

Oxford dictionary define fraud as the action or an instance of deceiving somebody in order to make more money or obtain goods illegally. Long-man dictionary also says that it is an act of deceitful behaviour for the purpose of gain which may be punishable by law. house of lords also says that it involves ‘all acts, commission and concealment which involves a breach of legal or equitable duty cost, or confidence, justly responded and are injurious to another or by which an undue influence or advantage is taken.J.C. Ezeh in his look principles and technique of auditing define fraud as an irregularities which is refers to intentional distortions of financial statements, of assets, which involve the use of criminal deception to obtain an unjust or illegal advantage.Bunon Fagbeni on citing the dictionary of Banking by feiry define fraud as “Act of depriving a person dishonestly of something which is his or would or might be, but for the perpetration of the fraud be entitled.

1.            Fatads M.A. Fraud, Banks way out of fraud daily time June 26 w986 p 13.

2.            Paul Proctor, fraud, long-man dictionary of contemporary English (Essence, England, long-man group ltd 1978) P. 441.

3.            Dennis Lane Mcdonel; John George Monroc, Kerr on the law of fraud and mistake (London sweet and Lexwell ltd. 1952) P. 1 –3)

4.            Bummi Fegbemi, fraud and the law, the Nierian Banker, Journal of the institute of Bank (Vol. 6 No. 1. 1990) P. 13.

 And also Dr. John Orji in his book element of Banking defined fraud as a conscious as deliberate effort aimed at the detriment of another person who is the rightful owner of the fund.

The fundamental of Banking industry in the current Nigerian economy can never been over emphasized. The banking industried, the central bank of Nigeria (CBN), the commercial banks, development banks, the merchant banks etc.Occupy and indispensable position in the economic activities of this country. They are the media of transactions between the user and owners of funds. They are the large pipe (conduct) though which all financial transaction pass. This financial intermediation of our Banking system has put it as a pirot upon which other business activities resolve. It is known that the economy depends solely on the effectiveness and efficiency of the Banking industry.However, fraud has firmly proved a very serious bottleneck to the proper functioning of the Banking role in the Nigerian economy with the name fraud people in due course may get worried and loose confidence in the Banking sector simply because of the rapid increase of the incidence.

Bank being a store house for public funds and properties should be built on trust and not on fraud.

STATEMENT OF THE STUDY

This research work is set to achieve the following objectives:

1. To verify why people involve in fraud.
2. To determine the ills the Banks have in relationship with the fraud and to what extent.
3. To diagnose the Banking procedure with a view to fight out loopholes inherent there and suggest ways of plugging them.
4. To determine or examine the various management and government efforts towards eliminating or checking fraud on the Banking industry.
5. To recommend solution(s) that may be helpful to the checking of the fraudulent activities in the Nigeria Banking industry.

SIGNIFICANCE OF THE STUDY

The topic “fraud elimination in Nigerian Banking Industries” is of significance to individuals, groups of individuals, schools, states and the Nation at large especially to the student of accountancy.

This is for the fact that the topic provides rooms for research work before students of accountancy throughout the federation and to any other related bodies on the techniques, they will have to apply while discharging their duties to achieve a lasting and desired end.