FRAUD AND FRAUD PREVENTION IN BANKS (A CASE STUDY OF UNITED BANK FOR AFRICA (UBA)


Content

 

 

ABSTRACT

This project work in basically an  empirical intended  to find how fraud  is being perpetrated in banks and how it can be prevented or rather eradicated from causing total collapse of banking sector and how this theory  can be influenced  through unscrupulous staff in banking sector  and members of the  public to achieve a specific results.

 

The primary data used in this project  was obtained through the use of questionnaires. The questionnaires were distributed to staff in various banking sector in Lagos. The question mainly focused on the  issue of fraud, the  causes, the people involved,  types, control or prevention of this cankerworm called Fraud.

The analysis of the data collected and the testing of the hypothesis revealed that the more swindle larger sums of money that the larger the organization is easier for it to believe that its internal control will protect it against fraud, that the longer the established organization and the more  crime free its experience.

 

TABLE OF CONTENT

Title page

Certification

Dedication

Acknowledgement

Abstract

Table of content

CHAPTER ONE

1.1      Introduction

1.2      A brief history  of UBC Plc

1.3      Statement of problems

1.4      Objective of the study

1.5      Significance of the study

1.6      General statement of hypothesis

1.7      Scope and limitation of the study

1.8      Definition of terms

 

CHAPTER TWO

 LITERATURE REVIEW

2.0      Introduction

2.1   Introduction

2.2      Fraud  in banks

2.3      How fraud are perpetrated

2.4      The effect of fraud

 

CHAPTER THREE

3.1      Types of fraud

3.2      The role of internal control

3.3      Factors that influence bank fraud

3.4      Fraud and its operation

3.5      How to detect fraud

3.6      The role of management in the  detection and control of fraud

 

CHAPTER FOUR

RESEARCH METHODOLOGY AND DESIGN

4.1      Research approach

4.2      Research strategies

4.3      Research  instrument

4.4      Types of research instrument 

4.5      Questionnaire

4.6      Enquiry

4.7      Interview

4.8      Sample size

 

CHAPTER FIVE

5.1      Summary

5.2      Conclusion

5.3      Recommendation

Bibliography

 

 


CHAPTER ONE

1.1   INTRODUCTION

The banking industry has witnesses a tremendous growth in recent time. This assertion is inform by the number of banks and branches. Their total investment the industry like any other one is faced with an arry of problems, one of these  is the issue of large scale of “fraud” while is perhaps very disastrous.

Incessant occurrence of fraud lead to loss of asset, the winding  up of an organization portrayal of dented image and  crippling of individual negating affected these devastating effects of frauds are more impant in banking sector than in any other industry.

 

Fraud has over taken different dimension and in creased unsophisticated application in the early years, banks were merely concerned with the forging of signature and falsification of records the types of highly sophisticated frauds we see today, were not found in 20-30 years ago but today, banks are concerned and carried about the “aids”  of banking sectors “ Advance fee fraud” popularly known as “419”.

 

The devastating effect of fraud on banks management the focusing of attention on fraud management so as to reduce the incidence and enhanced the early detection of already perpetrated frauds. Its should be noted that prevention is better than cure, banks need to  and should always find turn their respective fraud management strategies so as to make preventive measure receive property attention.

 

The incidence of fraud in the society and in financial institution in particular propels the ardent  need ad compelling  desire for prompt detection, prevention and control fraud is a societal phenomenon.

 

1.2   A BRIEF HISTORY OF U.B.A PLC

The united bank for Africa (UBA)is one of the Nigeria top three commercial banks.

Its was established in February 25, 1961 by a British and fraud bank limited with assets of over N15.685 billon  and over 190 branches speed over Nigeria.

 

The united bank for Africa is active in all aspects of commercial banking and provides international banking trusteeship, shares registration, corporate finance and computer.

 

1.3   STATEMENT OF PROBLEM

No fraud prevention and detection, however can itself guarantee  an efficient banking completeness and  accuracy of records, a fraud  error free society this is because of the  following:-

a.           Two or more dishonesty and unscrupulous person working in collusion can override the efficiency of the  best possible prevention.

b.          Fraud management control can be abused by those in whom authority is vested.

c.           Management is in position to override the fraud prevention set up by itself.

 

1.4   OBJECTIVE OF THE STUDY

The main objective of the study is to establish a reliable control system for the  detection and prevention of fraud. Loss of prevention simply put is to eliminate or to minimize the opportunity for an embezzlement having said that, the opportunity to commit a bank fraud    must be prevent and present before a fraud is committed. The best way to find answer to this situation is one how fraud can be  prevented is by uses of the  following basically concepts.

i.            What is fraud (definition of terms)

ii.          Major factors/ causes that influence bank fraud.

iii.        How does fraudsters perpetrate

iv.         Identifying groups of people involved in perpetrating

v.           The effects of fraud on the operation and cooperation image of the bank.

 

However, this research could be therefore be considered timely and most appropriate in the  in strest of banks in  particular and overall Nigeria economy in general.

 

1.5   SIGNIFICANCE OF STUDY

The salient points of this study lies in its attempt to find out and evaluate those factors responsible fro fraud prevention in the united  bank for Africa

i.            To guide bank having a weaker fraud management system to embark on effective fraud detection and prevention./

ii.          To  enable the researchable finding and to find out some problems encountered in relation  to fraud prevention in the  banking industry and make necessary recommendation for detection and prevention.

iii.        To save as a stepping stone for others who are likely to carry on research on the study in future.

 

1.6   GENERAL STATEMENT OF HYPOTHESIS

Here all and alternative hypothesis will be used for general statement of  hypothesis. The following are the  assuction of previous authors are deducted from review of relevant literature.

 

NO NUL HYPOTHESIS

HI ALTERATIVE HYPOTHESIS

1.

That the  and more  experienced banks are likely to swindle large sums of money

That the more experienced banker are not likely to swindle large.

2.

That better condition of services for bank staff reduces the risk of fraud to its. Minimized

That better condition of services for bank staff does reduce the risk of fraud to its minimum

3.

That the longer established the organization  and the more crime free its experience

That the longer established the organization and the less crime free ii experienced.

 

1.7   SCOPE AND LIMITATION OF STUDY

The concept  of fraud covers a wide scope in the economy of the  country. Its related to every malpractice conducted in all areas of business activities. The  cases of fraud are widely known in both the private of public sector  of the  economy.

 

The study will no be able to covers all area of fraud cases within the economy because of some constraints of limitation imposed by followings:

i.            Time constraints: This hinder the research to covers a work scope.

ii.          Cost of transportation due to an increase in truel price.

iii.        Geographical location of industries to covers is wide. Therefore concentration is purposed on UBA Lagos  branch.

iv.         The attitude of the respondents towards the  answering returning of questions.

 

1.8   DEFINITION OF TERMS

FRAUD:   Can be  describe as a  conscious preme dictated action of a  person or groups of person with the intention of altering. The truth and or facts for selfish personal monetary gain.

ERROR: This can be defined as unintentional mistation  of financial statements for whatever purpose and also as misappropriation of assets whether or not accompanies by distortions of  financial statements.

BOFIO: Bank and  other financial institution decree.

BANKER:- A person carrying on the  business of receiving monies and collection drafts for customers subjects to the obligations of honour time by the  drawn upon  them from time to time by the customers to the extents  of the  amount  available on their  current accounts.

BALANCE SHEET

It not an account but a statements showing the assets and  liability of a bank  or company or trader at a given time.

BANKING: Is the business of receiving money from outside sources as deposits irrespective of the payments of interest and the granting  of money loans and acceptance of credits or the purchase of bills and  cheques or the purchase of sales of securities for the account of other or the inquiring or the obligation to acquire   claims in respects of loans to their maturing or assumptions of guarantee and others warrantee for other or the  effecting  of starter and leaning  and such other.

 

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