FRAUD DETECTION AND PREVENTION IN FINANCIAL INSTITUTIONS (A Case Study of Access Bank of Nigeria Plc, Lagos Branch)


Content

 

 

 

TABLE OF CONTENTS

 

Cover Page

Title Page

Approval

Dedication

Acknowledgement

Table of Contents

Abstract

 

Chapter One

1.0    Introduction

1.1    Background of the Study

1.2    Statement of the Problem

1.3    Purpose of the Study

1.4    Significance of the Study

1.5    Assumptions of the Study

1.6    Research Questions

1.7    Scope/Delimitation of the Study 

1.8    Definition of Terms

 

Chapter Two

2.0       Review of Related Literature

2.1    Types of Bank Fraud in Access Bank of

Nigeria Plc, Lagos Branch 

2.2    Non-Management Fraud and Its Causes in

Access Bank of Nigeria Plc, Lagos Branch 

2.3       Computer Perpetrated Fraud in Access

Bank of Nigeria Plc, Lagos Branch 

2.4    Effects of Frauds on Financial Institutions and

The Economy

2.4.1  Fraud Detection and Prevention

2.4.2  Causes of Frauds

2.4.3  Classification of Banking Frauds

 

Chapter Three

3.0       Introduction

3.1    Design of the Study

3.2    Area of the Study

3.3    Population of the Study

3.4    Sample of the Study

3.5    Instrument for Data Collection

3.6    Validation of the Instrument

3.7    Distribution and Receival of Instrument

3.8    Method of Data Analysis

 

Chapter Four

4.0    Data Presentation and Analysis

4.1    Presentation of Tables

4.2    List of Findings

4.3    Discussion of Findings

 

Chapter Five

5.0    Summary, Conclusion and Recommendations

5.1    Summary of Findings

5.2    Conclusion

5.3    Recommendations

5.4    Limitations of the Study

5.5    Suggestions for Further Research

 

          References

          Appendix

          Appendix A:        Letter of Introduction

          Appendix B:        Questionnaire  

 

 

 

CHAPTER ONE

 

 

1.0   INTRODUCTION 

The cancan worm fraud’, is a deluding act of alteration and manipulation of financial documents in financial institutions (banks) and other business organisations, perpetrated (Banks) and other business organisations, perpetrated by fraudsters for egocentriction and personal aggrandizement” Alteration involves the changing, cancellation of written financial figures and replacing them with fabricated figures by the fraudsters.

 

In any economy where fraudsters exist and operate, such an economy with definitely experience low investment and profit by both home and foreign investors thereby leading to the under development of such an economy. However, the 47 years old “Nigeria” is currently rated as one of the most corrupt countries in the entire world due to the high rate of frauds operating in her economy.

 

1.1       BACKGROUND OF THE STUDY

Access Bank as it’s name implies offers both merchant and commercial banking services at Access, national and local communities. Internationally, the bank has a network of correspondent Banks located in U.S.A., Australia and Europe.

In Eastern Europe, it has four (4) branches namely: ANZ Access Bank in London, Swiz Access Citibank in New York and Mid-Land Access Bank London. These Banks speedily handle all foreign transactions by effecting foreign remittance through foreign exchange market (FEM) as well as opening and processing letters of credit within 48 hours of competitive exchange rate and receipt of documents respectively.

 

Nationally, with its establishment in Nigeria in August 1989 and it’s head office located at Access Plaza, Danmole Street, Off Adeola Odeku Victoria Island Lagos. Access Bank of Nigeria Plc, now has about 207 branches throughout Nigeria such as: Abuja, Kano, Onitsha, Asaba, Lagos, Aba, Akwa-Ibom, and Port Harcourt State etc.

 

Locally, out of 47 Local Government Area in Lagos State, Access Bank of Nigeria Plc has about 78 branches spread across the states.

 

1.2   STATEMENT OF THE PROBLEM

Generally, financial institutions (banks) have served as custodisurety and referees to different calibers of institution and individuals and as such maintained a prestigeous position in the society. But this prestigeous position occupied by financial institutions (banks) has been lost and being replaced by certain conspicuous detrimental and deceptive factor leading to the liquidation of financial institutions, including Access Bank of Nigeria Plc, Lagos Branch, in the economy. This deceptive and deluding factor is no other thing that “fraud”, which exist as a result of falsification of financial documents, direct cash thefts by both bankers and fraudulent customers, banking operators of electronic devices, forged cheques with forged signatures etc.

 

It was been observed that fraud is a cancarworm that has enter deep into the fabrics of financial institutions leaving them with insufficient liquidity to meet customers demand and reserve requirement by Central Bank of Nigeria, low investment and profit to be generated, loss of money belonging to customers and loss of good will and confidence in banks.

 

This evil known as fraud has penetrated into Access Bank of Nigeria Plc, Lagos Branch, and based on this, this research work has therefore summoned the courage of discovering the various ways of detecting and eschewing the different types of frauds that are existing in Access Bank of Nigeria Plc, Lagos Branch.

 

1.3   PURPOSE OF THE STUDY

The major purpose of this study is to determine the various ways of detecting and preventing the different types of frauds in financial institutions such as Access Bank of Nigeria Plc, Lagos Branch in order to ensure financial stability, transparency in banks operations and accurate financial records.

 

1.4   SIGNIFICANCE OF THE STUDY

The findings of this study will significantly contribute to the understanding of persons in financial institutions (Banks) and other business establishment, on the major measures of detecting fraud and irregularities also, major ways of preventing them. It is highly significant to the entire users of accounting information: shareholders, debenture holders, creditors, government, management and customers in order to know whether financial institutions including Access Bank of Nigeria Plc, Lagos Branch is adequately managed.  

 

Business owners are opportuned to acquire information on the enormous ways of detecting and avoiding fraud in their business operation, thereby leaving them with enough money to run their business successfully.

 

1.5   ASSUMPTION OF THE STUDY

The inherent assumptions of this study includes that fraud is a deceptive act perpetrated knowingly by fraudsters in financial institutions (banks) and other business establishment.

 

Fraud is a virus which has crippled financial institutions and other business organisation. It is believed that fraud can be eliminated entirely from financial institution including Access Bank of Nigeria Plc, and other business organisations through the use of major preventive measures such as the establishment of inspection units, retention of passport sized photographs, verification of signatures, placing lending limit, photographing persons withdrawing large sums of money and the use of close circuit television.

 

Generally with the knowledge of major measure of detecting and preventing frauds financial institutions include Access Bank of Nigeria Plc, and their business organisations will operate their business successfully.

 

1.6   RESEARCH QUESTIONS

This study sought answer to a well structure research question:

1.      What types of fraud usually occur in financial institutions including Access Bank of Nigeria Plc, Lagos Branch?

2.      What are the causes of fraud is it caused by the customer or staffs?

3.      Does the introduction of computer predominantly increases or decreases fraud in the banking business?

4.      Are there any mechanical devices used by management in detecting fraud in Access Bank of Nigeria Plc, Lagos Branch?

5.      What measures do the management use in preventing these frauds in Access Bank of Nigeria Plc, Lagos Branch?

6.      What are the effects of frauds in Access Bank of Nigeria Plc, Lagos Branch and other financial institution in general?

 


1.7   SCOPE/DELIMITATION OF THE STUDY 

The study is delimited to determine the various ways of detecting and preventing the different types of frauds militating against financial records in financial institutions including Access Bank of Nigeria Plc, Lagos Branch and other business organisations. It is focused on the types of frauds and their causes in conjunction with the perpetrators or fraudsters of fraud in financial institution and other business organisation. 

 

The study further looked on the effects of fraud in financial institutions and their business organisations. However, this study sought for ways of ensuring financial stability, transparency in bank operation and accurate financial records.

 

1.8       DEFINITION OF TERMS

1.           Auditor: This is an academically, professionally, qualified and competent individuals (employee) who utilizes a systematic process to access the validity of management financial reports of a firm with the primary aim of expressing his opinions in accordance with the laid down accounting professional bodies e.g. ICAN, NASB and Company and Allied Matters Act (CAMA) 1990 Standards, which various users of accounting information can rely on coupled with a secondary motive of providing domestic report for corrective measures and control.

2.           Bank: It can be defined as “the business of receiving deposits on current accounts, saving account or other similar account, paying or collecting cheques or such other business as the governor may, by order publish in the gazette, designate as banking business.

3.           Cheque: A cheque is a bill of exchange drawn on a banker payable on demand”.

4.           Computer: It is an electronic device which is capable of receiving data through the input device, processing the data and producing information through the output device for the end user.

5.           Fraud: Is a willful mis-representation of facts and figures with the intention to deceive.

6.           Internal Control: This is a collection of organisational policies, procedures, rules and regulations formulated by management to guide the performance of staffs and secure compliance with health standards. Thus, it employs administrative and financial control parameters to safeguard assets, promote efficiency, reduce waste, check fraud, establish acceptable and orderly manner of doing things within the organisation.

7.           Forged: This is the commonest source of raw perpetration of fraud in financial institutions. Here, the bankers within the company, having realized that there is a substantial amount of credit balances on the company’s accounts colluded with expert fraudsters and forged signatures of the directors or senior officers of the company responsible for effecting withdrawal or transfers of funds.

8.           Users of Accounting Information: This comprises legal and natural persons or groups who rely on published financial reports for various form of decision making concerning the reporting organisation. They include shareholders, debenture holders, potential investors, employees, creditors, government etc.

9.           Banking Operation: This can be defined as the way in which banking business works or operates.

10.       Letter of Credits: It is a written instrument issued by a bank at the request of it’s customer, in which the bank obligates itself to pay against presentation of a draft and documents which evidence shipment and meet all the terms and conditions stipulated in the credit.

11.       Fraudsters: These refers to those individual or group of individuals who have colluded to perpetrate the practice of fraud i.e. falsification of financial documents etc, in any organisation they found themselves.

12.       Egocentric: This term refers to the selfish act of an individual.

 


Order Complete Project