Analysis of the Causes and Measures of Curbing Fraud in the Banking Sector

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ANALYSIS OF THE CAUSES AND MEASURES OF CURBING FRAUD IN THE BANKING SECTOR.

BY

ESSIEN NSIKAK U.

A RESEARCH PROJECT SUBMITED TO
THE DEPARTMENT OF ACCOUNTING, COLLEGE OF BUSINESS AND SOCIAL SCIENCES, COVENANT UNIVERSITY, OTA. IN PARTIAL FULFILMENT OF THE REQUIREMENT FOR THE AWARD OF BACHELOR OF SCIENCE (B.sc) DEGREE IN ACCOUNTING.

CERTIFICATION
I certify that this project titled “The Analysis of the causes and measures of curbing fraud in the banking sector” was carried out by ESSIEN, Nsikak U. (05AA01752) under my supervision and is found to be adequate in scope for the requirement of a Bachelor of Science Degree in Accounting.

_______________________________________________
MRS. B. UMORENSignature and Date
Supervisor

______________________________________________
DR. E. P. ENYISignature and Date
Head of Department

DEDICATION
This project work is dedicated to the Lord in Heaven who saw me through the compilation of the work from the beginning to the very end.

ACKNOWLEDGEMENTS
First and foremost, I would like to appreciate my Father in Heaven by whose grace this research work is completed. It is through His mercies and love that I was able to acquire every resource that was useful in the compilation of this work. I would also like to acknowledge my beloved parents, Maj.Gen. and Dr.(Mrs.) U.S. Essien for their tireless efforts to put me where I am today. They gave me their total support and assisted me every inch of the way. The effort of my lovely supervisor, Mrs. B. Umoren, is also specially appreciated. I obtained useful advice from her and she took time to make appropriate corrections to ensure that my research work measured up to the required standard. I also want to appreciate my siblings, Iniobong, Enoobong and Itoroobong for their moral support and care throughout the period it took me to complete this research work. I want to also use this medium to acknowledge every single person that was instrumental to the completion of this project in one way or the other especially my friends who stood by me the whole time. Ajiri Omoghene, Oladele Abiodun, Uche Ekeanyanwu, IK Agu, Chido Greg, Egbedeyi Olamide, Adeyemo Benjamin, Michael Badiru, Israel Ogunsanya, Harry Obehi, Clarence Seedorf are deeply appreciated.

ABSTRACT
Nigeria has over the years experienced an increase in the rate of fraudulent activities in the banking sector of the economy. The issue of fraud in the Nigerian banking sector is prevalent and not easily managed. Fraud is deep rooted in the social setting and the extent of growth depends on the wrong sense of value Nigerians choose to cultivate in terms of wealth acquisition. Therefore, the intense natural inclination to defraud of the ordinary Nigerian is the direct product of our materialistic society. The banks are merely a reflection of the society in which they operate. This research work “Analysis of the Causes and Measures of Curbing Fraud in the Banking Sector” aims at the examination of the causes of fraud in the Nigerian banking Sector, identify the control measures taken to curb fraud and examine if these measures are effective. This research work is carried out so that problems like the high rate of fraud, financial crimes and other related crimes that are eating deep into the fabric of the banking industry can be solved. A random sample of banking sector entities was taken and a few of these entities picked as sample to represent the population which is the banking sector of Nigeria. Data was collected by means of questionnaires which were administered to the working staff of First Bank Nigeria, Equatorial Trust Bank, and Oceanic Bank. The data collected was analyzed and the hypotheses formulated were tested using T- distribution or T-test. Eventually, from the comprehensive study carried out, it was found out that weaknesses in the control system is a major cause of fraud in banks, fraud...
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