1.There is a genuine fear that the increasing wave of bank fraud is causing a lot of havoc in our financial system. This is because the bank fraud has eaten deed into every aspect of the banking system to the extent that many banks have lost the confidence of their customers.
2.Fraud preventions are rules and regulations that have been developed to guide bank staff in their operations. It is assumed that if these rules are strictly followed, the chances of falling prey of fraudsters could be minimized.
3.It is very difficult to trace the origin of fraud. However in the cause of fraud perpetrations, Andrew (1990) defines that any minor mistake by an individual which is not detected in time or at all makes such an individual to think that the success of such mistakes may be taken advantage of and many proceed to enact more mistakes. This time, deliberate mistake is made and is successful. The individual takes benefit of it for selfish end. He refers to this behavior as fraud, since it is now a deliberate action aimed at dishonestly enriching the individual. The next logical step for such an individual is definitely to continue with such errors until he eventually graduates to a hardened fraudster.
4.Frauds in banks vary widely in nature, character and methods of operation. In general, fraud perpetrators, using different methods of fraud perpetration, can commit bank fraud. On the basis of perpetrators, bank fraud may be categorized into three groups:
Internal perpetrators of fraud relate to members of staff while external fraudsters are persons not connected with the bank. Mixed frauds are committed by outsiders in collusion with staff.
Shongotola (1994) cautions that the Nigerian banking industry has become not jus a battle front wit ha clear-cut firing line between banks and the fraudsters but a valuable mine-field in which some banks and their top management staff are in... [continues]
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