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Fraud is the number one enemy of the business world, No company is immune to it. It is in all walls of life. No where in fraud more serious than in banking it is the biggest single cause of banks failure.

       The intent of this research is to evaluate the fraud control techniques, the cause and effect of fraud. Two branches of first banks were used for the study on the understanding that first bank is a corporate entity has formulated and devised fraud control technique that is made applicable to all its branches throughout the country. The choice of first banks as a case study in based on the understanding that most banks in Nigeria have similar strength and weakness

       In penult of the above goal of the research, the researcher administered two type of questionnaire one to the top management of the banks and the other to the middle and lower management staff. Some customers were interviewed orally to obtain addition information and also to confirm the results obtained through the questionnaire.

       The responses form the questionnaire and interview were analyzed and interpreted. The results obtained were portrayed by means of pie chart, bar chart and table for simple understanding.

       Form the analysis and interpretation for the data the researcher found out that the fraud control techniques in use by commercial banks in Nigeria are not efficient and effective. Different types of fraud still exist, it is well noted that fraud as a concept is waxing in strength. It is becoming an expanding industry.  Based on these findings this research has made serious efforts to push back the frontier of human ignorance about fraud by suggesting new fraud control  techniques as to total eradication of fraud cannot be attained.





       In the history of banking in Nigeria, 200 banks were registered form the year 1920-1952, which was known as the era of free for all banking. Between this periods banking blossomed, in the first half of 1950,s the industry collapses and many banks folded up. The amount involved in frauds in commercial Banks alone rose to N1, 377 million. 1.5 million in 1993 where as the actual loss rose form N64.8 MILLION to N241.0 million.

       We are aware that frauds cut across all sectors of the economy and that the size of an enterprise usually determines the volume of fraud perpetrated. We are also aware of manpower and man power training, poor internal control system inadequate incentive and unsuitable legal frame work for dealing with offenders, playing the perpetration of frauds, contribute to the high rate of fraud in our banks.

       In addition to that, the lack of commitment on the part of staff and the employment policies of some banks tend to make frauds and forgeries attractive.

       Banks staff should be adequately remunerated to give their best while waiting with satisfaction. Poorly remuneration in a banking environment may constituted a menace to the system as temptation are likely to be quitted and the urge to succumb becomes irresistible.

       I believe that computerization can go a long was as a strategy for internal control in banking,  I therefore urge all banks to embrace and install computers in their organization. No effort should be spared in the fight against the hydra-headed phenomena in order to reduce to the barest minimum the crisis of confidence that frauds occasion.





In spite of efforts that have been made in the past, fraud in banks is still so recurrent in the head lines of our daily papers in such a profuse manner that they have ceased to be good captions on these papers, in going through papers one flips over pages with headlines of frauds. That not withstanding, fraud has effects on individuals and collectively. On the whole fraud had contributed to the liquidation of so many banks.

Many banks employees have been deprived of their benefits and in liquidation situation, total loss of their Jobs is the case, and the share holders of the banks loss their money.

       Along side the great role the banking industry play (which is being challenged by fraud through loss of found and liquidation of banks) with the degree of fraud observed now, if allowed to thrive without he development of new control techniques to prune down the accidence of fraud occurrences in the banking system. The future of the Nigerian economy is bound to fail.

       In recognition of the aforementioned facts then study intend to punch back the frontier of human ignorance (investigation) by evaluating the fraud control techniques employed by commercial banks in Nigeria. The effectiveness and efficiency of the Techniques will be looked at critical. Equally, the concepts of fraud, causes of fraud, types and effects of fraud will be viewed.



       The overall objective of this study is to evaluate the fraud control techniques of Nigerian commercial banks  the  subsidiary objectives are as follows. To determine the extend by which banks management intend to land fast or take to new fraud control of interest bank management put in handling cases of fraud.

2.    To determine the scope of fraud and those who are involved.



There is one major hypothesis that will from the root of this study, the finding will leave to acceptance or rejection to these hypothesis is null hypothesis (Ho) which will be rejected to accept the alternative hypothesis (Hi) for the purpose of this study, the under listed statement of hypothesis will be tasked.

i.            Null hypothesis (Ho): Fraud control techniques by first banks is not effective.. alternative hypothesis (Hi) fraud control techniques by first banks is effective.

ii.           Null hypothesis (Ho) Fraud in commercial banks account be eliminated. Alterative hypothesis (Hi) fraud in commercial banks can be eliminated.




The following research questions will guide their study

i.            Are fraud control techniques in use by commercial banks in Nigeria effective and efficient?

ii.           What are the causes of fraud in commercial banks?

iii.         What are the effects of fraud in commercial banks?

iv.         What steps can be taken to improve upon the fraud control techniques in use?

v.          Who are responsible for fraud commission in the banks?

vi.         Can the use of computer help in controlling fraud in the commercial banks?



       The scope of their research work covers all commercial banks, other bank related disciplines and companies. The scope is broad, only specific emphasis in made on commercial banks (using first Banks as a case study) subject to the fact that incidence of fraud is pronounced in commercial banks and as such enough revelation is made about the kinds of frauds carried out in commercial banks than other discipline this research work in being carried out in contemporary time.


       The intention of this research work is to help recognize the incidence or menace of fraud to a minimal level nearer to examination. Therefore, this research work will be of immense help to all commercial banks operating in Nigeria.

       Equally, it will be of great help to other discipline that have the need to control the incidence of fraud. The recommending and suggestions that were  made in this research if employed by commercial banks will help in controlling the menace of fraud. Also, this research work will be a great material to students, bankers that wish to conduct further study on fraud generally, or even as a division and limiting it to commercial and other banks and any other related discipline.



       Fraud: Fraud is defined, as the intentional, distortion of financial instrument such as the misappropriation of assets. The term fraud is used when it refers to irregularities involving criminal deception to obtain an illegal and unjust advantage. It may be perpetrated with the intention of making money or obtaining goods or it may be perpetuated when a person deceives others by pretending to have abilities or skills that he does not really have.

Control: This simply means to check or prevent to put to an end. Internal control are designed part to detect and control fraud. The management has a duty to ascertain the banning system of recording and processing transaction and assess it’s adequacy as a basis for the preparation of financial statement. In so doing, he will inevitably examine also the internal control since they are inextricably linked with the system of recording and processing.

Techniques: Techniques is the method or a way of doing something. In this respect techniques is the method of used in controlling fraud in the banks and other financial institution. The methods used by management to control fraud are stated below:

a.          Internal control: Inter control are designated in part to control fraud after detecting it

b.          By good organ gram: By good organ gram. Means a good chart, a good system of internal control.

c.           Impacting visit of both internal or external audition

d.          Motivation of the workers

e.          By punishing fraudsters


Commercial banks: Commercial banks are privately owned banks. They are established for the purpose of making profit for their owners. Commercial Banks accept deposit from the public and use their funds to lend at call and short notice to the discount market. To acquire treasuring bills, short and medium term government securities to invest in other financial institution and most importantly to the advance of their customer.


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    Project Details

    Department Accounting
    Project ID ACC0111
    Price N3000 ($14)
    CHAPTERS 5 Chapters
    No of Pages 128 Pages
    Methodology chi saqure
    Reference YES
    Format Microsoft Word