In this study, the research set out to examine the roles of the
electronic Computers in fraud detection in banks. 51 staff of UBA plc is
randomly selected as the study sample for the research. These 51 staff was
issued with 51 copies of structured questionnaires to complete their responses to
the questionnaire were analyzed using percentage and chi-square test. Based on
the analyses, the researcher discovered the following facts and findings:-
i. The computer
had contributed immensely to the development of Nigeria banking industry some
of the recent developments in computer technology that had made positive impact
in the Nigeria banking industry include the following the automatic document
processor; magnetic ink character recognition, optical character recognition; automated
teller machine; electronic find transfer; and electronic fund transfer at the
point of sale.
electronic computers are used by the Nigeria banks to detail fraudulent
activities. Such as teaming and lading; foreign exchange fraud; forged bank
document and so on.
iii. The computers sometimes income errors whiles
doing the work of fraud direction in banks.
iv. The electronic Computers had revolutionalised
the banking industry, since they (the computer) quicker the banking processes;
reduces job / work stress; and brought professionalism in banks.
The researcher also made the following
(a) That all banks and other financial institutes in
Nigeria (including the Community banks and finance companies) should
computerize all their operations.
(b) That the Computers to be used by the bank and
other financial institutions in Nigeria should have an in- built fraud
(c) That the federal government should subsidize the
cost of electronic computer so as to make affordable by some banks that have
how asset 1 capital base e.g. the community banks.
TABLE OF CONTENT
1.1 Statement of the problem and objective of the
1.2 Rationale of the
1.3 Significance of the
1.4 Background of the
1.5 Definition of technical
2.1 Theoretical Review
2.2 Empirical Review
3.2 Research methodology
3.3 Sources of data.
3.4 Limitations of the
4.1 Presentation of Data
4.2 Analysis of
4.3 Discussion of the Results
1.1 PROBLEM IDENTIFICATION
Banks in Nigeria have been for quite some times the centre of
public attention especially in the area of fraud. Fraud here been on the
increase recent years. Although, fraud in the bank is a global phenomenon, the
growth in Nigeria had become out-standing.
In view of this fraudulent practice, computer should use to detect
and prevent fraud in the banking industries.
This study is therefore:-
(1) To highlight the types of bank fraud.
(2) To find out the possible way of detecting the
fraud in the bank by the use of computer.
(3) To find way of preventing of such fraud by the
RATIONAL OF STUDY
The function of the commercial banks is the extension of credit to
the Banking Industries. They are rendering a great social service through their
investment actions are expanded and a high standard e.g. living is realized.
The role of computers in fraud octoroon and prevention in the Nigeria Banking
industry is very important to the economy because it aids increased finance of
It is pentiment to research into the role of this fraud in banking
industries and suggest possible means of mitigating them.
SIGNIFICANCE OF THE STUDY
1. As the topic implies, laid on the problem of
fraud in which finally results in distressed banks. Significantly the study
exposed us to the fact that even computers can do better than human being when
it comes to detection of fraud.
2. The study will help the banker to be more
prudent in their dealing with the money deposited by their customers.
3. The study will also be of immense help to others
willing to carry out further research ch in in this area.
4. More over, the introduction of computer in the
banking industries, will help to discourage those who have the intention of
involving in fraudulent act.
5. The study will also benefit to banker and public
as it enlightens them on the fraud in banking industries.
6. The study also in partial fulfillment of the
award of Higher National Diploma in Banking and Finance.
1.4 BANK GROUND OF THE STUDY
I got much interest on this topic because of the fact that support
motto of the banking sector prudence and honesty has been, to a large extent
not up hold Today in banking sector, I find fraudulent workers, customers and
so, forth. These fraudulent practice end up making there banks distressed. No
where is fraud more serious then in banking it is there to biggest single cause
of bank failures. The magnitude of fraud is of course, not known because such
of it is undiscovered and undetected and not all that is detected is published.
More over, there fraudulent acts may not be successfully detected
with the aid for workers since some of those workers indulged in these
fraudatera not to disclose information that will held to detect the fraud But
with the banker to detect out the fraud, by so doing it will also help the
banker to prevent fraud in the banking industries.
But today computer has provide solutions to problems in all
sphere, being a handy tool for accomplishing most
tasks quickly and easily move with
the introduction of computer it has improved communication system and
automotive electronic gadgets into the banking system coupled with the various
precautionary measured taken by banks to prevent frauds in the banking system.
Fraud have rather taken inclear dimension and the size and sum involved
increased in geometric progression OLALEYE AMUPITAN (1981).
In his article “obstacles to growth of banking system saw that it
was discovered during investigation that it was discovered during investigation
that it was discovered during investigation that banks now take extra
precaution before clearing a cheque because of rampant incidence of fraud and
forgery, which banks loss placed on the exchange of N1.5
million per each working day, while ADEGBITES. (1996), in his own article the
cash economy phenomenon “also observed that fraud has became sophistication as
to make a forged cheque look good as in the original specimen.
Banks in a bid to reduce the size and rapidity to the occurrence of fraud in
their banks now take adequare precautionary measure by providing computer
machine to clear cheques drawn on their customers accounts.
FEMI ADEKAYE (1998), also in his article said that customers waste
a minimum of about two hours in the banking hall of Nigeria banks to cash their
own money. The checking process is long and by the time a cheque is cleared for
the cashier to pay the customer is frustrated and perhaps fast asleep. But with
aid of computer all these problems has come to an end.
COMPUTER AS A POWERFUL AND VERSATILE
It has a memory that enables it to recall past events and instructions.
It can store large volumes of data and information.
It can perform complex calculations to very high degrees of
It is generally very fast since it has very few moving parts.
As a result of all these I considered it worth while to involves
the use of computer in the detection and prevention of frauds in Nigeria
DEFINITION OF TERMS
Computer is a machine that accepts data, processes the data and
provides the result as information in the required from provided that
appropriate data is fed, into it. Essentially, computer is designed to perform
their three logic operation Viz; acceptance of data (input) processing of data
result production (out-put).
Fraud means receiving illegally in order to make money or obtain
goods. It can also be defined as a conscious or deliberate effort aimed at
obtaining unlawful financial advantage at the detriment of another person. This
lettered word “FRAUD” has been the Smanor cause of the ugly development in our
banks now, in the name of “DISTRIES” “DISTRESS”.
Software is defined as data, programmes, not formerly part of a computer but
used for its operation, it means anything that is not hardware such as
programmes language manual and documentation is also refers as structural
instruction resident in the computer which enable it to execute as a physical
devices that makes up the specific operation. Hardware: is defined as a
physical devices that makes up the computer system. Central processing unit. Is
the brain/heart of the computer, it is the controlling centre of the entire
data processing systems.
KEY BOARD. Is defined as input through which data and, intruction
are fed and received.
TERMS AND CONDITIONS APPLY
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