This research essentially focused on the role of ICT in fraud
detection in the Nigerian Banking industry. This research work was done
through inferential statistics which helped the research to generalize and draw
conclusion. The instrument of data used in the process of this research work
was questionnaires approach which was subjected to analysis in tabular
form. The target population for the research was the banking sector but
the accessible population open to researcher was First Bank, Union
Zenith, Access banks Anambra whose staff and customer formed the respondents
from whom the information obtained were analyzed using X2 statistical
tool. The result of revealed that new generation banks in Nigeria were
more responsible to modern technology than the old generation banks whose
methods of operation were resistant to changes. In addition to this
development, the regulatory agencies were not helping matters over their
supervising role relating to banking system. The monitory groups of the
regulatory agencies were not effective, in the system, leading to flowing of
roles and regulations put in place. The government should throw its
weight in ensuring that the recapitalization exercise is consolidated by
regular monitoring of the operations of the banks to ensure that they operate
in line with international best practices.
1.1 Background of the
1.2 Statement of
1.3 Objectives of the study
1.5 Research Questions
and Limitation of the Study
2.1 Review of Related
2.2 Types and Causes of Bank Fraud
2.3 Effects of Frauds on Nigeria Banks
2.4 Control of Fraud in Banks
2.5 Concepts of Information and Communication
2.6 ICT and Nigeria Banking Industries
2.7 ICT Infrastructure Used by Banks
2.8 Effects of ICT on Banking Industry
3.1 Research Methodology and Design
3.2 Population of the Study
3.3 Sample and Sampling
3.4 Sources of
3.5 Methods for Data Collection
3.6 Procedures for Data Analysis
Data Presentation, Analysis and Interpretation
4.1 Data Analysis
4.2 Test of Hypothesis
Summary of Finding, Conclusion and Recommendation
5.1 Summary of Findings
1.1 Background Of The Study
Today’s business environment is very dynamic and under goes rapid
changes as a result of technological innovation, increased awareness and
demands from customers.
especially the banking industry of the 21st century
operators in a complex and competitive environment characterized by these
changing conditions and highly unpredictable economic climate information and
Communication Technology (ICT) is at the centre of this changes curve.
Laudon and Laudon, (1991) contend that managers cannot ignore information
system because they play a critical role in contemporary organization.
That point that the entire cash flow of most fortune 500 companies is limited
to information system.
The application of
information and communication Technology concept, techniques, policies and
implementation strategies of banking services has become a subject of
fundamental importance and concerns to all banks and indeed a prereavisible for
local and global competitiveness (ICT) directly affects how managers decides,
how they plan and what products and services ware offered in the banking
industry. It has continued to change the way banks and their corporate
relationship are organized worldwide and the variety of inactive devices
available to enhance the speed and quality of services delivery.
Harold and Jaff (1995),
contend that financial services provide should modify their traditional
operating practices to remain viable in the 1990’s and decades that
follows. They claims the most significant shortcoming in the banking
industry today is a wide spread failure on the part of senior management is
banks to grasp the importance of technology and incorporate it into strategic
Weherem (2000) claimed
that only banks that over haul the whole of the payment and delivery systems
and prosper in the new delivery system in order to properly position them
within the framework of the dynamism of information and communication
technology. The banking industry in Nigeria has witnessed tremendous
changes linked with the development in ICT over the years.
The question for
survival, global maintenance of existing market share sustainable development
has made exploitation of advantages of ICT through the use of automated device
imperative in the industry.
This study evaluate the
response, of Nigeria banks to this new trend and examines the extent to which
they have adopted innorative technologies in their operation and the resultant
1.2 Statements of the
Information and Communication Technology (ICT) is progressively
reducing the significance of other factors of production through ICT it is now
possible for countries to trade without border restrictions. Therefore as
a result of anchoring their operations on (ICT) based delivery system the banks
with ICT services have become more profitable.
Though the advantages
and opportunities that ICT offers are very great, but this is not without some
challenges fraud can likely occur more seriously in financial industry
(banking) since large amount may be easier to operate electronically than the
manual operation fraudster can beat various security codes through fraud can be
greatly minimized, but there could still be some element of dishonest act.
Moreover, another area
in which the adoption of information technology has negatively affected the
banking sector is the threat it poses for the employees in the sector.
According to Jaffer (1968), he ascertained that “unemployment is cyclical
phenomenon technological progress may take for short problems of unemployment
which rescure time for adjustment because of unmobility of capital and labour.”
According to an
official of National Union of Banks, Insurance Finance Institution Employee
(NUBIFIE) one of the greatest achievements of the group before the adoption of
information technology in banks was the security and guarantee of employment
for the members. In the words for Ibrahim (1998), he stated that (ICT) was
adopted in bank without any notice without any plan for the future existence of
the displaced employees without rehabilitation plan and benefits.
1.3 Objective of the
Information and Communication Technology (ICT) increasing, this
sort of ICT is vital to the banking industry because it allows holders to do
banking online as well as contact customer services support team member from
mobile communication devices, or their home computers the objective of the
study will be:
i. To identify possible defects and loopholes (if
any) in the banking system
ii. To reveal the need for (ICT) in fraud detection
and prevention in Nigeria banking industry.
iii. To reveal the usefulness and consequences of
(ICT) to the Nigeria banking system.
iv. To offer useful recommendation based on the
findings on how best to prevent the occurrence of fraud through an effective
information and communication technology.
1.4 Research Hypothesis
The modern world scientific observations and investigations helps
us to eliminate greater risk of uncertainties in this research. There are
two (2) major school of thought with three (3) alternatives hypothesis as a
trend to solution of this research problem.
1. H0: The
present ICT in the Nigerian banking industry
is not effective in fraud detection and prevention.
present ICT in the Nigerian banking industry
is effective in fraud detection and prevention.
2. H0: The
present ICT does not proffer possible solution to defects and loopholes in the
Nigeria Banking Industry.
present ICT proffer possible solution to defects and loopholes in the Nigeria
3. H0 The
present ICT does not prevent the occurrence of fraud in Nigeria banking
present ICT does not prevent the occurrence of
in Nigeria banking industries.
1.5 Research Questions
In this sub-section, there need to state out research questions to
be used in the study of problems. The questions are:
regular does the ICT check the defects or loopholes in the banking system?
what extent does fraud occurs in Nigeria banking industries?
what extent has ICT helped in fraud detection and prevention in banking system.
regular does the ICT measures the relevance and appropriateness of the adopted
control in preventing fraud?
1.6 Significance of the
When we talk of significance, we mean the benefits to be derived
in researching the case in completion of this study, the following significance
will be reasonable.
- The result of this study would help to expose
the level of fraud in Nigeria commercial banks.
- The result of this study would expose the
fraudulent staff thereby preventing fraud in the institution.
- The outcome of this study would help the
financial institution especially First Bank to see the extent of occurrence of
fraud in the bank.
- The result would also help the bank to access
their overall performance through internal control check.
- Students carrying out research in similar area
can make use of the work.
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