THE ROLE OF COMPUTERS IN FRAUD DETECTION AND PREVENTION IN THE NIGERIAN BANKING INDUSTRY

TABLE OF CONTENT

Title page

Approval page

Dedication

Acknowledgment

Abstract

Table of content

 

CHAPETR ONE

INTRODUCTION 

1.1        Background of the study

1.2        Statement of problem

1.3        Objective of the study

1.4        Research Hypotheses

1.5        Significance of the study

1.6        Scope and limitation of the study

1.7       Definition of terms

1.8       Organization of the study

CHAPETR TWO

2.0   LITERATURE REVIEW

CHAPETR THREE

3.0        Research methodology

3.1    sources of data collection

3.3        Population of the study

3.4        Sampling and sampling distribution

3.5        Validation of research instrument

3.6        Method of data analysis

CHAPTER FOUR

DATA PRESENTATION AND ANALYSIS AND INTERPRETATION

4.1 Introductions

4.2 Data analysis

CHAPTER FIVE

5.1 Introduction

5.2 Summary

5.3 Conclusion

5.4 Recommendation

Appendix

 

 

 

 

 

 

 

 

Abstract

This study is on the role of computers in fraud detection and prevention in the Nigerian banking industry. The total population for the study is 200 staff of CBN, Abuja. The researcher used questionnaires as the instrument for the data collection. Descriptive Survey research design was adopted for this study. A total of 133 respondents made human resource management, accountants, customer care officers and junior staff were used for the study. The data collected were presented in tables and analyzed using simple percentages and frequencies

 

 

 

 

 

 

 

 

 CHAPTER ONE

INTRODUCTION

  • Background 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. This fraudulent practice end up making their banks distressed. Nowhere is fraud more serious than 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. Moreover, 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 in clear 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 customer’s 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 MECHINE.

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 accuracy.

It is generally very fast since it has very few moving parts.

As a result of all these I considered it worthwhile to involve the use of computer in the detection and prevention of frauds in Nigeria banking industry.

 

1.2 STATEMENT OF THE PROBLEM

Banks in Nigeria have been for quite some times the centre of public attention especially in the area of fraud. Fraud here was 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 computer.

 

1.3 OBJECTIVE OF THE STUDY

The objectives of the study are;

  1. To ascertain the role of computer in fraud detection in Nigeria banking industry
  2. To ascertain the level of fraudulent in banking industry
  3. To ascertain the effect of computer in preventing fraud in banking industry

1.4 RESEARCH HYPOTHESES

For the successful completion of the study, the following research hypotheses were formulated by the researcher;

H0:   there is no role of computer in fraud detection in Nigeria banking industry.

H1: there is role of computer in fraud detection in Nigeria banking industry.

H02: there is no effect of computer in preventing fraud in banking industry

H2: there is effect of computer in preventing fraud in banking industry

 

1.5 SIGNIFICANCE OF THE STUDY

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.

  1. The study will help the banker to be more prudent in their dealing with the money deposited by their customers.

he study will also be of immense help to others willing to carry out further research ch in in this area.

  1. More over, the introduction of computer in the banking industries will help to discourage those who have the intention of involving in fraudulent act.
  2. The study will also benefit to banker and public as it enlightens them on the fraud in banking industries.
  3. The study also in partial fulfillment of the award of Higher National Diploma in Banking and Finance.

1.6 SCOPE AND LIMITATION OF THE STUDY

The scope of the study covers the role of computers in fraud detection and prevention in the Nigerian banking industry. The researcher encounters some constrain which limited the scope of the study;

  1. a) AVAILABILITY OF RESEARCH MATERIAL: The research material available to the researcher is insufficient, thereby limiting the study
  2. b) TIME: The time frame allocated to the study does not enhance wider coverage as the researcher has to combine other academic activities and examinations with the study.
  3. c) Organizational privacy: Limited Access to the selected auditing firm makes it difficult to get all the necessary and required information concerning the activities

1.7 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.

  1.8 ORGANIZATION OF THE STUDY

This research work is organized in five chapters, for easy understanding, as follows

Chapter one is concern with the introduction, which consist of the (overview, of the study), historical background, statement of problem, objectives of the study, research hypotheses, significance of the study, scope and limitation of the study, definition of terms and historical background of the study. Chapter two highlights the theoretical framework on which the study is based, thus the review of related literature. Chapter three deals on the research design and methodology adopted in the study. Chapter four concentrate on the data collection and analysis and presentation of finding.  Chapter five gives summary, conclusion, and recommendations made of the study

 

 

 

 

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Author: SPROJECT NG