FRAUD AND FORGERIES IN NIGERIAN BANKING INSTITUTIONS: CAUSES AND SOLUTIONS

ABSTRACT

The study reviewed fraud and forgeries in Nigerian banking institutions, thier causes and solutions during the period of March, 2024. The study objectives were to Identify the major causes of fraud and forgeries in Nigerian banking system, to identify the prevalence of fraud and forgeries among bank employees and bank customers, to determine the age group and gender of fraudsters conducted in Nigerian banks, to determine the level of financial loss suffered by Nigerian banks to fraud and forgeries within the period of study and to ascertain the impact of loss to fraud and forgeries on the Nigerian economy. In the study, primary data was obtained by means of online questionnaire distributed through google forms to 183 respondents which included bank workers in University of Benin who have direct access to relevant information on fraud and forgery activities perpetuated in banking institutions. The study found out that majority of the respondents perceived fraud and forgeries as a serious crime that could lead to bank failure, and that there are three main groups that perpetrate frauds in Nigerian banking institutions in the following ascending order: Bank employees, bank customers and contract staff with contract staff being charged as the main perpetrators of frauds. Further more that Fraud and forgeries in banking institutions have negative impact on the nation’s economy and that the main consequence of fraud and forgeries on banking institutions is that they lead to a reduction in banking institutions’ profits. The study recommends, among others, that appropriate mechanisms be put in place to ensure that fraud cases are adequately prosecuted while avoiding any negative image or negative publicity that a bank may face from the public, and that governments should outlaw the use of contract employment among staff in the nation’s banking institutions