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Financial malpractices in the banking industry simply refer to all forms of ill practices perpetrated in the banking by the staff or outsiders. Such acts are fraudulent which erode the capital base of the affected banks and no bank for now is safe from it only that the magnitude in some cases is mi8nimal compared to others. Due to diverse effects of these fraudulent acts, various forms of checks are instituted and penalties noted out to offenders. The activities of the banks tribunals is a clear instance of such measures. 

In getting facts for this study, lots of works done on related topics are studied and various journals are used that have authoritative information on the subject . The journals consulted are mostly that of banks, supervisory authorities and in some cases view if bank staff are sought on issues that need clarification. 

Fraudulent practices are perpetrated in all sections of any economy, no government will be sitting idle watching its economy crumble via fraud. Measures are put in place to check this act but this could only minimize it if it is as well implemented. 

Government’s contribution in checking the  practices in banks is in the provision of laws and institutions with responsibility of monitoring this financial institution. The banking institution themselves are much in the war against these malpractices to save the institutions from collapse. 

In conclusion, large amounts of money are being lost by the banks through fraud. It is recommended that though there exist laws and checks against this malpractices, such laws should be enforced in its strict form and reviewed regularly to avoid certain loopholes that would be taken advantage of.





Banks all over the world have through their unique position in an economy, contributed immensely to the economic growth and development of a nation. Therefore any problem that tends to hinder their operation such as ‘fraudulent practices’ is often viewed with seriousness. For long, Nigeria’s financial system has suffered from fraudulent practices perpetrated by bank employees, people outside the banks as well as cooperative bodies. This situation became worrisome between the periods of 1992 – 1995 with unprecedented upsurge in bank fraud, particularly with the New Generation Banks (NGBs). These malpractices have led to unhealthiness and technical insolvency of Banks and total collapse.



Bank frauds all over the world were perpetrated essentially for selfish economic benefits. Thus, according to Ajamole (1990) in (Emergence of Computerized Banking) he defined fraud “as an act or course of deception, deliberately practiced to gain unlawful or unfair advantage to the detriment of another”. Any act of unfair dealing whether against the bank by its customers or against the bank by its officers or against the customers by the bank, (including its officers) is regarded as fraud. Various fraud practices have been reported and most of these cases have been tried in various courts and bank malpractices tribunal. Since the introduction of the Failed Bank Tribunals, some measures of sanity now reign in the banks.



Economists, see fraud as leakage in the economic system. Sometimes fund got through fraudulent practices are not invested into the system, Investors are scared

while funds from fraudulent practices are not put into productive uses. This project i.e Bank frauds prevention and control is presented in five chapters whereby chapter one will cover the introduction, aims and objectives, significance of the study, limitation and hypotheses. Then, chapter two examines the conceptual issues and literature reviewed. While chapter three attempts to analyze the nature and dimension of fraud, reported cases of committed fraud and the categories of staff or customers involved therein. Chapter four examines detection, causes, effects of fraud and prevention and control. Lastly, chapter five shows the summary, conclusion and recommendation against fraud practices in Nigeria Banking System.





The significance of this study is in the fact that it highlights the immediate and remote causes of fraud practices, effects, prevention, and control in Nigeria Banking System with particular reference to Union Bank. Several attempts have been made by researchers, writers e.t.c. On how to minimize or eradicate it if possible. In various organizations but such efforts have been focused mainly on manufacturing and distributive as well as public finance management, while little has been done on areas of Banking and other services industries. The studies have been geared towards finding out causes and consequences, prevention and control of frauds in Nigeria Banking Industry.

Therefore, the suggestions that are advanced in this study would no doubt be useful not only to the banking industry but to all financial institutions be it public or private sector of the Nigerian economy. The content of this research and the suggestions to be proffered will serve as resources for further study in the same or similar areas I

Banking and other financial institutions particularly in the area of fraud practices (internally) prevention and control.