Fraud Cases And Prevention Measure In Nigeria Financial Institutions (A Case Study Of UBA Plc)

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Project and Seminar material for Accountancy

Project and Seminar material for Accountancy


First of all, I dedicate this work to the Almighty God for His infinite mercy to the possibility of this project and for His guidance and protection towards me during this my academic pursuit.

I also dedicate this work to my lovely parents Mr. & Mrs. B.C.N. Duru for the financial support and encouragement to ensuring that I have a sound academic up bring in life.


The joy in labour is in its competition, the successful completion of this project could not have been possible without the grace of the Almighty God and the co-operation as well as assistance of many individuals to whom I am greatly indebted.

I express my gratitude and appreciation to my parents Mr. & Mrs. B.C.N Duru and my lovely brother Duru uchenna Basil who the lord has used to give me support in every area of my life.

My gratitude also goes to my supervisor, Miss Mary Eghabor who spent his effort in ensuring that this project is a success.

I am also grateful to my H.O.D, Mr. Okezie and other lectures who have in one way or the other given me a continuous advice each time they lectured in class.

I wish to use this medium to than my love especially Collins Emonena who have always encourage and motivated me in one way or the other. And also my wonderful friend immaculate Umunakwe for her support and her friendly advice to me.

I thank you all for your love, support and care and I pray that the good lord bless you all and may his love and grace never depart from your household.


This work was designed to study fraud prevention in Nigerian financial institutions, with particular reference to UBA Plc. Bank deal essentially in cash instrument and other document which are generally negotiable and easily transferable in nature. Hence, it is very appropriate to say that the exposure of banks to both internal and external fraud is very great. This practice is very common to area involving cash, cheques and fraud transfer operation.

Therefore, that was the reason the researcher carried out this study in order to find out the causes of fraud and how to prevent them in the Nigerian financial institutions. From the various articles and journals, and researcher read on fraud, causes, method detection and fraud prevention in banking industries and financial institutions.

It has roused my deep interest in this project topics. It is therefore my pleasure to write on this topic “fraud prevention in Nigerian financial institution” using UBA as a case study. fraud cannot be eradicated, it is true that all theories do not think alike. So every fraud has its own unique approach, hence there may be no unique approach to forestall fraud.

The project work contains five chapters in order to obtain as much relevant information on the this study as possibly. The researcher used primary and secondary sources of data collection. The research was carried out by direct interview with the management and staff of UBA Plc is referred to as primary data. The secondary data was obtained from textbooks, magazines, journals commercial banks, annual report/ newspaper, dictionaries etc. the instrument used in data collection was mainly questionnaire.

Table Of Contents

  • Title page i
  • Certification page ii
  • Dedication iii
  • Acknowledgement iv
  • Abstract v
  • Table of content vi

Chapter One

  • 1.0 Introduction 1
  • 1.1 Background of the study 2
  • 1.2 Statement of the problem 4
  • 1.3 Objectives of the study 5
  • 1.4 Research questions 6
  • 1.5 Significant of the study 6
  • 1.6 Scope of the study 8
  • 1.7 Limitation of the study 8
  • 1.8 Definition of terms 10

Chapter Two

  • 2.0 Literature Review 13
  • 2.1 Introduction 13
  • 2.2 What is fraud 14
  • 2.3 Types of fraud 16
  • 2.4 Causes of fraud 19
  • 2.5 The legal framework 23
  • 2.6 What is over the counter fraud 25
  • 2.7 Prevention of fraud 26
  • 2.8 Empirical review of related literature 27
  • 2.9 Who commits fraud 29
  • 2.10 Current fraud practices in Nigeria 35
  • 2.11 Cheque fraud 38
  • 2.12 Banker code of conduct 40

Chapter Three

  • 3.0 Research Methodology 43
  • 3.1 Introduction 43
  • 3.2 Research Design 43
  • 3.3 Sources / Method of Data collection 44
  • 3.4 Population and sample size 45
  • 3.5 Sample technique 45
  • 3.6 Validity and Reliability of Measuring Instruments 45
  • 3.7 Method of data analysis 46

Chapter Four

  • 4.0 Presentation and Analysis of data 47
  • 4.1 Introduction 47
  • 4.2 Presentation of Data 48
  • 4.3 Analysis of data 59
  • 4.4 Interpretation of Results 60

Chapter Five

  • 5.0 Summary, Conclusion And Recommendations 61
  • 5.1 Introduction 61
  • 5.2 Summary of findings 61
  • 5.3 Conclusion 63
  • 5.4 Recommendation 65
  • Bibliography 67
  • Appendix 69
  • Questionnaire 70

Chapter One

1.0 Introduction

The level of fraud in the present day Nigeria has assumed an epidemic dimension. It has eaten deep into every aspect of our life even to the extent that a three years old child talks about Yahoo mail or 419, newly discovered sobriquet for advanced free fraud that is hunting our banking industry. Nigeria with al its natural and human resources talkers on the brick of destruction because of fraud. Much of what we do is cutting leaves instead of dealing with the root problem.

Generally, fraud takes its root from the human heart. It is an axion that the heart of man is deceitful above all things and is desperately wicked. The only remedy to the situation will be God’s intervention. Notwithstanding the varied meanings attached to the concept of financial fraud, so many authors addressed the subject with varying definitions.

1.1 Background Of The Study

The study entails on the rapid increase of the cases of fraud in the Nigerian financial institutions. Various procedure for preventions of ugly act exist but it seems like the most powerful remedy is the intervention of God. Different authors and researchers emerge with their definition on the concept of financial fraud. The following are most of the definitions.

What is fraud? According to Oxford Advance Learner’s Dictionary, fraud is defined as the crime of cheating in order to get money or good illegally.

According to the chartered institute of public finance and accounting, United State, fraud is defined as those intentional distortions of financial statements or other records which are carried out to conceal the misappropriation of assets or other wise for gain (Ando, 1997:50).

According to Adeniyi (2001), fraud refers to intentional act by one or more individuals among management employees, or third parties which resulted in a mis-representation of financial statement.

According to Okorie, fraud is a type of irregularity. The word fraud is used to refer to irregularities involving the use of criminal deception to obtain unjust or illegal advantage, however, having closely studied these approaches from definition of fraud especially from the banking perspective one may correctly see banking fraud as a deliberate act by an individual or group inside or outside the Nigerian banking dispose the bank depositors or share holders of their funds. Despite several definitions of frauds, the authors believe that the ones so far given are nearly appropriate inspiring and of advantages for the purpose in which the researcher intends to achieve.

The position of banking system in our economy cannot be over emphasized. They act as the “Conduct pipe” through which all the financial transaction passes. However, frau has brought a b sensor bottleneck to the lope functioning of the roles of the banking system to the Nigerian economy people are beginning to get worried and sooner than later may loose confidence in our banking sector due to the mainly increasing incidence of fraud in our today’s bank properties should be on trust not fraud.

1.2 Statement Of The Problem

The frequent causes of financial fraud in many financial Institutions in our country are now taken as the utter most concern to financial experts and macro economist. To some banking experts the issue of fraud is an internal vice on the Nigerian banking system. They argue on this because a good number of fraud occur among our banks without the knowledge of outside even where the public is aware, it does not affect the rate at which customers withdraw or deposite money.

These experts are inclined to believe this because the nation is under banked the populace are at no option but to sue the available banks especially the foremost and well established bank like UBA Plc, even if there are glaring inefficiencies in the operations in competence and laziness among most bank staffs giving birth to fraud.
Fraud has paralyzed the roof, the foundation and crushability of our banking system. Just pick up any national daily newspaper of from the police record and you will be alarmed at the extent and magnitude of bank fraud in Nigerian banking system many banks have gone on distress. Therefore, the researcher is aiming at finding or training fraud in the Nigerian banking system which has to offer to these deficiencies aforementioned with special reference with UBA Okpara Avenue, Enugu.

1.3 Objectives Of The Study

The overall objective of this work is towards ascertaining the effects of financial fraud, have had on Nigeria banking system or banking industry since its inception is in the Nigeria industry. Furthermore, the subsidiary objectives include:

  1. To find out the causes of fraud in our financial institution.
  2. To identify the problems faced as a result of the introduction of financial fraud
  3. To recommend solutions that may help in the eradication of financial fraud in our banking system.

1.4 Research Question

The following research question have guide the study:

  1. What are the causes of financial fraud, can this be checked and controlled?
  2. Has financial fraud in the banking industry help to impede problems towards their failure?
  3. What measure does the bank adopt to check financial fraud?

1.5 Significant Of The Study

The significance of the study is divided into two namely:

  1. Academic significance
  2. Practical significance

Academic Significance:

These will readers and those who any wish to make reference on this study while undertaking similar research work, for potential auditors and accountants, it is a material of reading they should be able to understood what is fraud, what is audit, how and why auditing and internal control system is an ingestible ambent of business system.

Practical Significance:

This project will equally be of immense help to other establishment and organization both in public and private sector. The need to establish a visible internal audit unit as a means of internal control should not be over- emphasized.

It is of help tat the management of UBA, Okpara Avenue, Enugu in particular should use the finding of this research to equip the audit (ie audit department and inspection) investor, promotes and shareholders would find this very useful. This will serve as an eye opener to them on what it takes to invest in banks.

However, this work will be of immense help to financial institution in Nigeria in particular and to al that may have need for assistance in detection of these opportunities in general.

1.6 Scope Of The Study

This research work is to examine fraud and how it can be prevented in Nigeria financial institutions with a particular reference, the scope of the study was defined to embody all relevant aspects of fraud in banking industry.
The scope of the study also focused on areas relating to the staffs strength, bank size of depositors, size of loans and allowance, years of banking experience of fraudsters the means of fraud prevention and detection and punishment to be imposed on fraudsters.

1.7 Limitation Of The Study

In a study of the nature, one would like to accumulate data from many areas but owing to the length of time allowed for this research, such a wide range sample study was almost externally difficult. There are a lots of factors that constituted limiting factors to this project work, just to mention few which are:

1. Financial constraints:

As a student, there was no enough borrowing of more relevant literature will be of help in writing this research work or project.

2. Attitude:

The non-challant attitude of some of the staff members regarding giving useful information hinders the progress of the research due to fear of being giving out officials secrets.

3. Unreleased information:

Some information were being coded by the organization which was not released to the researcher.

4. Death information:

There are no comprehensive write up or books on compulsory acquisition and compensations, there are few books and journals in searching for this topic and hence review of literature was difficult.

5. Time factor:

The short limited time given for the compilation of this project deprived it of more technical touches.

However, effort has been made to ensure that this situation does not hinder the completion and equality of this research work.

1.8 Definition Of Terms

Misappropriation Of Assets:

This is an irregularity involving acquisition application of the resource of an enterprise for one’s personal benefit without disclosure to the enterprise.


This is the intentional distortion of the financial statement to secure a particular advantage such as the misappropriation of assets, avoidance or evasion of tax and omission of disclosures.

Fraud Auditor:

A fraud auditor is an expert who by this specific scientific and technical training, exposure and experience knows more and more about fraud.


The independent examination and expression, opinion on the financial statement of an enterprise by an appointed auditor, in pursuance of that appointment and in compliance with any relevant statutory obligation.

Fraud Auditing:

fraud auditing may be defined as the creation of an environment that encourages the detection of prevention of fraud in government, public, commercial and even private establishment.

Internal Audit:

This is a management tool with which is used to appraise the activities of the management by themselves through appointed staff of the organization.

Internal Auditing:

This is the independent appraisal of the activities within an organization for the review of accounting and other operations as the basis for service to management.

Internal Control System:

This is the management control which functions by measuring and evaluating the effectiveness of other controls ( in all areas of the organization)


This refers to the intentional distortion of financial statement for whatever purpose and misappropriation of assets.


This is the examination of certain statement covering the transactions over a period and the financial position of an organization on a certain date in order that the auditor may issue a report on them.


The word error is used to refers to unintentional mistake in financial statement whether of mathematical or clerical nature or whether due to over sight misinterpretation of the relevant facts.

I bet you, the complete material is fully loaded. This is just an excerpt. The Material is in MS-Word Format which you can easily edit and is comprehensive for a complete research work for this topic

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How to nail it on the head during your project defence

You are through with writing that project. Now what?

You have found yourself at that point where you have to defend what you have written. Of course you have to stand in front of your supervisor and other literary personalities to prove that you know what you wrote in your project paper. Unfortunately, the more you think about it, the more it looks like you are about to face a legion. It is not a war. But the emotion of dread welling up inside of you makes it look like one. So now you are asking yourself questions.

  • How am I going to start?
  • I hope I will do well enough to get an A.

You really want to nail it, but you need to come to terms with exactly how to get everything in perfect control. Especially your emotions of fear that seem to make a wreck of you every time you think about public speaking.
So here is the deal. I want to help you avoid that feeling that would ruin your precious moment if you dare to let it. And we are going to do it together.

I am going to highlight some very important tips to help you get in control for you to be comfortable enough to move from that feeling of DREAD to CONFIDENT; and making an awesome Impression for that great rating your supervisors should be giving to you so freely.

Consider these tips as you prepare for your defence. We will be taking them one after the other so here we go.

Watch Your Body Language And Keep It Confident:

Can you tell that a person is falling apart if they look confident? … If I can second guess you rightly, am sure you answered no to that question. Remind yourself that you need to come out that way. Now this might seem like a huge big deal when you are dealing with the foreboding. Maintaining a poise of confidence is very important. So find your most comfortable position, sitting or standing and draw up your body. You must exude confidence. It is something you need to do for yourself. People can only see what you allow your body language to show. So you must endeavour to put that out. Remember the story of David and Goliath? … At the end of your defence day, you want to be David.

Dress In Your Most Comfortable And Impressive:

Am sure this one is a no brainer. However I must highlight that you choose comfortable pieces. You don’t want to look so good and yet look like you were forced to wear something that does not belong to you. It’s great to ensure that as impressive as your clothes are on you, that they are also very comfortable.

Speak With Authority:

Going hand to hand with that aura of confidence is your most powerful asset:your words. If you look that confident, your words must not come out like whimpers. To be able to pull this off, you definitely need to speak as deliberately as possible in expressing yourself. Let them also hear what they see.

Use, Your Gestures:

I have often found this to come to my rescue in dealing with shyness and conveying my confidence. Usually it gives you an edge to also drive home your point. You must, however, ensure that you do not over use it. It doesn’t mean that your hands should be flying all over the place. That would be absolutely unnecessary. If you do this well, after a while you will realize that you are not as self-conscious as you used to be at the very start. For most situations, it would have completely disappeared altogether; leaving a really confident you talking.

Have A Good Opening And Closing Line:

Make sure you have perfected a good opening line. You should also be armed with a good closing line too. Try and rehearse it to a friend. If for the first time you presented it, your friend does not say “wow, that’s beautiful” or something like that; just know you need to keep refining it until you get the perfect line. Both opening and closing lines will go a long way in how impressed your panel gets to rate you high.

Make Sure You Know Your Work:

Certainly you should understand how important it is to know your own work from start to finish. Not having in-depth knowledge of your own work is tantamount to a suicide mission. Why should you kill yourself?
When all is said and done, this is what you came to defend in the first place. You should know your work from A to Z.

Prepare For The Questions:

Now this part is truly essential. You must be sure you do not floor all the good work you did on your presentation by not answering correctly. You must pay attention to the questions you are asked to be sure you will give the right answer. Many people get it wrong at this stage and spoil their good presentation. When you do not understand any question do endeavour to ask the person to expatiate what they mean before you answer.

These tips are by no means exhaustive, but applying these tips will give you some necessary advantage you need for a great outcome. Of course that outcome would mean that you eventually earn all your points on this project.



Samuel Obiora Blessed is the CEO and founder of a.k.a Nigeria Students Media, the youngest engineering graduate of Federal Polytechnic Nekede in 2017 and the engine brain behind this great platform. He is the man behind the scene, filled with many potentials. A musician as well as a developer with the interest of Nigeria students at heart. If you need a professional website, contact him via WhatsApp or phone call @ 08143831497 to get the best.

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