Bank Fraud and Socio-Structural Patterns of Internal Control Measures in Nigeria

International Journal of Research and Innovation in Social Science (IJRISS) | Volume III, Issue XI, November 2019 | ISSN 2454–6186

Bank Fraud and Socio-Structural Patterns of Internal Control Measures in Nigeria

Prof. Dagaci Aliyu Manbe¹, Anthony Abah Ebonyi²

 ¹Prof. of Sociology, Criminology/Counter-Terrorism and Insurgency, Department of Sociology, University of Abuja, Nigeria
²Doctoral Candidate in Criminology, Department of Sociology, University of Abuja, Nigeria

Abstract: – The objective of this study is to examine Bank fraud and internal control measures in Nigeria. Bank fraud refers to illegal financial acts perpetrated by both bank staff and outsiders, or bank staff in connivance with outsiders, and intended to deceive, mislead and steal company property – monetary or otherwise – to satisfy personal needs or desires. The study utilised secondary sources of data which contents were anaylsed. The work place deviance and fraud triangle theories were adopted to anchor the study. The results suggest that bank fraud is prevalent and widespread in Nigeria, and therefore, it requires effective and efficient programmes to bring it under control, so as to boost investors’ confidence and protect customers or depositors interests.

Keywords: Bank, Deviance, Financial Crimes, Fraud, Internal control

I. INTRODUCTION

Bank fraud is the major economic and financial crime committed in Nigeria after Advanced Fee Fraud and Public Sector corruption. The 2016 Annual Report of the Economic and Financial Crimes Commission (EFCC) indicated that Bank and Securities Fraud constituted 9.96% of all cases in 2016, 14.94% in 2015, 18.48% in 2014, and 15.32% in 2013. This brings the percentage total to 58.7%, more than half of fraud cases reported by the Commission in the year (EFCC, 2016).
The Nigeria Deposit Insurance Corporation (NDIC) annual report showed that the number of reported cases of attempted frauds and forgeries in the nation’s banking industry witnessed a substantial increase to 26,182 cases in 2017, which was an increase of 56.30% over the 16,751 cases reported in 2016. The frauds and forgeries cases reported in 2017 also showed a 146.50% and 113.20% increase over reported cases in 2014 and 2015, respectively. In 2017, NDIC recorded 8,146 cases which was the highest attempt so far and that calls for regulatory concern especially as Deposit Money Banks (DMBs) continue to develop financial products in line with technological advancement and the prevailing harsh economic conditions.

Read More