SECURING THE NIGERIAN BANKING INDUSTRY: APPROACHES TO FRAUD PREVENTION

This study assesses the prevalence, causes, and remedies of financial fraud in the Nigerian banking sector, with a focus on First Bank, Keystone Bank, and Zenith Bank. Despite the absence of comprehensive statistics on the magnitude of successful and attempted frauds, the research investigates various types of financial fraud, their underlying causes, effects on the banking industry, and the effectiveness of preventive measures. Findings indicate that failure of bank staff to adhere to established procedures, coupled with adverse economic and social conditions, are major contributors to financial fraud. Common methods of fraud include internet and e-banking scams, account falsification, forged cheques, corruption, and signature forgery. The study recommends that supervisory bodies such as the Central Bank of Nigeria (CBN) and the Nigeria Deposit Insurance Corporation (NDIC) strengthen oversight mechanisms, investigate fraudulent methods, and implement effective preventive measures to reduce fraud incidence and protect the integrity of the banking sector