Cases of frauds and foreign in banks have not only become incessant but have also been on the increase in recent years. Although frauds and foreign in banks are global phenomena, their growth in Nigeria Deposit Insurance Corporations (NDIC) annual report for instance, presents a disturbing picture of rising trends of fraud in banks from N360.2 million in 1992 to N351.9 million in 1991. The amount unloved in frauds in commercial banks alone rose to N1, 377.15 million in 1993, whereas the actual expected loss rose fromN64.8 million to N241.0 million. Fraud, in banks is clearly unacceptably something’s drastic ought to be done to gently stem the tide in view of its image implications for the banking industry and the adverse effects it will have on the economy. The study emerges in response to this development. In carrying out this research work, questionnaires were distributed to the respondents for their reactions. Equally oral interviews were also carried out and some texts written by eminent scholars were consulted. The researcher believed all these would give enough information for a sound report. This study therefore seeks to identify the causes and effects of book fraud. After analyzing the returned 25 questionnaire distributed to the staff of Afribank Nigeria PLC Enugu, the following findings were made:

  1. No internal control system is 100% errors proof but the internal control system of banks can be designed to make the perpetration of fraud difficult.
  2. Non-periodic review of work by bank management gives loophole and the tendency to commit fraud in the industry.
  3. The law enforcement agencies of the countries fail to deal seriously with the bank fraud sters apprehended and handed over to them.

Based on these, the following recommendation were made:

  1. The use of close circuit television surveillance should be commencing in all banks.
  2. Bank should ensure that computer operator’s passwords are kept in safe hands.


The title of this research work is “Bank fraud and its effects on Nigerian’s economy with reference to Main Street Bank PLC Enugu”. The level of fraud in the present day Nigeria has assumed on epidemic dimension. It has eaten deep every aspect of our life to the extent that a three years old child talks about “419” the name given to the newly discovered advanced fraud that is hunting our nation.

Fraud is defined as a deceit or trick deliberately carried out in order to gain some advantages dishonestly. For an action to constitute, fraud therefore there must be a dishonest intention and the action must be intended to benefit the perpetrator to the detriment of another person.

The research work will be use to solve the followings:

-     Lack of effective deterrent punishment is one of the major causes of frauds in the banks. It is also a problem of poor management which contributes to bank fraud and their ineffective poor control system.

-     There are problems of lack of effective internal control system that could lead to bank fraud.

In the course of carryingout this research work, the following objectives will be set:

  1. To identify the efforts of government and it’s agencies in the prevention and control of frauds.
  2. To know whether lack of effective internal control system leads to bank frauds.
  3. To investigate bank frauds contribution to the dwindling of economy fortune of our country.

The study will help banks and other financial institutions who are directly facing extrication as a result of financial losses due to fraud. It will also help the general public who are lost huge sum of money to bank that were declared distress without adequate compensation. It will enable them to know the various ways frauds are perpetrated.

In carrying out this research work, data will be collected using questionnaire and Oral interview, both primary and secondary data will be collected as a result, hypothesis will be tested using Chi-square techniques and other statistical tools for the data analysis as a result of conscientious and of course painstaking study I will do, I hope that a lot of findings will be achieved and conclusion and recommendation will be made.


Title Page

Approval Page




Table of Contents


1.0      Introduction

1.1      Background of the study

1.2      Statement of problems

1.3      Purpose of the study

1.4      Research questions

1.5      Significance of the study

1.6      Scope and limitation


2.0      Literature review

2.1   Major causes of bank fraud

2.2   Institutional Causes Of Fraud

2.3 Environmental / societal causes

2.4 Effect of bank frauds

2.5 Nature and types of frauds


3.0      Research Methodology

3.1   The design of the study

3.2 Area of study

3.3 The Population of the study

3.3 Sampling technique

3.5 Instrument for Data Collection

3.6 Validity and reliability of research instrument

3.7 Sources of data collection

3.8 Analytical technique


4.1      Presentation and analysis of data

4.2      Test of hypothesis


5.1      Summary Of Findings

5.2      Conclusion of the study

5.3      Recommendation