CHAPTER ONE
INTRODUCTION
1.1 Background of the Study
This project works examines the impact of fraud and other sharp practices on the performance of banking industry in Nigeria. Therefore, the world fraud and other sharp practices will be emphasize on the course of this unite up. According to Babatunde (2006) fraud is define as an intentional misrepresentation, of financial information by one or more individuals among management, employees, or third parties fraud usually involves elements of dishonest deceit, non-disclosure of information concealment and other practices ingenuously perpetrated, in order to obtain unjust or illegal financial advantages. Going by this definition fraud in Nigeria economy cannot be restricted to the bank alone fraud in bank is not a new phenomenon as old as industry itself. However, like in the greater society they have become one of the most serious problems of modern day banking.
Other sharp practices that is being perpetrated, in the banking industry includes, embezzlement and theft, misuse of the asset of the bank, manipulation of figures, forgeries but all this can be compressed into fraud, that is, the word “fraud” can be used capture all this act. Fraud can be committed by the employers, customer and management of the bank concerned or others operating independently or in conspiracy, with other inside or outside the financial institution. Fraud had its origin from the day the banking industry started in the country and in as much as the federal government through central bank attempt to solve this problem among other by promulgating different banking legislation, little or no success was achieved in this regard.
1.2 Statement of The Problem
This write up is expected provide answer to the following.
1. To find out the cause of fraud in banking industry.
2. To identify the impact of fraud in banking industry.
3. To make recommendation and suggest solution to solve the problem of fraud in Nigeria banking industry.