Fraud has been identified as the major cause of distress and
unprogressive nature of most business organization in the country. Even
though, there are intelligent people who work round the clock to fault
the system; but there are more intelligent people who build on fraud
check devices hence the computer. It is the aim of this study to find
out the role of computer in fraud detection and prevention in business
organization (A Case study of First Bank of Nigeria Plc.) The work has
five chapters, chapter one contain the body of the topic which included
the problems studied, why the study was carried out and the definition
An extensive review of related literature on computer as
it relates computer crime, types, Computer fraud, Types, role of
Computer in fraud detection and prevention are highlighted in chapter
two. Chapter three dealt with the design of the study, the methods used
in the distribution and collection of the questionnaires and the
treatment of the data.
The data got from the research survey were
analyzed interpreted and the hypothesis tested in chapter
Finally, the summary of findings, conclusion on the research
and recommendation are all in chapter five.
If Banks and other
business organizations in the country would put the findings and
recommendations to use, the incessant incidence of fraud will not only
be detected and prevented but the customers will be satisfied with the
services, which will bring a continuous increase in profit there by
making the problem of the banks a thing of the past.
The computer machine and computer technologies are both human oriented.
Though, the computer is brilliant and intelligent, it cannot compete
with human. This is to say that the computer technology excellence of
intelligence is desirable from the human elements that interact with the
system and technology to make it work. It is whatever this human
element commends the computer to do that is does. Computer is absolutely
harmless except it is imbued with the tendency to harm.
Computer is basically defined as an electronic machine which
accepts data form an input devices, perform arithmetic and logic
operations in accordance with defined data and finally transfer the
processed data to an output device through the central processing unit
(CPU) either for further processing or to be produced as a final result.
Computer technology has come to be accepted as an
indispensable in Motivation if fraud detection and prevention in the
Fraud has for a long time now remained the cancer-warm that is
biting hard on the back bone of banking industry. The effect of this
phenomenon has led to the liquidation of many banks in Nigeria.
It has been the major cause of the ugly development in our Banking industry now refereed to as ‘DISTRESS’
The development which records high occurrence of our banks has
caused a big question mark on the credibility of Nigerian in both with
and outside the country. The need to combat the double –headed monster
by all means gave rise to the issue of cultiviatism of the banking
industry especially in the areas susceptible to fraud.
1.1 BACKGROUND OF THE STUDY
Since 1986 when structural adjustment programme was introduced, the
banking business changed. As the number of branches grow form sixty
five in 1985 to one hundred and fifty five in 1994, the techniques of
delivering bank services changes.
In November 1990, society general Bank launched their first
Acitomated teller machine (ATM) with trade name SGBN’S Aim’s cash point
24. The followed by first bank of Nigeria Plc in December 1991 with
their ATM called “First cash” located in six branches in Lagos.
The House journal of first Bank of Nigeria (1991) affirmed that prior
to AIM, other forms of electronic banking existed notable among which
were computers. The computerization of Enugu (Main) branches in April,
1989 and also the recent introduction of local Area network (LAWS) or
the 26th of October, 1999 and the Reengineering projects which will
usher in the wide Area net work (WAN) before the next millenium.
But how far has the computer networking of these banks improved the
long stay of customer on the counter; could manual application of
interest on savings accounts, commission, on turnover and overdraft
account handled automatically by the system? Can management always
extract up to data information or account position of the operation at a
particular point in time.
The state of the banks services t customers are such that customers
are made to stay helplessly on the counter for hours, only to be
attended to by neatly dressed impolite bank cashier. The security
checks are simply cumbersome and bank staff wishing to stay on their
employment vigorously follow these procedures.
Then bank manager and he staff seem not to bother as they
profiled form chars queues generate. It created in them an area of self
importance and a customer who is time conscious will have to see
him/her in his/her company officer for behind the counter deal.
However, there is no doubt that the fear of fraud slaved down
bank services and has militated against performing any feast in the art
of quick and excellent quality service.
The experience of the banks is that any money that goes out by
mistake does not come back and there are many people who are prepared
to rob the bank through fraud. But computer has helped a lot in the
detection and it prevention in banking industry.
Based on personal experience and views of others on the role
of computer in fraud detection and prevention in banking industry in
Nigeria, the researcher was motivated to evaluate the role of computer
in fraud detection and prevention in banking services. A case study of
first bank of Nigeria Plc Enugu main branch.
1.2 STATEMENT OF PROBLEMS
It has been observed that many people has been manipulating
money and embezzlement of fund in Business organization as in first
banks of Nigeria Plc Enugu branch. Observation also shows that people
prefer manipulated money to their main salary which lead to the
liquidation of the organization . Handling such until the inversion
of computer. What then are the role of computer in fraud detection and
prevention in business organization ? This fundamental question
underlines the problems of this study.
This research work seeks to identify the major problems confronting
the banking system and its is distributed towards the following
statement of problem.
1. One major problem in the banking industry is the rate of
financial fraud which is evidenced by poor accounting recording and poor
2. Another problems could be to determine the consequences of
financial embezzlement in the banking industry which could lead to poor
profit base, retrenchment and the bank being distressed.
3. The inability of then to ascertain who actually are the
fraudsters which include the officials of the banks, customers and the
society at large.
1.3 OBJECTIVES OF STUDY
The objectives of this study are as follows
1. To find out the role f computer in fraud detection.
2. To determine how computer can be used to prevent fraud.
3. To identify the causes of fraud.
4. Suggesting measures of preventing fraud.
5. To ascertain the consequences of fraud in business organization.
6. To make recommendation based on the findings.
1.4 RESEARCH QUESTIONS
To guide the study, the following research questions were raised.
1. What is the role of computer on fraud detection ?
2. How can computer be used to prevent fraud ?
3. What are the causes of fraud in business organization ?
4. What are the causes if fraud in business organisation ?
5. What are the consequences of fraud in business organization ?
1.5 RESEARCH HYPOTHESIS
NULL HYPOTHESIS (HO)
HOI:There is no significant difference on the views of senior
and junior staff of first bank of Nigeria, Okpara Avenue
on the extent of improved customers services because
of computer installation.
HO2:There is no significant difference between the staff on
the extent to which management information system is
adequate without computer.
HO3:There is no significant difference between the staff on
the extent to which computer installation has helped in
the achievement of the objectives.
HO4:There is no significant difference in the views of Senior
and Junior staff of first bank of Nigerian Plc Okpara
Avenue on the adequacy of human and non-human
resources for implementation of computer installation.
1.6 SIGNIFICANCE OF THE STUDY.
The significance of this study lies on the great importance attached
to the computer in business organization from the findings of this
research, people will know the importance of computer in fraud
detection and thus prevention.
This work is significant in the sense that it will be an eye opener
to the pubic at large. Another significance is that people will know
that there is no means of manipulation of fraud where computer is
installed. Interested organization, business centers, institution and
many others having know the role of computer will make use of computer
in their organization for them to curb this fast growing problem will
benefit from the study.
It will help the organization to know when their money is embezzled.
1.7 SCOPE OF THE STUDY
This study covers a period of five years, that is from 2003
backwards. This period was chosen because the problem of fraud in
banking appears to be more prevalent in the this period.
First Bank Plc Enugu of Enugu State has been chosen as the study area.
1.8 DEFINITION OF CONCEPTS.
These are the definitions of terms used in the study.
COMPUTER: Computer is an electronic device with in
built programs which enable it to receive, store, process and procedure
large amounts of data for the execution of a more range of arithmetic
and logical operation.
CRIME: Crime is any act of commission or omission
believed to be socially harmful to a group and thus forbidden by the
designated authority of that group under threat of punishment states
another way or a specific element or act of human behaviour which vary
in time and place which is considered repayment or harmful enough to be
forbidden by the group and this subject to a penalty.
FRAUD: Criminal deception or act of manipulation of fund by criminal act.
PREVENTION: Serving or designed to prevent, precautionary.
THIEF: Person who steal, especially secretly and without violence.