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 elements 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 novation if fraud detection and
prevention in the banking industry.
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, societe 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
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
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
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.
- One major problem in the banking industry is the rate of financial
fraud which is evidenced by poor accounting recording and poor
- 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.
- The inability of then to ascertain who actually are the fraudsters
which include the officials of the banks, customers and the society at
1.3 RESEARCH QUESTIONS
To guide the study, the following research questions were raised.
- What is the role of computer on fraud detection ?
- How can computer be used to prevent fraud ?
- What are the causes of fraud in business organization ?
- What are the causes if fraud in business organisation ?
- What are the consequences of fraud in business organization ?
1.4 OBJECTIVES OF STUDY
The objectives of this study are as follows
- To find out the role f computer in fraud detection.
- To determine how computer can be used to prevent fraud.
- To identify the causes of fraud.
- Suggesting measures of preventing fraud.
- To ascertain the consequences of fraud in business organization.
- To make recommendation based on the findings.
1.5 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.
1.6 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
First Bank Plc Enugu of Enugu State has been chosen as the study area.
1.7 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.
1.8 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 steab, especially secretly and without violence