THE ROLE OF COMPUTER IN FRAUD DETECTION AND PREVENTION

THE ROLE OF COMPUTER IN FRAUD DETECTION AND PREVENTION

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 (Ajah, 2019).

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 the 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 (Mike, 2009).

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 remuneration.

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 of 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 ?

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 cause      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

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.

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