Fraud in its effects reduces the assets and increases the liability of any company. In the case of commercial banks this may result in the loss of potential customers or crisis of confidence of banking public and impede the going concern status of the bank and ultimately lead to bank failure (Adeyemo, 2012).Fraud and its management have been the main factor in the distress of banks and as much as various measures have been taken to minimize the incidence of fraud it still rises by the day because fraudsters always device strategic ways of committing fraud.It is useful to know that many banking operatives have different reasons for joining various banks. Many have the intention of working for a short time in the banking industry(get whatever they could and find another job that is less demanding) some are in the industry because of their love for banking and all it stands for while majority are there to enrich themselves by fraudulent means. Due to the increase of great viability in the commercial banking sector its dynamic and fast expanding level of activities commercial banks are faced with different kinds of challenges among which is trying to prevent various fraudulent intentions of both staff and customers as frauds to have increased as new technology is born and more advanced techniques of enhancing business transactions have been developed.Fraudsters are constantly devising new plans updating old methods and trying out new techniques of bypassing these electronic systems meant to ensure high security of banking operations. The introductions of automated systems that lose handwriting and finger print tails have not helped matters either.
in these recent times and the rate at which fraudsters appear to have shifted their attention and directed their energies to banks devising all unimaginable tactics to exploit loopholes in the control measures and capitalize on carelessness of the staff and customers fraud in the industry has prevented many banks from achieving their goals. Some banks were just seen in the physical as body and building in reality they were already liquidated and many were already into distress.The banking sector plays a very significant role in the development of any economy (Adeyemo, 2012). Banks in most economies are the principal depositories of the public’s monetary savings the nerve center of the payment system the vessel endowed with the ability of money creation and allocation of financial resources and medium through which monetary and credit policies are implemented (Idolor, 2013, Akindele, 2012).