1.1 BACKGROUND OF THE STUDY:
Banks are institutions known to operate on the center pin of public confidence. Today that concept no longer holds as bankers themselves either initiate fraud or partakes deeply on fraudulent activities against their banks (employees).
According to Nigeria Deposit Insurance Corporation (NDIC) Annual Reports (2001) most banks were run a ground by a few greedy directors and officials who perpetuated frauds and all kinds of unethical practices against their institutions. This is an aberration that continues to erode public confidence in banks.
This scenand has contributed to the liquidation of many banks.
Since it is observed that one cannot avoid considering the fact that the distress in the banking industry was occasioned by fraud, the need therefore arises to find out problems associated with fraud, it’s effect on the economy and how there problems are to tackled.