Abstract This research was based on effect of electronic banking on fraud reduction in banks. The objectives of any bank is to make profit and at the same to be liquid enough in order to meet up with its short term obligations. But with the issue of fraud in banking industries, many banks, have eventually liquidated, because of this background, the research work wase base on the various means on which electronic banking has helped in minimizing of bank fraud, so that our financial institution can be achieve their goals. This work is arranged in five chapters. The chapter one covers the frame work of the subject matter, stating the problems, objectives scope and the significance of the steady, some related literatures were reviewed chapter two, stating the benefit of electronic banking, contribution of electronic banking fraud reduction in banks and challenges etc. chapter three shows the blue print of the work, stating the research design and research methodology. Chapter four shows data presentation and analysis of data and also the Analysis of Research Question and the Interpretation of the result. Chapter five contains the summary of findings, conclusion and recommendations. Finally, the research work made recommendations, that bank manager should provide a serious internal control measure in order to control the high rate of fraud in banking industry. And also the bank managers should ensure that qualified and experienced staffs are employed in the banking industry.