The theme of the study is “The Effect of Fraud on the Consumers Satisfaction in Guarantee Trust Bank Plc” and it is concerned with digging the root causes and analysis of fraudulent activities that occur in Guarantee Trust Bank, its effect on both the customers and the bank and the possible solutions to this menace. The study reveal that the total amount involved in report fraud cases are reducing while actual loss is rising at an alarming rate. The research also revealed that crucial to fraud prevention is the presence of an effective management control system that must be vibrant and flexible. Questionnaires were the main research instrument used in this project, management staff and key customers were the respondents. The finding revealed that fraud has negative effect on banks and customers. It came out that management staffs were not significantly different in their opinion about the effects of fraud. Finally, the study made useful recommendation that would usher combined efforts by all parties in fraud prevention to practically minimize the incidence of fraud in banks. It is recommended that a forum where bankers and all other stakeholders in banking sector could meet to educate one another on the activities of fraudsters is very much desirable. It is also commended, that internal control measures against fraud should be streamlined and evaluated periodically for maximum effectiveness.