AN APPROACH TO DIFFERENT FRAUD DETECTING METHODS IN NIGERIAN BANKING INDUSTRY

Abstract

Forensic accounting plays a key role in curbing fraudulent activities in banking system all over the world. Therefore, this study identified different methods of fraud detection methods in controlling various frauds in Nigerian banking industry. The study was carried out in Kwara state, Nigeria. Seven banks were purposely selected, while data were sourced using well-structured questionnaire administered to 70 staffs of selected bank. The objective of the study was analyzed using both descriptive and inferential statistics hypothesis was tested with multiple regression. The result showed a correlation coefficient (R) of 0.695; a coefficient of determination (R²) of 0.518 indicating that application of fraud detecting method has about 51.8% in fraud control; and a standard error estimate of 0.32188. The result obtained in the study also revealed that forensic accounting is made easy with the use of different fraud detecting methods identified in the study and the effects of these methods is germane to fraud detection. This study concluded that the identified fraud detecting methods play a significant role in controlling fraud in banking industry.