ABSTRACT
A
technique for automatically designing a fraud detection system using a series
of machine learning methods. Data mining and constructive induction are
combined with more standard machine learning techniques to design methods for
detecting fraudulent usage based on profiling customer behavior. Specifically,
a rule-learning is used to uncover indicators of fraudulent behavior from a
large user database. These indicators are used to create profilers, which then
serve as features to the fraud detection system that combines evidence from
multiple profilers to generate high-confidence intervention activities when the
system is deployed on-line with user data.
TABLE OF CONTENT
Title page i
Approval page ii
Dedication iii
Acknowledgement iv
Abstract v
Table of content vi
Chapter one
1.0 Introduction 1
- statement of the
problem 2
- Purpose of study 3
- Aims and objective of the study 3
- Scope of study 4
- Constraints 4
- Assumptions 5
- Definition of terms. 5
Chapter two
- Literature review 7
Chapter three
- Description and
analysis of the existing system 10
- Method of data collection 11
- Objective of the existing system 11
- Organizational chart 12
- Input/process/output analysis 13
- Information flow diagram 15
Chapter four
Design of new system 16
- Output
specification and design 16
- Input specification and design 17
- File design 17
- Procedure chat 19
- System flowchart 20
Chapter five
5.0 Implementation 22
- Program design 22
- Program flowcharts 24
- Pseudo code 25
Chapter six
- Documentation 27
Chapter seven
Summary, recommendation and conclusion 29
- Summary 29
- Recommendation 29
- Conclusion 30
CHAPTER ONE
INTRODUCTION
Fraud is whenever form is limitless in classification. This is the more reason why courts and writers on fraud haven / ways sly away from giving it a particular definition last discuss it under whatever form it prevent itself, so here, there has never been a single definition of term fraud. Not with standing the varied meaning accepted to the concept of financial fraud the concept of financial fraud the author address the subject with following working condition.
Oxford and charison dictionary simply define fraud as criminal deception. Act of decisive trick, cheating swindling person on thing that dictionary defined fraud as an act of deceitful behaviour for the purpose of gain which may be perishable by law.
However in the mind of civil court of justice fraud may be said to cover ill acts. Commission and co concealment which involves a breach of legal or equitable duty trust or confidence justly reposed and ingenious to another or by which in undue advantage is taken of another.
Bunmi Fagbemi 1990, while citing the dictionary of dictionary by penny, defined fraud to mean an act or course of deception deliberately practiced to gain unlawful or unfair advantage such deception directed to the detriment of another R.B Awasanya widely see fraud any deliberate action in whatever form (writer, spoken physical) designed to deprive a legitimate owners of his / her assets properties or rights further more, osboni’s concise law dictionary say that fraud is obtaining of a material advantage by unfair or wrongful means it involves more obliquity.
Then finally, Wole Adewumi describes financial fraud as a conscious premeditated action of a person thus the intention of the monetary gain thus having closely studies these perspective one may correctly see bank financial fraud a deliberate act by individual or group of finding within or without the Nigeria banking system to cheat deceive, swindle or manipulate in order to disposes the banks depositor / shareholders of their fraud fund.
Therefore, fraud or forgeries customer with a view to take benefit of the excess proceed or the shortfall.
Despite several definition of fraud, the author believes that one so far given are rather appropriate. Adequate and inspiring for the purpose in which the research work intend to achieve. This is because they contain the basic of fraud which include that:
- There must be deceit or deception directed to the detriment of another.
- A false representation has been made knowingly or without believes in its truth or recklessly whether it is truth or false.
- To obtain damage for deceit it must be proved that the defendant intended that the plaintiff should act on it, and suffered damages in consequence.
Thus every act of unfair dealing whether against the back by its customer or by the third parties, against the customer by the banks (including his officers) or indeed against the bank by its officers really supposed to be included financial fraud in our today’s banking system involves the use of deceit and tricks and some times highly intelligent, cunning know – how the action usually take the form of forgery, falsification of document and authority signatures and outright theft.
A fraudulent act without damage is not actionable but fraud is actionable if it deals to any form of damage, which involves on gaining at the expenses of the other.
The position of banking system in our economy cannot be over emphasized. The banking system houses the central bank of Nigeria (CBN), the commercial banks the merchant bank and the development bank. At the end of March, their were about eight five 85 licensed bank 35 merchant bank and 5 development bank. These banks occupy an indispensable position in the financial system in particular and in Nigeria economy as a whole.
Fraud have been shown serious bottleneck in the proper dispensation of the Nigeria bank roles and function to the nation the efficiency of banking system as observed by the customer has been degenerated overtime. People are becoming to get worried and sooner than late may lose confidence in our banks today fraud a common phenomenal in bank has perpetrated an agonizing influence resulting in loss of confidence and trust in our banks by depositor banks as the store house of public / people fund should be built on trust not on fraud.
1.2 STATEMENT OF PROBLEM
This research work seeks to identify the three major problems confronting the banking system. These are the problem of fraud, long queues and delay and high incidental expenses.
To some banking experts, the issue of fraud is in intend in the Nigeria banking system
The argument on the is because as they contended that a good number of fraud occur among out banks without the knowledge of the outsiders and even of where the public is aware, fraud does not effect the mood at which customers withdraws his deposited money and nor does it relate to long queues and delays.
           These experts are inclined to believe this premises because that the nation is under banked, the populace are at no option to use the available banks even if there are glaring inefficiencies in their generation. The experts are of the view that the problem of long queues and long delay in banking halls always characterized the norm of Nigeria banking system other argue that long queues and delay are as a result of incompetence and business among some bank staff.
           Another problem confronting our banks today is the high incidental expenses occurring as a result of amount spent on insurance premium paying action among the banks workers. In fact, the banking industries have had the largest number of strikes in recent years in each care, all the banks have lost their traditional, if not valued customers in the process entries and condition of service have been bought extra expenditure which have never thought of while preparing the budget for the fiscal year.
           Fraud has been paralyzed the root of banking foundation, its base nad credibility just pick up a national daily enquire from police record and you will be surprise at the extent and magnitude of bank failure and fraud.
Today, the disbursement mechanism function of our banking system has a lot of ditches militating against its smooth operations
- PURPOSE OF STUDY
The research set out to achieve the following objectives:
To determine if there are frauds in Nigeria banking industry
To determine the cause of fraud in the operation banks in Nigerian
To determine the effects of fraud in operation of bank in Nigeria
To diagnose the bank procedure with the intent of fishing out the loopholes inherent there in and suggest ways of filing them
To determine the various management and government control devices geared towards eliminating or checking financial fraud in out banking industry
To offer recommendation and solution that may help in preventing or at least reducing fraud in our banking industry
