The number of banking frauds is increasing significantly every year, and more people are becoming negatively affected by the consequences of the scams. The case study written by Enofe et al. (2017) has shown the most common bank fraud in Nigeria and what can be done to decrease the influence of the problems. Fifteen banks in Nigeria participated in the research and provided their unique experience regarding banking scammers (Enofe et al., 2017). By evaluating all facts, it was found that stakeholders, customers, and suppliers are the most influential parties in fraud.
The banking industry is expanding every year, and scammers are following all trends to improve their tricks. However, the Association of Certified Fraud Examiners (ACFE) has found that the banks of Nigeria are more sustainable to fraud, and their systems go forward with the skills of scammers (Enofe et al., 2017). Even though banks are paying more attention to internal problems, external issues are also caused by banking fraud. Enofe et al. (2017) suggest that banks should pay equal attention to external and internal factors to understand the gaps that should be filled with valuable solutions. This overview of the problem has helped the authors to set the right objectives to decrease the level of fraud in banks in Nigeria. For example, one of the main aims of the case study is to understand how good corporate governance is and how changes can help prevent scams (Enofe et al., 2017). Moreover, the study aimed to understand if improving internal control can help solve the problem.
The case shows how well corporate governance works in Nigeria as all parties stay secure. According to Enofe et al. (2017), outside investors in banks in Nigeria are protected by insides like managers and family members who have banking accounts. Control over finances helps prevent fraud in Nigeria as people from outside the bank can easily control their investments. It was also mentioned that the low level of ethical competency had caused an increase in the number of bank frauds (Enofe et al., 2017). Bank workers can create scams, and without proper ethics education, clients can be tricked by those they trust. Consequently, this case study popularizes the importance of ethical training based on religious and moral aspects.
The implementation of solutions to the problem of banking fraud has been deeply analyzed in Kenya, and some valuable takeaways were applied to the case of Nigeria. For example, the gap in banking systems was identified during the internal control analyses as workers did not follow all the regulations (Enofe et al., 2017). Professionals advised it to increase the number of professional staff and specific banking areas to divide the amount of work. This solution was implemented in Nigeria, and it was found that the number of frauds decreased when workers started paying attention to internal factors (Enofe et al., 2017). The inappropriate internal control design has caused problems for Nigerian banks that participated in the case study, but the provided solution helped to overcome the problem.
The case study has provided the most common problem that appears in banks in Nigeria and what is done to decrease the level of scams. By analyzing the cases of other countries, it became easier for the researchers to identify the problem in Nigeria and implement a solution that worked well. Additionally, these solutions allowed workers to change their attitude toward their responsibilities and control fraud more strictly.
Reference
Enofe, A. O., Abilogun, T. O., & Omoolorun, A. J. (2017). Bank fraud and preventive measures in Nigeria: An Empirical Review. International Journal of Academic Research in Business and Social Sciences, 7(7), 40-51. Web.