Fraud in itseffects reduces the assets and increases the liability of any company

Fraud in itseffects reduces the assets and increases the liability of any company. In the case of commercial banks this may result in the loss of potential customers or crisis of confidence of bankingpublic and impede the going concern status of the bank and ultimately lead to bank failure (Adeyemo, 2012).
Fraud and its management have been the main factor in the distress of banks and as much as various measures have been taken to minimize theincidence of fraud it still rises by the day because fraudsters always device strategic waysof committing fraud.
It is useful to know that many banking operatives have different reasons for joiningvarious banks. Many have the intention of working for a short time in the banking industry(get whatever they could and find another job that is less demanding) some are in theindustry because of their love for banking and all it stands for while majority are there toenrich themselves by fraudulent means. Due to the increase of great viability in the commercial banking sector its dynamic and fast expanding level of activities commercial banks are facedwith different kinds of challenges among which is trying to prevent various fraudulentintentions of both staff and customers as frauds to have increased as new technology is born and more advancedtechniques of enhancing business transactions have been developed.
Fraudsters are constantly devising new plans updating old methods and trying out newtechniques of bypassing these electronic systems meant to ensure high security of bankingoperations. The introductions of automated systems that lose handwriting and fingerprinttails have not helped matters either in these recent times and the rate at which fraudsters appearto have shifted their attention and directed their energies to banks devising all unimaginable tactics to exploit loopholes in the control measures and capitalize on carelessness of the staff and customers fraud in the industry has prevented many banks from achieving their goals. Some banks were just seen in the physical as body and building in reality they were already liquidated and many were already into distress.
The banking sector plays a very significant role in the development of any economy (Adeyemo, 2012). Banks in most economies are the principal depositories of thepublic’smonetary savings the nerve center of the payment system the vessel endowed with the ability of money creation and allocation of financial resourcesand medium through which monetary and credit policies are implemented (Idolor, 2013, Akindele, 2012).