The computer machine and computer technologies are both human oriented.
Though, the computer is brilliant and intelligent, it cannot compete with human. This is to say that the computer technology excellence of intelligence is desirable from the human elements that interact with the system and technology to make it work. It is whatever this human elements commends the computer to do that is does. Computer is absolutely harmless except it is imbued with the tendency to harm.
Computer is basically defined as an electronic machine which accepts data form an input devices, perform arithmetic and logic operations in accordance with defined data and finally transfer the processed data to an output device through the central processing unit (CPU) either for further processing or to be produced as a final result.
Computer technology has come to be accepted as an indispensable in novation if fraud detection and prevention in the banking industry.
Fraud has for a long time now remained the cancer-warm that is biting hard on the back bone of banking industry. The effect of this phenomenon has led to the liquidation of many banks in Nigeria.
It has been the major cause of the ugly development in our Banking industry now refereed to as ‘DISTRESS’
The development which records high occurrence of our banks has caused a big question mark on the credibility of Nigerian in both with and outside the country. The need to combat the double –headed monster by all means gave rise to the issue of cultiviatism of the banking industry especially in the areas susceptible to fraud.
1.1 BACKGROUND OF THE STUDY
Since 1986 when structural adjustment programme was introduced, the banking business changed. As the number of branches grow form sixty five in 1985 to one hundred and fifty five in 1994, the techniques of delivering bank services changes.
In November 1990, societe general Bank launched their first Acitomated teller machine (ATM) with trade name SGBN’S Aim’s cash point 24. The followed by first bank of Nigeria Plc in December 1991 with their ATM called “First cash” located in six branches in Lagos.
The House journal of first Bank of Nigeria (1991) affirmed that prior to AIM, other forms of electronic banking existed notable among which were computers. The computerization of Enugu (Main) branches in April, 1989 and also the recent introduction of local Area network (LAWS) or the 26th of October, 1999 and the Reengineering projects which will usher in the wide Area net work (WAN) before the next millenium.
But how far has the computer networking of these banks improved the long stay of customer on the counter; could manual application of interest on savings accounts, commission, on turnover and overdraft account handled automatically by the system? Can management always extract up to data information or account position of the operation at a particular point in time.
The state of the banks services t customers are such that customers are made to stay helplessly on the counter for hours, only to be attended to by neatly dressed impolite bank cashier. The security checks are simply cumbersome and bank staff wishing to stay on their employment vigorously follow these procedures.
Then bank manager and he staff seem not to bother as they profiled form chars queues generate. It created in them an area of self importanceand a customer who is time conscious will have to see him/her in his/her company officer for behind the counter deal.
However, there is no doubt that the fear of fraud slaved down bank services and has militated against performing any feast in the art of quick and excellent quality service.
The experience of the banks is that any money that goes out by mistake does not come back and there are many people who are prepared to rob the bank through fraud. But computer has helped a lot in the detection and it prevention in banking industry.
Based on personal experience and views of others on the role of computer in fraud detection and prevention in banking industry in Nigeria, the researcher was motivated to evaluate the role of computer in fraud detection and prevention in banking services.A case study of first bank of Nigeria Plc Enugu main branch.
1. STATEMENT OF PROBLEMS
It has been observed that many people has been manipulating money and embezzlement of fund in Business organization as in first banks of Nigeria Plc Enugu branch. Observation also shows that people prefer manipulated money to their main salary which lead to the liquidation of the organization .Handling such until the inversion of computer. What then are the role of computer in fraud detection and prevention in business organization ? This fundamental question underlines the problems of this study.
This research work seeks to identify the major problems confronting the banking system and its is distributed towards the following statement of problem.
1. One major problem in the banking industry is the rate of financial fraud which is evidenced by poor accounting recording and poor remuneration.
2. Another problems could be to determine the consequences of financial embezzlement in the banking industry which could lead to poor profit base, retrenchment and the bank being distressed.
3. The inability of then to ascertain who actually are the fraudsters which include the officials of the banks, customers and the society at large.
1. RESEARCH QUESTIONS
To guide the study, the following research questions were raised.
1. What is the role of computer on fraud detection ?
2. How can computer be used to prevent fraud ?
3. What are the causes of fraud in business organization ?
4. What are the causes if fraud in business organisation ?
5. What are the consequences of fraud in business organization ?
1. OBJECTIVES OF STUDY
The objectives of this study are as follows
1. To find out the role f computer in fraud detection.
2. To determine how computer can be used to prevent fraud.
3. To identify the causes of fraud.
4. Suggesting measures of preventing fraud.
5. To ascertain the consequences of fraud in business organization.
6. To make recommendation based on the findings.
1. SIGNIFICANCE OF THE STUDY.
The significance of this study lies on the great importance attached to the computer in business organization from the findings of this research, people will know the importance of computer in fraud detection and thus prevention.
This work is significant in the sense that it will be an eye opener to the pubic at large. Another significance is that people will know that there is no means of manipulation of fraud where computer is installed. Interested organization, business centers, institution and many others having know the role of computer will make use of computer in their organization for them to curb this fast growing problem will benefit from the study.
It will help the organization to know when their money is embezzled.
1. SCOPE OF THE STUDY
This study covers a period of five years, that is from 2003 backwards. This period was chosen because the problem of fraud in banking appears to be more prevalent in the this period.
First Bank Plc Enugu of Enugu State has been chosen as the study area.
1. RESEARCH HYPOTHESIS
NULL HYPOTHESIS (HO)
HOI: There is no significant difference on the views of senior and junior staff of first bank of Nigeria, Okpara Avenue on the extent of improved customers services because of computer installation.
HO2: There is no significant difference between the staff on the extent to which management information system is adequate without computer.
HO3:There is no significant difference between the staff on the extent to which computer installation has helped in the achievement of the objectives.
HO4:There is no significant difference in the views of Senior and Junior staff of first bank of Nigerian PlcOkpara Avenue on the adequacy of human and non-human resources for implementation of computer installation.
1. DEFINITION OF CONCEPTS.
These are the definitions of terms used in the study.
COMPUTER: Computer is an electronic device with in built programs which enable it to receive, store, process and procedure large amounts of data for the execution of a more range of arithmetic and logical operation.
CRIME: Crime is any act of commission or omission believed to be socially harmful to a group and thus forbidden by the designated authority of that group under threat of punishment states another way or a specific element or act of human behaviour which vary in time and place which is considered repayment or harmful enough to be forbidden by the group and this subject to a penalty.
FRAUD: Criminal deception or act of manipulation of fund by criminal act.
PREVENTION: Serving or designed to prevent, precautionary.
THIEF: Person who steab, especially secretly and without violence
2. LITERATURE REVIEW
This chapter reviews Literature relating to the theme and sub themes of this study. Major ideas of this section are grouped and presented under the following sub-headings.
1. Computer defined, types and classification
2. Crime defined, types of crime
3. Role of computer in fraud detection and prevention, what is fraud, types of fraud, Nature of fraud.2.1 COMPUTER DEFINITION
Computer is defined as a machine which accepts data from an input devices which perform arithmetic and logical operations in accordance with define data and finally transfer the processed data to and output device in through the Central Processing Unit (C P U), either for further processing or to be produced as a final result.
It can be also defined as an electronic machine that accepted data, processes the data as instructed and produces an output. The data to be processed is fed into the computer by means of an input device. We note two important fact about the operations of the computer.
1. The computer does nothing on its own initiative. It is always guided by an internally stored set of instructions know as a program. As a matter of fact, the computer has no initiative.
2. The nature of the output is based on the validity of the instructions given to the computer during a particular problem solving process. A functional computer has two component, namely the hard ware and software.COMPUTER HARDWARE: Computer hardware is a collective term that refers to any physical component of the computer system, which can be seen, touched, handled, or felt. These various hardware items that make up the computer perform various functions when the computer is in use. The broad processes the computer hardware carries are.
1. Accept data and program instructions.
2. Process the data using the instructions
3. give an out put or result of the processed device.
4. Store the data.The computer hardware has four component
1. Input unit
2. Output unit
3. Central Processing Unit
4. Storage unit. FOUR UNITS OF COMPUTER HARDWARE SYSTEM
COMPUTER SOFTWARE: A set of instructions that tells the computer what to do is known as a program. The instructions must be written in a formal or language that the computer understand software is based under these classification.
1. System software
2. General purpose application software
3. Specific use defined software
4. Utilities software.
1. CLASSIFICATION OF COMPUTER
Computers are distinguished based on the type of data they process. From this perspective, these distance type are identified.
1. Digital Computer
2. Analogue Computer and
3. Hybrid Computer.
THE DIGITAL COMPUTER
Predominantly the computers around us are digital in nature, but what do we mean when we say a computer is digital ? Before we answer this question let is first explain there form of the data processed by the computer.
The computer accepts, process and transmits data in form of electrical signal (or voltage). Basically, there are two types of electrical signal. These are
1. Analogue signal and
2. Digital signal
An analogue signal is signal that varies continuously with time and can take any value. The value of an analogue signal voltage at any point in time depends on the magnitude of the quantity it represents.
A digital signal on the other hand consists of a steam of voltage pulse. In this types, voltage cannot take on a value rather there are only two possible voltage levels – “ON and OFF”
These are also designated as “HIGH and LOW” or I and O, respectively. Digital computer is the type that is designed to process digital signals. It is a bi-stable state device. This means that while in operation it toggles or alternates between the two states “ON represented by I, and OFF represented by O. Example of digital computer are Micro Computer and mainframe computer.
A hybrid computer is one that combines the functional features in both the digital and analogue computer systems. Hybrid computer are used when the area of application involves both digital computing and analogue computing. Hybrid computer make use of special electronic circuits called Analogue –to-Digital Converter (ADC) and Digital –to-Analogue converter (D A C). The ADC converts analogue signal to digital signals fig 1.2 while the DAC converts digital
signal to analogue signals fig 1.
Digital to Analogue converter (DAC)
Computers can be classifed by
DIAGRAM OF ANALOGUE AND DIGITAL
COMPUTER SIGNAL SIGNAL VOLTAGE PULSES
An Analogy computer are those devices that measure physical quantities. Their operations are based on the conversion of physical quantities, such as pressures, speed, temperature etc to analogue signal voltage by means of transclucers. Unlike digital computers, analogue computer do not have any particular stable state since they process analogue signals that vary continuously. Example of analogue computer are found amongst system that are used in measurement in industries. They are also found metering and monitoring oil flow in pile line. Other examples of analogue machine include speedometer, thermometer, pressure gauge etc.
Size and the kind of functions they can perform. Based on these criteria, computers, are classified thus, main frame, mini computer, and micro computer. The difference between them use to be purely technical, now it is much more a question of price and marketing because their functional capabilities are as over lopping as they are complimentary.
In both size and capacity, main frame are the largest of the three classes of computer. They are the most expensive ad sophisticated and the require specially prepared sites for installation. Owing to their complexity, they are usually operated and managed by specially trained professional, Main frame are designed for large volume of data processing and storage and can support hundreds of remote users at the same time. On account of the features, main frame are used by large business and government organization multinational oil companies, banks etc.
The mini computers is the outcome of the first attempt at making the computer smaller and cheap mini computers were developed about 25 years ago to give some categories of users such as university departments and fairly large companies, computer that did not need full time size and cheapest of the three classes of computers. An important feature of micros is that it is so cheap that individuals can afford to buy them for their personal use.O n account of this micro are also called personal computers (PCs)
In micro computer, the most important feature is that the central processing unit (CPU) is a single integrated circuit know as the brain of the micro computer.
It is responsible for processing data and also controlling and coordinating the entire operations of the micro computer.
1. COMPUTER CRIME.
WHAT IS COMPUTER CRIME.
Computer crime is very technical in nature and huge losses to occur before discovery. Crime is any act of commission or omission believed to be socially harmful to a group and thus forbidden by the designated authority for hat group under treat or punishment state another way or specific element or act of human behaviour which vary in time and place which is considered repayment or harmful enough to be forbidden by the group and this subject to a penalty.
COMPUTER CRIME INCLUDES
1. The physical theft of the computer
2. The unauthorized erasure
3. The illegal erasure
4. The modification of computer information
5. Destruction of computer information
6. Disclosure of computer information.
1. TYPES OF COMPUTER CRIME
There are basically two types of computer crime.
1. Those that are discovered and
2. Those that are not discovered
For instance, in a bank, a computer lack who invade the computer system of a bank a bank can steal money form the bank and used the money to open an account in the same bank. This will be very difficult to detect unless the lack fold them. The crimes that are not discovered for outstrip those that are discovered.
1. COMPUTER FRAUD
FRAUD: Alashi (1998) defined fraud as an art of dishonesty deceit and imposture.
He said hat according to Kirk Patrick (1997) a person who pretend to be something that he is not a fraudster, a snare, a deceptive truck, a cheat and swindler. By extension, fraud will include embezzlement.
Theft or any attempt to steal or unlawfully obtained, mis-use or harm the asset of a business organization.
The nation is today witnessing a metamorphosis in our banking industry.
This together with the fight to face out fraud in our financial institutions justly the indept study of this problems facing the banking industry in particular.
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