FRAUD PREVENTION

The study examined the effect of auditing practices on fraud prevention in the Nigerian
banking sector, adapting the model of Internal Control System and Fraud Prevention of
Quoted Financial Services Firms in Nigeria: A Smart PLS-SEM Approach (Ogwiji &
Lasisi, 2022) as its conceptual framework. The study focused on how internal control
systems, fraud risk assessment, control testing, and substantive testing influence fraud
prevention among Deposit Money Banks. A survey research design was adopted, and
data were collected through structured questionnaires administered to 384 respondents
across the Nigerian banking industry. The data were analyzed using descriptive statistics, correlation, and Ordinary Least Squares (OLS) regression. Results revealed that all four
auditing dimensions had significant positive effects on fraud prevention, with substantive
testing showing the strongest influence. The regression model (R² = 0.734, F = 159.386, p
< 0.05) confirmed that auditing practices collectively explained 73.4% of the variation in
fraud prevention. The study concludes that effective auditing mechanisms are essential
for reducing fraudulent activities and enhancing financial integrity in Deposit Money
Banks, and recommends strengthening internal controls, continuous risk assessments, technology-driven audit processes, and auditor independence to ensure sustainable fraud prevention in Nigeria’s banking sector

This study investigates the role of blockchain technology in claims management and fraud prevention within Nigeria’s insurance sector. The study adopts a secondary data approach, relying on published reports, regulatory documents, and academic literature covering the period 2015–2024. Data were analyzed using descriptive and inferential techniques to evaluate trends in adoption, fraud prevention, claims efficiency, and operational challenges. The findings reveal that blockchain adoption in Nigeria’s insurance sector remains relatively low, with less than 30% of firms integrating blockchain or smart contracts as of 2024. Nevertheless, adoption has increased gradually, particularly following the introduction of the National Blockchain Policy (2023). Results further show that blockchain has enhanced transparency and reduced fraudulent claims by providing immutable records and enabling interfirm data sharing. Claims efficiency has also improved significantly, with blockchain-enabled firms reducing average processing times from 90–120 days to 30–45 days. Despite these benefits, adoption is constrained by infrastructural deficits, high costs, shortage of expertise, data privacy concerns, and regulatory uncertainty. The study concludes that blockchain technology offers significant opportunities to strengthen Nigeria’s insurance sector through fraud reduction, efficiency gains, and improved trust. However, realizing its full potential requires supportive regulation, investment in digital infrastructure, cost-sharing adoption models, and capacity building in technical expertise. The study is limited by its reliance on secondary data, which restricts the depth of empirical validation. Future research should integrate primary data collection and comparative studies across African markets to expand understanding of blockchain adoption in insurance

One of the major challenges Nigerian banking industry is facing today is how to curb fraud occurrence. Therefore, the study investigated the effects of internal control system on fraud prevention in Nigerian banking sector. The study emphasis was on the adequate of internal control system in the area of risk management, control supervision, control environment and information management and technology for fraud prevention. To evaluate the effectiveness of the control systems, survey research design was employed. The population of the study consist of the senior staff in the twenty two (22) commercial banks in operations in Nigeria. The instrument used for the study was structured questionnaire. The research questions were answered and the hypotheses generated were tested using statistical package for Social Sciences (SPSS). Findings showed a positive and significant relationship between internal control system and fraud prevention. A positive and significant relationship between risk management, control environment, information management and technology on fraud prevention. However, the study found a positive but non- significant relationship between control supervision and fraud prevention. The study recommended a proactive risk management among banks. Special trainings for senior staff on red flags to fraud occurrence and best approach to handle them. Banks must invest heavily in anti-fraud software and latest hardware gargets that can create awareness of impeding fraud for both staff and customers and build a strong resistance to protect bank database. Nigerian banks must fortify its internal control system to meet the realities of today; this will help to eliminate all loopholes and gaps which arise due to changes in procedures, practices, and technology and government policies that have impacts on banking industry.

This study investigates the effect of internal control mechanisms on fraud prevention among listed companies in Nigeria, focusing on four components of the COSO framework: control environment, risk assessment, information and communication, and monitoring. A descriptive survey research design was adopted, and data were collected from 384 respondents across listed firms in Edo State using a structured questionnaire. Descriptive statistics, correlation analysis, variance inflation factor (VIF) tests, and multiple regression analysis were employed to examine the relationships between the independent variables and the dependent variable. The findings revealed that control environment, risk assessment, information and communication, and monitoring each had significant positive effects on
fraud prevention, with all variables collectively explaining 57.2% of the variation in fraud prevention outcomes. These results underscore that strong ethical leadership, systematic risk identification, transparent communication, and continuous monitoring significantly enhance fraud deterrence. The findings align with Agency Theory, which emphasises the role of governance structures in mitigating opportunistic behaviour, and with Deterrence Theory, which highlights the importance of certainty and consistency in discouraging fraud. Social Norms Theory also provides complementary insights, showing that awareness and shared values foster compliance with anti-fraud practices. The study concludes that internal controls are not merely regulatory requirements but strategic mechanisms that safeguard corporate assets and promote stakeholder trust. It recommends that listed companies strengthen ethical standards, integrate risk assessment frameworks, enhance whistleblowing and reporting systems, and adopt technology-enabled monitoring to improve fraud prevention. Regulators are encouraged to intensify oversight and ensure compliance with internal control standards.