BANKING FRAUD CONTROL SYSTEM

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(A CASE STUDY OF ACCESS BANK PLC)

ABSTRACT

The Nigeria banks of recent have experienced a high level of fraudulent activities, the main objectives of the study is to understand the nature of fraud in Nigeria banks, to identify and look into the causes of fraud in the Nigeria banks and to analyse the extent and effect of fraud in the Nigeria banks and economy in general. Hence the need of fraud control system. This work deals with the designing of a fraud control system that will help in tracking fraudulent transactions in banks. The design and development of this system, that handles fraud control in the bank is associated with Visual basic as the front-end and Microsoft access database as the back-end. Finally, this research work was able to achieve a system with high security, easy transactions for customers, easy data update and easy tracking of fraudulent transaction.

TABLE OF CONTENT

Cover Page i

DECLARATION ii

CERTIFICATION         iii

DEDICATION     iv

ACKNOWLEDMENTS v

ABSTRACT        vi

TABLE OF CONTENT vii

LIST OF TABLES         x

LIST OF FIGURES       xi

CHAPTER ONE  1

1.1     INTRODUCTION         1

1.2     STATEMENT OF THE PROBLEM 2

1.3     OBJECTIVES OF THE STUDY      3

1.4     SIGNIFICANCE OF STUDY 4

1.5    METHODOLOGY         5

1.7     SCOPE OF THE STUDY       5

1.8     LIMITATION OF STUDY      5

1.9     DEFINITION OF TERMS      6

CHAPTER TWO 7

LITERATURE REVIEW        7

2.2     NATURE AND TYPES OF FRAUD IN BANKS         9

2.2.1    COMPUTER FRAUD.         10

2.2.2   ACCOUNT FRAUDS. 15

2.2.3    CHEQUE FRAUD:     16

2.2.4   COUNTERFEIT SECURITIES       16

2.2.5    FRAUDULENT TRANSFERS AND WITHDRAWALS     16

2.3     CAUSES OF FRAUD IN NIGERIA BANKS     17

2.3.1    BAD MANAGEMENT        17

2.3.3    STAFF NEGLIGENCE        17

2.3.4    INTERNAL CONTROL       17

2.3.5    POOR SECURITY ARRANGEMENTS FOR DOCUMENTS.     18

2.3.6    NEGLIGENCE BY CUSTOMERS.         18

2.3.7    USE OF SOPHISTICATED ACCOUNTING SYSTEM.     18

2.3.8    DELAY IN PROCURING DOCUMENTS.       19

2.3.9    LACK OF CO-OPERATION AMONG BANKS        19

2.4     TECHNIQUES OF CONTROLLING FRAUD IN BANKS   19

2.5     MEASURES FOR CURBING FRAUD IN BANKS     20

2.6     EFFECTS OF FRAUD ON NIGERIA BANKS  22

CHAPTER THREE       24

ANALYSIS AND DESIGN    24

3.1 METHODOLOGY  24

3.2     ANALYSIS         24

3.2.1  ANALYSIS OF THE EXISTING SYSTEM        24

3.2.2 ANALYSIS OF THE NEW SYSTEM        24

3.2.2.1. ADVANTAGES OF THE NEW SYSTEM      24

3.2.2.2. DISADVANTAGES OF THE NEW SYSTEM         24

3.3     DESIGNS   24

3.3.1 DATABASE DESIGN   25

FIG 3.3.2 ENTITY RELATIONSHIP DIAGRAM        25

FIG: 3.3.2.1 ACCOUNT ER DIAGRAM   25

FIG: 3.3.2.2 SECURITY ER DIAGRAM   25

SECURITY:         25

FIG: 3.3.2.3 TRANSACTION ER DIAGRAM    26

TRANSACTION 26

TABLE 3.1 ACCOUNTTABLE       26

Table: 3.2 SECURITY TABLE        26

Table: 3.3 TRANSACTION TABLE          27

FIG: 3.3.2.5 DATABASE TABLE RELATIONSHIP DIAGRAM   27

CHAPTER FOUR         28

PROGRAM IMPLEMENTATION   28

4.1     REASONS FOR CHOICE OF LANGUAGE       28

4.2 DOCUMENTATION        28

4.2.1 ALGORITHM      28

4.2.2 ACCOUNT CREATION/CLOSURE          29

4.2.3 DEPOSIT/WITHDRAWAL MODULE       29

4.2.4 FUNDSTRANSFER MODULE        30

4.2.5 BALANCE INQUIRY    30

4.2.6 SECURITY MODULE   30

4.3.1 FLOWCHART     32

FIG: 4.3.2 MAIN MODULE FLOWCHART       33

FIG 4.3.3 BALANCES INQUIRY FLOWCHART        34

FIG 4.3.4 TRANSFER FLOWCHART      35

FIG 4.3.5 ACCOUNT CREATION/CLOSURE   36

4.4   DISCUSSION OF RESULTS   37

4.5   SOURCE CODE   37

4.6  SAMPLE OUTPUT         37

CHAPTER FIVE 38

SUMMARY, CONCLUSION AND RECOMMENDATION  38

5.1     SUMMARY         38

5.2     CONCLUSION    39

5.3     RECOMMENDATION 40

REFERENCES    42

APPENDIX A      43

APPENDIX B      52

LIST OF TABLES

TABLE 3.1 ACCOUNTTABLE       26

Table: 3.2 SECURITY TABLE        26

Table: 3.3 TRANSACTION TABLE          27

LIST OF FIGURES

FIG 3.3.2 ENTITY RELATIONSHIP DIAGRAM        25

FIG: 3.3.2.1 ACCOUNT ER DIAGRAM   25

FIG: 3.3.2.2 SECURITY ER DIAGRAM   25

FIG: 3.3.2.3 TRANSACTION ER DIAGRAM    26

FIG: 4.3.2 MAIN MODULE FLOWCHART       28

FIG 4.3.3 BALANCES INQUIRY FLOWCHART        28

FIG 4.3.4 TRANSFER FLOWCHART      39

FIG 4.3.5 ACCOUNT CREATION/CLOSURE   30

FIG 4.3.6 DEPOSIT/WITHDRAWALFLOWCHART………………31

CHAPTER ONE

1.1     INTRODUCTION

          Over the years, several efforts have been made to alleviate the burden on teachers when it comes to result computation/processing. Data processing is defined as the entire process of converging or manipulating data into definite meaningful information. The information obtained at the end of the process is the result. Therefore result processing can be seen as a continuous process of converting data (which can be scores, grade points, credit units etc) into definite meaningful information, which can either be statement of result. The end point of data processing activity by the administrative unit is the product of basic documents and information (statement of result and transcript) from basic data (which can be students’ scores, course credit unit, grade point etc) for managements’ use.

          In educational institutions, the result produced information the management about the performance of each student in various courses. These results obtained are used to check the student’s level of understanding in the entire subject taught. In the course of this research, an intensive investigation was carried out on how physics and industrial physics department performs its result computation and transcript generation. From my findings, it appears that the current method adopted needs improvement. Introduction of computer in the system will do the much required magic in result computation. Structured system analysis and design methodology were applied to arrive to the development of the new system. Also, visual BASIC programming language 6.0 will be used to develop the required software

          It is an established fact that after every assessment examination or research work, a result must be obtained. In any academic environment, there is need to have results to be aware of the students performance and to generate transcripts whenever the need arises.

          To achieve this in higher institutions, it involves the registration of courses and students personal data examination scores, computation of result, transcript generation, records up dating and so on. However, the problem is how to carry out the theses activities presently, the result processing and transcript generation in computer science department is performed manually. Workers are employed to handle various stages of the process, such as registration of students, result computation and   transcript generation. The introduction of computer in result processing and transcript generation will reduce the burden of manual processing to the barest minimum.

1.2     STATEMENT OF THE PROBLEM

          The students examination result processing system and generation are done manually long before now. The manual method of result processing and generation from my investigation one of the deficiencies of internet services and student alert system over fixed and mobile telephony is the availability of service: internet services are available only when connected. The results of our research carried out before the development of the e-mail Alert System show that internet users receive on average five to six e-mails every day and 82 percent of these users in the course of their internet connection check their mail box first. Thus there is a clear demand for the development of e-mail alerting systems. The system is computer telephony integration (CTI) application that integrates advantages of telephony and the internet by connecting e-mail and phone services. The EMA system will inform users of the arrival of new e-mail messages, which is convenient if you don’t allow, e-mail servers access from outside. On the other side are internet or service providers with a large number of users.

          There is no such an alert system where students can receive notifications on any latest news. They periodically need to check the website for any updates. This project is a solution for the above said problems.

1.3     AIMS AND OBJECTIVES OF THE STUDY

          In this work, the primary objective is to computerize the result processing/alert and transcript generation of computer science department computer science. Also, only authorized user(s) gain access to the result. This is achieved by introducing password to protect and   limit access to students result.

1.4     SIGNIFICANCE OF STUDY

          Research carried out in computer science department shows that results are still being processes manually as well as transcript generation. This leads to various problems, which include;

•        Insecurity of results

•        Students not being aware of release of results

•        Duplication of results

•        Loss of results when files are being carried around.

•        Wrong calculations during computation

•        Omission of result.

•        This project work will achieve the following:-

•        Increase in efficiency

•        Easy detection and correction of errors

•        Reduce pressure of work on exam officers

•        Makes computation less labour intensive. Hence, the need for computerization of result processing and transcript generation for physics department cannot be over emphasized.

1.5 METHODOLOGY

          Analysis of a present involves a detailed study of the current system, leading to the specification of a new system. In order to achieve the internationally accepted software engineering model that is structured system analysis and design methodology (SSADM) was adopted. The information obtained from the mentioned department clearly justifies the need for the development of a new system. These information were obtained using these methods of data collection which

–        interviewing of departmental representatives

–        study of procedural manuals

–        evaluation of forms

1.7     SCOPE OF THE STUDY

          This project work covers the registration of courses and the recording of student examination scores as well as processing the scores in order to general result and alert the students for the department of computer science.

1.8     LIMITATION OF STUDY

          This project was faced with a number of restricting factors which made the work impossible to get beyond this scope. The most pressing factors were.

i.        Lack of finance

ii.       Epileptic power supply

iii.      Inadequate supply of data

iv.      Inadequate time for the project work.

1.9     DEFINITION OF TERMS

BANK: This is a financial institution legally established, were money and other valuables are kept for security purpose.

Fraud: Fraud which known as swindle is a deliberate misrepresentation which causes another to suffer damage usually monetary losses.

Fraudster(s): A person or group of person who pretends to have qualities, abilities etc that they do not really have in other to deceive other person.

Computer: An electronic device that accepts processes store and output data at high speed according to programmed instruction.

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