IMPACT OF FORENSIC ACCOUNTING TECHNIQUES ON FRAUD DETECTION AND PREVENTION IN THE BANKING SECTOR
Keywords:
Forensic Accounting, Fraud Detection, Fraud Prevention, Digital Surveillance, Data Mining, Banking Sector, Nigeria.Abstract
This research examines how the methods of forensic accounting can be used in detecting and preventing fraud cases among Nigerian deposit money banks. The study was conducted using five major Nigerian banks known for their extensive operations and exposure to fraud-related risks. To test the hypotheses formulated, multiple regression analysis was used to find out the relationship between forensic accounting methods, forensic tools and the results of managing fraud. Cronbach’s alpha of 0.87 was used to ascertain reliability of the instrument. Results of the study suggest that forensic accounting methods are highly effective in detecting fraud considering that 81.4% of the difference between the levels of fraud detection across the banks can be attributed to the use of forensic accounting methods. Furthermore, finding reveals that forensic accounting methods and mechanisms play a vital role in enhancing fraud detection and prevention, transparency, accountability, and financial stability in the Nigerian banks. On the basis of the findings, this study proposes that forensic technologies should be continually invested in, the professional growth of the fraud detectors, and the forensic audit procedures introduced in every banking activity to effectively fight frauds.References
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