An Assessment of Bank Fraud and its Management in Ethiopia Commercial Banks
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Date
2011-06
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A.A.U
Abstract
Organizations in Elhiopia. particularly banking corporations to day are more susceplible to
Fraud crime than ever before. This study aims at finding practical means of minimizing the
Incidence of fraud in Erhiopia, both private and governmentowned commercialercial banks. During
the course of the investigation efforts were made to identifY various causes result bank staffs to
commit fraud,the characteristics shared by most Fraud acts in the sector, means employed in
defrauding banks and at the same time determine the adequacy and effectiveness of Fraud
detection and prevention systems employed by banking corporation.
Questionnaire survey techinique was employed to seek the respondents' (mallagers, accountants,
and customer service officers at sample branch banks) perceptions on the all encompassing
issues of fraud and its management in banking sector. Findings in the first place revealed that so
many factors contributed to incidence of Falld in the banks amongst which are poor
management of policies and procedures; inadequate working conditions; bank's staff staying
longer on a particlliar job, and staff feeling Fustrated as a result of poor remunerations. Next to
this, Faud prevention and detection systems adopted by banks are not effective and adequate t0
make effective management on Frauds committed through creating forged checks, opening new
account, money transfer. employment application, etc. Finally, the study offered suggestions as
to how the problems so identified could be mitigated.
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Keywords
Commercial bonk, Fraud, Ethiopia