COMBATING BANKING FRAUD IN NIGERIA: CONTEMPORARY PREVENTION AND SECURITY APPROACHES

Fraud remains one of the most critical challenges confronting the Nigerian banking industry, posing serious threats to financial stability, institutional credibility, and public confidence. The increasing sophistication, innovation, and audacity of fraudsters have heightened the vulnerability of banks, resulting in significant financial losses, operational disruptions, and reputational damage. This paper examines the prevalence of fraud in the Nigerian banking sector, its underlying causes, and its implications for the stability of the financial system. It highlights the role of fraudulent practices in the distress and collapse of several banks, emphasizing the economic and social costs associated with banking fraud. The study further explores the statutory responsibilities of the Nigerian Deposit Insurance Corporation (NDIC) in monitoring, documenting, and combating fraud through regulatory oversight and intelligence gathering. It concludes that effective fraud prevention requires stronger internal control systems, robust regulatory enforcement, enhanced staff integrity, technological innovations, and collaborative efforts among financial institutions and law enforcement agencies. Strengthening these measures is essential for safeguarding depositors' funds, restoring public confidence, and ensuring the long-term sustainability of the Nigerian banking industry.