Abstract:
Fraud in the rural banking industry before recapitalization efforts and even now is at an alarming rate. It has caused many banks to collapse, and many investors and depositors funds have been locked in these collapsed banks. Infact it has prevented many banks from achieving their goals and many businesses has gone into liquidation. Honestly speaking it has become a cankerworm that is eating deep into the financial sector of the Ghanaian economy. This called for the need for this study and the purpose of this study therefore is to identify the causes of fraud, measure its impact and identify means of controlling it. The study is a survey research and questionnaire was used for the collection of primary data while libraries, journals, write-ups, seminar papers and books by popular authors were used for secondary data.
Description:
Fraud can be seen as the intentional misrepresentation, concealment, or omission of the truth for the purpose of deception or manipulation to the financial detriment of an individual or an organization (such as a bank) which also includes embezzlement, theft or any attempt to steal or unlawfully obtain, misuse or harm the asset of a bank. (Adeduro, 1998 and, Bostley and Drover 1972). Fraud and its management have been the main factor in the distress of banks, and as much as various measures have been taken to minimize the incidence of fraud, it still rises by the day because fraudsters always device strategic ways of committing fraud.
