Forensic Accounting and Fraud Detection in Nigerian Deposit Money Banks: A Study of Selected Banks in Enugu State

The escalating incidence of financial fraud within Nigerian deposit money banks has generated increasing concern among regulators, shareholders, and the general public, highlighting the need for more rigorous fraud detection mechanisms. This study examined the role of forensic accounting in fraud detection within selected deposit money banks operating in Enugu State, focusing on three commercial banks with regional headquarters in the state. The study was anchored on the fraud triangle theory, which attributes fraudulent behavior to pressure, opportunity, and rationalization. A survey research design was adopted, with a population of 312 internal auditors, compliance officers, and fraud examiners drawn from the three selected banks. A sample of 175 respondents was selected using systematic random sampling. A structured questionnaire was administered, and data were analyzed using Pearson correlation and ordinary least squares regression. Findings indicated that the deployment of forensic accounting tools, including data mining and digital investigation techniques, was significantly associated with reduced incidences of bank fraud. The study concluded that forensic accounting serves as a potent mechanism for early fraud detection and prevention in banking institutions. It was recommended that bank management should institutionalize forensic accounting units and invest in continuous professional development for fraud examiners to strengthen the detection capacity of internal control systems.

Keywords: Forensic accounting, fraud detection, deposit money banks, fraud triangle theory, internal control