REPUTATIONAL RISK IMPACT OF INTERNAL FRAUDS ON BANK CUSTOMERS IN NIGERIA

Fraud in the financial sector is a growing business for fraudsters using increasingly innovative and creative ways of targeting any perceived weaknesses in the banks and credit granting systems. Fraudsters have become ever more sophisticated, which means that fraud prevention measures need to constantly evolve to ensure they are capable of handling the threat. The fight against fraud is of crucial importance to financial service institutions. Not only does it affect their business, but it also has a significant impact on consumers in particular and the economy at large. Using a case study and historical approach and relying heavily on secondary sources of information, this study among others found a horde of laxity, inconsistencies and knowledge gaps among practitioners, thereby creating loopholes with which the fraudsters commit their nefarious deeds. There is also the absence of the right policy framework and laws to coherently safeguard lenders and borrowers. The study recommends a stiffer control measures within all financial organizations in the country as well as the enactment of enabling laws by the government to checkmate these ugly incidence