Fraud and fraudulent activities affect every business. The issue of fraud poses a challenge to many industries with the banking industry inclusive regardless of the introduction and use of fraud detection technologies. As a result of fraud it has ultimately resulted to the failure of many banks and decline in customer patronage. However, with the development in the field of information and communication technology it has made it has created a form of complexity in the banking industry which has obviously changed the nature of fraud and fraudulent activities. Among the Nigerian industrial sectors today, one can say that the banking industry is the most visible and arouses the most public interest and want of patronage. The banking industry has proven its relevance and importance in the economy of the country which is visible in kits role in financial intermediation, provision of an efficient payment system and facilitation of the implementation of monetary policies. However in spite of its functions and importance to individuals and the country at large it’s very integrity and survivability of these laudable functions have been called into question in view of incessant frauds and accounting scandals. Therefore, as a result of incessant bank fraud that is on the increase, it has discouraged and sends the wrong message to people on the reliability and credibility of the banking industry. Undergraduate students who use the bank to save and make financial transactions especially as regards to school fees and other payments may be skeptical about patronizing the banking industry for any form of transaction for fear of losing their money. And as undergraduate students they have little to save and as such wouldn’t find it enough losing any amount of money whether personal or for a particular purpose. Some undergraduate students even prefers to keep their money with them than depositing it in the bank for the fear of been duped.
In spite of the banking regulation and bank examination by the Central Bank of Nigeria, the supervisory role of the Nigeria Deposit Insurance Corporation (NDIC), and The Chartered Institute of Bankers of Nigeria (CIBN), there is still a growing concern about fraud and other unethical practices in the banking industry which greatly affect undergraduate students banking habit.

BANK FRAUD

Bank fraud is the loss resulting from inadequate or failed internal processes, people and systems, or from external events. It is also those activities undertaken by an individual or company that are done in a dishonest or illegal manner, and are designed to give an advantage to the perpetrating individual or company.
Bank fraud is whenever a person knowingly executes, or attempts to execute, a scheme or artifice to defraud a financial institution; or to obtain any of the moneys, funds, credits, assets, securities, or other property owned by or under the custody or control of, a financial institution, by means of false or fraudulent pretences, representations, or promises.
Fraud is the act of depriving a person dishonestly of something which is his or something to which he is or would or might but for the perpetration of fraud, be entitled. It is an intentional perversion of truth for the purpose of inducing another, relying upon it to part with some valuable thing belonging to him or to surrender a legal right.
A false representation of a matter of fact, whether by words or by conduct, by false or misleading allegation or by concealment of that which deceives and is intended to deceive another so that he shall act upon it to his legal injury. In short it is anything calculated to deceive, whether by a single act or combination or by suppression of truth or suggestion of what is false whether it be by direct falsehood or innuendo, by speech or silence, word of mouth, look or gesture.

INTERNET BANKING

Internet Banking is a type of banking which allows customers to access their financial and banking services via internet world wide web. It’s called an Internet Banking because an Internet bank has no boundaries of brick and mortar and exists only on the internet. However, because of the nature of internet banking it gives internet fraudsters the opportunity to attack customers who are not physically present on the web or even the bank to authenticate transactions. But because of ease and convenience, internet banking has continued to be on the increase.
In other words, internet banking refers to the banking operations, which is done over the World Wide Web. More specifically, Internet banking refers to the deployment over the Internet of retail and wholesale banking services. It involves individual and corporate clients. It also includes bank transfers, payments and settlements, documentary collections and credits, corporate and household lending, and other businesses. It is therefore Internet banking is enhanced by the ability of customers to conduct banking transactions anytime and anywhere, faster and with lower fees compared with using traditional bank branches

BANK FRAUD AND BANKING HABIT

With the increase in bank fraud and fraudulent activities in the country through such means as the ATM, bank cheques, bank mobile applications, security pins etc. it is creating fear in people and lack of trust and reliability in the banking industry and as such affect their banking habit. Students are beginning to resort to the use of “kolo” and daily contributions to an individual rather than transacting with the bank.

HOW TO AVOID BANK FRAUD

Fraud detection and prevention is at the heart of every fraud management system. Detection of fraud is highly complex, and a large percentage of fraud cases are actually detected externally or by accident. However, various approaches have been applied such as lifecycle monitoring and verification which is believed to reduce the incidence of fraud overall. But despite the approaches implored, fraud has continued to gain grounds in the country. Below are some of the ways to avoid bank fraud.

A) SECURE YOUR SECURITY PIN

One of the ways to avoid bank fraud is to secure your pin. Customer services in bank will always tell you whenever they are giving you an ATM that you should secure your pin. Securing your pin here means that you should make sure it is only who knows your pin and no other. Avoid telling anyone not even a family or a close friend your pin because there are case where fraudsters may use your family member to defraud you. So in whatever you do make sure your pin is private to you.

B) ONLY CONSUME INFORMATION PROVIDED BY YOUR BANK

It is a good and a welcomed development theta the bank at times sends out message to their customers warning them that they will never send a message asking for your pin, password or any other sensitive information that has to with your financial account. So be very careful and try to verify from your bank on any information you receive concerning your financial account before acting on it.

C) DO NOT USE THE NAMES PEOPLE CALL YOU AS YOUR PASSWORD

People tend to make it a habit of using their names or numbers popular known to family and friends. This particular act had put a lot of people ion trouble and victims of fraud. It is advised that you use a number or letter known to you alone to avoid any means fraudsters might want to use to defraud you.

D) CONSIDER USING BIOMETRIC ON THE ATM OVER THE ATM CARDS
Automated Teller Machine or automatic teller machine also known as automated banking machine (ABM), cash machine, cash point is a computerized telecommunication device that enables the customers of bank to perform banking transactions without the need of cashier, human clerk or bank teller. In this case it is advised that you use biometric on the ATM on the ATM cards for your transactions.

CONCLUSION

In conclusion, it is known fact that a prominent feature of bank failure which led to the reforms in the banking sector in Nigeria was fraud. This indicates a fundamental problem with fraud investigation and management in Nigerian banks. There is, therefore, need for a comprehensive fraud management scheme to have a holistic view of all the factors involved in fraud occurrence to avoid mistrust of customers in the banking industry.