ASSESSMENT OF FRAUD DETECTION, PREVENTION AND CONTROL IN THE BANKING SECTOR IN NIGERIA

The integrity of the Nigerian banking sector is constantly threatened by the increasing sophistication of financial fraud, which has evolved alongside the nation's rapid digital transformation. This study provides a comprehensive assessment of fraud detection, prevention, and control mechanisms within the Nigerian banking industry, focusing on the period between 2021 and 2026. Using a descriptive research design, the study analyzes both primary data from banking professionals and secondary data from the Nigeria Deposit Insurance Corporation (NDIC) and the Central Bank of Nigeria (CBN). The assessment focuses on the efficacy of traditional internal controls versus modern technological interventions like Artificial Intelligence (AI), Machine Learning (ML), and Biometric Authentication. Findings indicate that while the implementation of AI-driven monitoring has significantly improved detection speeds and flagged over ₦30 billion in suspicious transactions in 2025 alone, social engineering and "insider-led" collusion remain the most significant vulnerabilities. The study concludes that technological upgrades must be matched by robust human resource policies and enhanced customer literacy to create a truly resilient "zero-trust" banking environment. Recommendations include the mandatory integration of the Bank Verification Number (BVN) with global forensic databases and the adoption of decentralized ledger technologies (Blockchain) to ensure immutable audit trails.