EFFECT OF FRAUD ON THE PERFORMANCE OF AN ORGANIZATION

ABSTRACT This research examine the effects of fraud on the growth and development of an organization.Theconcept fraud is a term known in all works and cranny in Nigeria.Fraud has eating deep into thefabrics of Nigerian society,mostly in this present 21st Century.Organizations are key drivers ofeconomic growth in many economies of the world today.For instance,in some countries in Asialike Indonesia,Singapore and Japan just to mention a few,Organizations have contributedsignificantly to the Gross Domestic Product (GDP)of such countries.It was reported by theNigeria Deposit Insurance Corporation (NDIC)that "Banking Industry has lost billions of nairato fraudulent activities,indicating a continuing increase in banking fraud" in the present 21st centmy in Nigeria. The broad objective of this study is to examine the effect of fraud on the growth anddevelopment of an orgnanization. This research work was conducted on some selectedorganization in Lagos State which are;Honeywell Group,Access Bank pic.And Jumia Travel.The study population shall consist of staff of the selected organisations in Lagos State totaling200.The method employed in the collection of data include the administration of questionnairesand case studies for the research. The sample size is 133.The data collected was codeddata entrydone into a computer using SPSS. Quantitative data was generated. The study found out thatinternal control system affect organisation fraud management which is caused failure of themanagement to establish a standard internal control system. The study concludes that internalcontrol systems rest mostly influence organisation fraud management,for a control system to bedescribed as effective,control policies and procedures must not be under the influence of oneperson.The following suggestions based on our research findings to reduce fraud in organizations.One way by which fraud can be minimized is to design an effective and efficient accounting system,Organizations should pay living wages:wages that can sustain employees and their families.Organizations should have plans for their employees during retirement. Keywords: Fraud. Economic Growth,GD,NDIC,Banking Industry,Organizations