Impact of Internal Control Systems on Fraud Prevention in Deposit Money Banks in Nigeria

Fraudulent practices continue to threaten the stability and credibility of the Nigerian banking industry despite ongoing regulatory reforms and technological advancements. This study examined the effect of internal control systems on fraud prevention in selected Deposit Money Banks (DMBs) in Nigeria. Specifically, the study evaluated the influence of risk assessment, monitoring and evaluation, and information and communication systems on fraud prevention. A quantitative research design was adopted, and primary data were collected through structured questionnaires administered to senior staff, auditors, accountants, and compliance officers of selected banks in Kaduna State. Data were analyzed using descriptive statistics, correlation analysis, and multiple regression techniques with the aid of SPSS. The findings revealed that risk assessment, monitoring and evaluation, and information and communication systems significantly and positively influence fraud prevention in Nigerian DMBs. The study concluded that effective internal control systems strengthen organizational accountability, reduce opportunities for fraudulent practices, and improve operational efficiency within the banking sector. The study recommends continuous monitoring of internal control procedures, periodic fraud risk assessment, staff training, and investment in modern communication and risk-management technologies to enhance fraud prevention capacity in Nigerian banks.