Effect of Forensic Accounting on Financial Fraud Detection in Selected Deposit Money Banks in Nigeria

This study examines the effect of forensic accounting on financial fraud detection in selected deposit money banks in Nigeria. In recent years, cases of financial fraud in the Nigerian banking industry have continued to increase, creating serious challenges for management, investors, and regulators. Traditional auditing methods alone have not been effective enough in detecting and preventing these fraudulent practices. As a result, forensic accounting has gained attention as an important tool for uncovering and reducing financial crimes in banks. The study adopted a survey research design. Data were collected through questionnaires administered to accountants, auditors, and compliance officers in selected deposit money banks in Nigeria. The data collected were analyzed using descriptive statistics and regression analysis. The findings revealed that forensic accounting techniques significantly improve the detection and prevention of financial fraud. It was also discovered that the competence of forensic accountants and the availability of modern forensic tools greatly influence the success of fraud detection in banks. The study concludes that forensic accounting has a positive and significant effect on financial fraud detection in deposit money banks in Nigeria. It is recommended that banks should establish forensic accounting departments, train their staff in forensic investigation techniques, and adopt modern technologies to strengthen their fraud detection and prevention systems.