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The Nigerian banking industry which is the back bone of Nigeria economy is one of the most profitable of higher performance and could achieved better result in output and obligation to the society. To realize this, the banking industry will have to perform lending role that can reinstate the economy. The larger society expects greater accountability, fairness, transparency and effective intermediation from banks, ensuring that they carry out their responsibilities with sincerity of purpose and devoid of fraud which is an important ingredient for gaining public trust and goodwill. The extent to which fraud is prevalent in the banking sector, the nature and causes of bank frauds and proffering possible solutions to the problem is in essence what this research work is all about. Consequently, the study used interview method which is a primary source of data by interviewing the managers, supervisors, employees, customers and regulatory bodies of banks in Nigeria. Based on the methodology used in the study, the following findings were revealed that when there is a weak internal control system, there is tendency for fraudulent activities to occur and also, the kind of management system has a role to play in the sense that if there is a weak management system, it will not be easy to control and manage fraud. Also, from the above findings, the study recommends that there should be segregation of officers duties, good organizational procedure should be in place, proper attention should be paid to finance, attractive pay packages in form of incentives should be given to staffs and good corporate governance should be established.
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