Chapter One — 1.1 Background to the Study

In recent years, Fraud Detection and Prevention has emerged as a critical factor shaping profitability of listed firms across organizations operating in and around Selected Deposit Money Banks in Nigeria. As institutions grapple with the pressures of globalization, regulatory reform, and shifting stakeholder expectations, understanding how fraud detection and prevention relates to profitability of listed firms has become an important area of both scholarly and practical concern.

Selected Deposit Money Banks in Nigeria presents a useful setting for examining this relationship precisely because the conditions there — structural, regulatory, and behavioural — differ from those typically assumed in the broader literature, most of which draws on evidence from more developed economies.

1.2 Statement of the Problem

While fraud detection and prevention is widely discussed in policy and industry circles, empirical evidence on its actual effect on profitability of listed firms within Selected Deposit Money Banks in Nigeria remains sparse and, in places, contradictory. This lack of localized, rigorous evidence makes it difficult for decision-makers to know with confidence whether current approaches to fraud detection and prevention are helping or hindering profitability of listed firms — a gap this study sets out to close.

1.3 Objectives of the Study

1. To examine the effect of Fraud Detection and Prevention on profitability of listed firms in Selected Deposit Money Banks in Nigeria.
2. To assess the extent to which fraud detection and prevention influences profitability of listed firms within the study area.
3. To identify the challenges associated with fraud detection and prevention in relation to profitability of listed firms.
4. To recommend strategies for optimizing fraud detection and prevention in order to improve profitability of listed firms.

1.4 Research Questions

1. What is the effect of fraud detection and prevention on profitability of listed firms in Selected Deposit Money Banks in Nigeria?
2. To what extent does fraud detection and prevention influence profitability of listed firms within the study area?
3. What challenges are associated with fraud detection and prevention in relation to profitability of listed firms?
4. What strategies can be adopted to optimize fraud detection and prevention in order to improve profitability of listed firms?

1.5 Significance of the Study

This study is significant to a range of stakeholders. For policymakers and regulators, the findings offer evidence to guide the design of frameworks that support healthier outcomes around profitability of listed firms. For managers and practitioners within Selected Deposit Money Banks in Nigeria, the study provides practical insight into how fraud detection and prevention can be better managed. Finally, it contributes to the academic literature on accounting by extending existing knowledge into a specific empirical context, and offers a reference point for future researchers.

1.6 Scope of the Study

In terms of scope, this PhD study confines itself to Selected Deposit Money Banks in Nigeria, focusing specifically on how fraud detection and prevention relates to profitability of listed firms within that setting. Findings are interpreted within these boundaries rather than as universal claims applicable to every organization or market.