Causes of Frauds and forgeries in banks have not only become incessant but have also been on in increase in recent years. Although frauds and forgeries in banks are global phenomena which have consistence growth according to Nigeria deposit Insurance Corporation (NDIC) Annual report for instance it recorded or show caseN360.2 millions in 2008 to N351.9 millions in 2007. The amount involved in fraud in commercial banks N6million in 2009. 

Frauds in banks is clearly unacceptable situation  drastic ought to be done  to gently stem the tide in view of its image implications for the banking industry and the adverse effects it will have on the economy the study emerges in response to this development. In carrying out this research work, questionnaires were distributed to the respondent for their reactions;egually oral interview were also carried out and some text written by eminent scholars were consulted. The researcher believed all these would give enough information for a sound report. This study therefore seeks to identify the causes and effect of fraud and the following findings were made.