Fraud is an epidemic dimension that has infiltrated the financial sector as well as the entire Nigerian economy. Its devastation reveals itself in the deterioration of bank balance sheets as well as economic backwardness. Measures to detect and eradicate fraud in the financial sector appear to be ineffectual, despite the fact that fraudulent practices have been on the rise in recent years. As a result, this study assesses the numerous obstacles of detecting and preventing fraud in Nigeria's banking system. According to the findings of the descriptive research, lack of proper motivation is not a major source of fraud in banks; rather, looting of funds by bank managers and directors is the most common type of fraud in Nigeria. Furthermore, it is suggested that the government improve existing anti-corruption authorities and increase their financial independence. Managers and directors implicated in fund looting should be prosecuted to act as a deterrence to future fraudsters. Furthermore, before hiring, bank employees should be thoroughly checked to ensure their morality and honesty. A sufficient internal control mechanism should be built to function as a check and balance among bank employees. There is also a need to strengthen anti-graft authorities in order to appropriately complement the Central Bank of Nigeria's (CBN) efforts to reduce the frequency of bank fraud.