This research work was designed to study fraud management in the Nigerian banking industry. The objective of the study is to find more realistic ways and means to minimize the occurrence of frauds in commercial banks. Relevant data for this research work were collected from both primary and secondary source of data. The statistical instrument used in testing the validity of the hypothesis was chi-square. Among the major findings of the study was that bank frauds are committed by bank staff in collaboration with customers. Also, the study found' out that distress in the banking industry does 'not has direct relationship with the occurrence of frauds in banks. Furthermore, the result showed that good management control system, security and inspection do not totally eliminate incidence of bank fraud. The research therefore recommend that understand the causes, methods of fraud, bank must understand the causes, methods and motivation for fraud. Thus, because the causes of frauds and methods employed in fraud very with time, research on fraud should be carried out regularly, to keep track of the development in the field.