Organizations in Elhiopia. particularly banking corporations to day are more susceplible tornFraud crime than ever before. This study aims at finding practical means of minimizing thernIncidence of fraud in Erhiopia, both private and governmentowned commercialercial banks. Duringrnthe course of the investigation efforts were made to identifY various causes result bank staffs torncommit fraud,the characteristics shared by most Fraud acts in the sector, means employed inrndefrauding banks and at the same time determine the adequacy and effectiveness of Fraudrndetection and prevention systems employed by banking corporation.rnQuestionnaire survey techinique was employed to seek the respondents' (mallagers, accountants,rnand customer service officers at sample branch banks) perceptions on the all encompassingrnissues of fraud and its management in banking sector. Findings in the first place revealed that sornmany factors contributed to incidence of Falld in the banks amongst which are poorrnmanagement of policies and procedures; inadequate working conditions; bank's staff stayingrnlonger on a particlliar job, and staff feeling Fustrated as a result of poor remunerations. Next tornthis, Faud prevention and detection systems adopted by banks are not effective and adequate t0rnmake effective management on Frauds committed through creating forged checks, opening newrnaccount, money transfer. employment application, etc. Finally, the study offered suggestions asrnto how the problems so identified could be mitigated.