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Given the rampant headline revelations of widespread fraud perpetrated in Nigerian public service organizations in recent times, this study addresses a topical subject that commands urgent attention, understanding and intervention. Using a survey design and case approach, a cross-sectional study was carried out on a sample of 54 systematically selected public service organizations spread across the South-South geopolitical region of Nigeria. The study showed that the fraud risk reduction strategy deployed in Nigerian public service organizations is not effective in reducing the overall level of employee fraud. The study showed that auditor’s monitoring strength is low. It also found that the prevailing reward and compensation system does not facilitate reduction of incentive for employee fraud. These results point to a need to review, strengthen and make more dynamic and responsive the current fraud risk reduction strategy used.  Key words: employee fraud, organizations, Nigeria.

EFFECT OF FRAUD RISK REDUCTION STRATEGY ON THE LEVEL OF EMPLOYEE FRAUD IN NIGERIAN PUBLIC SERVICE ORGANIZATIONS