The study examined the effect of fraud on bank performance in Nigeria. The specific objectives were to: investigate the relationship between the number of frauds and bank performance in Nigeria, assess the relationship between the amounts lost to frauds and bank performance in Nigeria and to examine the relationship between the numbers of staff involved in fraud loses and bank performance in Nigeria. The study utilizes secondary sources of data extracted from the Nigerian Deposit Insurance Corporation (NDIC) Annual Report and CBN Statistical Bulletin from 1994 to 2020. Statistical methods such as descriptive analysis, Pearson correlation and OLS regression techniques were employed in the evaluation of the data. The result of the hypotheses revealed number of fraud cases as well as the total amount lost to fraud had a positive and significant impact on bank performance while the total number of staff involved in fraud was found to be negative and significant on deposit money banks performance in Nigeria. The study recommended that CBN and NDIC should encourage DMBs to always report cases of fraud, this can be done through creation of a fraud “hotline” where the public can call to complain or report fraud cases with appropriate rewards that will incite more compliance. Management of banks should train and retrain staff of Nigerian banks in fraud prevention and control. Such training should include a comprehensive review of legal and regulatory guidelines that will limit fraud activities.