Banks serve as an indispensable part of the financial system, performing a crucial role in intermediation which results in a flow of financial resources in an economy. However, the recurring nature of fraud has hindered the effective performance of Deposit Money Banks (DMBs) in Nigeria. The general objective of this study is to assess the effectiveness of forensic tax audits as a panacea for preventing fraud in Nigerian Deposit Money Banks. The survey research method was adopted in this study. The sampling technique used for the study was simple random sampling. Data were collected using both primary and secondary sources. Regression analysis was used in testing the research hypothesis. Based on the findings of the study, it is concluded that forensic audit taken as the independent variable significantly affects fraud prevention by the regression model which shows a good level of prediction and that 77.9% change in fraud prevention is caused or predicted by forensic audit. Therefore, the variable added significantly to the prediction of fraud prevention, meaning that forensic audit and fraud prevention are positively correlated. The study recommends that the management of deposit money banks should undertake regular forensic audits of their operations to effectively prevent fraud that is currently bedeviling the Nigerian financial sector.