Financial Institutions Training Centre, FITC, has revealed that banks in Nigeria recorded 24,232 fraud cases from mobile fraud, computer/web fraud, and Point of Sale fraud between January and June 2023.
This was disclosed in the FITC report titled, “Reports of Fraud and Forgeries in Nigerian Banks (Quarter 2, 2023” putting the total amount involved at N12.33bn.
The FITC, however, said in the second quarter of 2023, it received a total of 71 returns on cases of fraud and forgery from 24 deposit money institutions.
It said, “A closer analysis shows that 24 returns were received in April, while 23 returns were received in May, and 24 returns were received in June.”
In the first quarter of 2023, a total of 12,553 fraud cases were recorded, by the second quarter of 2023, it dropped to 11,679.
The report revealed that mobile fraud, computer/web fraud, and P0S-related fraud were the three most prevalent types of fraud, and this trend persisted in Q2 2023, the firm noted.
“The data reveals a significant 276.98 per cent increase in the total amount involved in fraud cases during Q2 2023 compared to the previous quarter.
“The sum increased from N2.58bn to N9.75bn. Likewise, for amount lost there was a substantial increase of 1125.03 per cent from N472m in Q1 2023 to N5.79bn in Q2 2023.”
In Q2 2023, there was a 6.40 per cent decrease in outsider involvement in fraud cases, with the number dropping from 12,351 cases in the previous quarter to 11,561 cases, however, staff involvement in fraud increased by 22.22 per cent, rising from 72 cases in Q1 to 88 cases in Q2 2023, the firm said.
Twenty-six appointments have been terminated because of fraudulent activities in the first half of the year, and more money was lost to fraudulent loans (N6.03bn) in Q2 2023.
It added, “It was followed by the Computer/Web fraud category at N1.47bn (15.10 per cent). Mobile Fraud came next at N751m (7.7 per cent), and fraudulent withdrawals amounted to N663m (6.79 per cent).”
ATMs, online platforms such as web and mobile banking, bank branches, and point-of-sale terminals were the channels for fraudulent activities in Q2 2023.
“Additionally, the amount lost also saw a substantial rise, increasing from N472m in Q1 2023 to N5.79bn in Q2 2023, which corresponds to a 1125.03 per cent increase. This increase might be attributed to the fact that banks were liable for the losses incurred and had to make refunds to customers.”
The FITC, however, urged Nigerian banks to strengthen their security protocols and systems to prevent unauthorised access to customer accounts and sensitive information.
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