Access, Zenith, UBA, Other Banks Sack 93 Workers over N10.7 Billion Insider Fraud
- Nigerian banks recorded about 318 cases of insider fraud, accounting for a loss of N10.7 billion in the last year
- One of the old-generation banks reported that a staff member stole N44 billion within two years
- A report said the top three most common forms of fraudulent activity include computer/web, mobile, and PoS-related fraud
Legit.ng’s Pascal Oparada has reported on tech, energy, stocks, investment, and the economy for over a decade.
Nigerian banks dismissed about 93 employees for fraud-related cases last year.
Fraud losses of about N10.7 billion were reported in the Nigerian banking industry between 2023 and 2024.
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Bank staff steals N44 billion in two years
Data from the Financial Institutions Training Centre (FITC) disclosed that Nigerian banks recorded about 318 cases of staff collusion in fraud during the period under review.
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Per the report, internal fraud in the Nigerian banking system has risen in recent years.
According to a BusinessDay report, a staff member of a tier-1 bank reportedly stole N44 billion over two years.
In a letter to the Lagos state police commissioner, the bank said it drew the state police command's attention to fraudulent transactions within and outside the bank. It requested the police set up an investigation to unravel the circumstances behind the fraud and apprehend the culprits.
Nigeria’s central switch system, the Nigeria Interbank Settlement System (NIBSS), recently noted that fraud via internet banking rose by 325% between 2022 and 2023 due to a commercial bank's N2.4 billion internal fraud on corporate accounts.
Insider fraud cases rise to 318
Reports also say about 74,978 fraud cases were recorded in the past year.
Also, insider fraud involvement amounted to 318 cases, and outsider involvement was 67,712 during the review period, showing the rising threats from external sources on the financial system.
FITC received its data from 24 commercial banks and financial institutions.
Top three sources of fraud
The report said the top three most common forms of fraudulent activity include computer/web, mobile, and PoS-related fraud.
Experts believe that fraud cases have surged recently due to the massive adoption of digital payment channels and platforms.
In its fraud report for 2023, NIBSS revealed that fraudsters successfully scammed 80,658 bank customers within the year. Mobile channels became the most vulnerable to fraudsters.
Experts urged financial services companies and banks to be transparent in reporting incidents of fraud as a deterrent to criminals.
11 banks with the highest staff salaries
Legit.ng previously reported that Access Holdings and FBN Holdings recorded the highest staff salary costs for their workers compared to other commercial banks in the first nine months of 2023.
Staff expenses include the company's expenditures concerning staff remuneration and welfare in a specific period, including salaries/wages and other benefits like health insurance, pensions, and training.
Proofread by Kola Muhammed, journalist and copyeditor at Legit.ng
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