Nigerian Banks Sacked 110 Top Executives, Others for Fraud Amounting to N82bn
- A report by FITC shows that bank officials and subordinate employees were sacked between Q2 2021 and Q2 2023
- Q3 2021 saw the maximum number in terms of the total money involved at N34.78 billion
- The highest layoff of staff was made in the third quarter of 2022
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During the last two years, at least 110 senior bank officials and subordinate employees have been fired for fraud-related charges.
This was revealed in a report titled: 'Reports of Fraud and Forgeries in Nigerian Banks' and published by the Financial Institutions Training Centre (FITC).
The report was for the second quarter of 2021 and the second quarter of 2023.
The Nigerian Banker's Committee, which includes the Central Bank of Nigeria, the Nigeria Deposit Insurance Corporation, and all licenced banks in Nigeria, make up the institutional members of FITC.
Source: Getty Images
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Legit.ng had reported that bank customers in Nigeria lost N472 million to fraud in the first three months of 2023 as revealed by the FITC.
The development comes amid growing concerns over the rising number of bank customers falling victim to fraud in the country.
Employees fired increases
The PUNCH reported that the number of bank employees fired increased by 175%, from four in Q2 2021 to 11 in Q2 2023. The Q3 2022 saw the highest number of top bank executives and junior employees let go. Twenty administrators were let go.
A total of 52 bank employees were let off for fraud-related reasons between Q2 2021 and Q2 2022. However, 58 bank employees were let off for the same reason between Q3 2022 and Q2 2023.
Additionally, there were 967 fraud incidents in which the fired employees were involved during the time period under consideration.
With 410 incidents involving bank employees, Q4 2021 saw the highest number of cases; Q3 2021 saw the lowest number of cases, at 32.
Also, bank employees were involved in 657 incidents between Q2 2021 and Q2 2022 and 310 cases between Q3 2022 and Q2 2023.
Out of a total of N81.69 billion implicated in fraud cases during the analysed period, approximately N18.01 billion was lost owing to fraud committed by bank employees and outsiders.
Largest loss recorded in Q2 2023
The largest loss was N5.79 billion in the second quarter of 2023, and the least loss was N472.28 million in the first quarter.
The maximum number for the total money involved was N34.78 billion in Q3 2021, while the lowest amount was N1.18 billion in Q2 2022.
The most common fraud types persisted in Q2 2023, with mobile fraud, computer/web fraud, and P0S-related fraud being the most widespread.
Recall that Nigeria Police Force (NPF) officially verified the arrests of two suspects who are allegedly part of a syndicate involved in the unauthorised access of over 1000 bank accounts within Nigeria.
This follows an earlier alarm raised by the Nigerian Deposit Insurance Corporation (NDIC) about the heightened number of bank fraud cases in Nigeria.
Nigerian banks lose N9.5 billion to PoS, betting platforms, as e-fraud soars in 6 months
Nigerian banks have lost a massive N9.5 billion to electronic fraud from January to August 2023, Legit.ng had reported.
The development comes as Nigeria Electronic Fraud Forum (NeFF), on Friday, August 18, 2023, called for new standards and increased partnerships to curtail the rising cases of electronic fraud.
The Forum revealed this at its third-quarter general meeting in Lagos focused on New Strategies for Combating e-Fraud in a Cashless Environment.
Source: Legit.ng
