"Full List": Top 10 Countries Where Nigerian Bank Customers Fell Victim to Fraud

• The US, the UK, Ireland, and seven other countries are among the top 10 countries where fraud cases happened targeting Nigerian bank customers
• The annual fraud rate increased by 11% in 2023 from 44.947 cases in 2019 to 95,620 cases in 2023
• The United States recorded the highest fraud cases targeting Nigerian bank customers in the period under review

Legit.ng’s Pascal Oparada has reported on tech, energy, stocks, investment, and the economy for over a decade.

In the past five years, Nigeria’s financial industry has seen an increase in fraudulent activities and a growth in digital payment transactions.

The annual fraud rate spiked by 11%, from 44.947 cases in 2019 to 95,620 in 2023, with corresponding losses rising by 496% from N2.9 billion to N17.67 billion during the same period.

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Bank fraud cases rise in 2023

Also, the ratio of the total reported fraud cases to the value of transactions has slightly risen from 0.0019% in 2019 to 0.0022% in the past year, showing the growing challenge of fighting fraud in the digital economy.

Reports say the Nigerian Inter-Bank Settlement System (NIBSS) 2023 Annual Fraud Landscape report shows a disturbing trend in international fraud activities targeting Nigerian bank customers.

The geographical spread and intensity of fraud reported in 2023 reinforce the need for increased security and vigilance worldwide.

Top ten foreign nations in which Nigerian bank customers were defrauded in 2023

United States

The country recorded a drop in fraud cases from 3,939 in 2022 to 486 in 2023. The US was the most affected country, with a total loss of N79.9 million, down from N95.83 million the year before.

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The total amount lost to fraud decreased by more than 16%, showing a shift towards high-value targets.

Ireland

The number of fraud cases in the country rose from 68 in 2022 to 109 in 2023. The financial losses rose astronomically tenfold, to N15.5 million from N1.66 million.

United Kingdom

The UK also experienced a drop in fraud cases in 2023. Reported cases dropped from 172 in 2022 to 81 in 2023.

The total amount lost rose to N10.8 million from N5.11 million, showing a decrease in the number of cases but more fraud cases.

Singapore

The country reported four fraud cases in 2023, leading to a loss of N2.4 million, showing the sophistry of the fraud types in Singapore.

Switzerland

The country recorded one fraud case in the past year, bringing about N2 million in losses.

Reports say this lone case's high value was a sophisticated operation targeting individuals with high net worth.

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United Arab Emirates (UAE)

The oil-rich country reported about five cases leading to an N1.9 million loss, which shows the impact of fraudulent activities in the region targeting Nigerian customers.

Canada

The country reported decreased fraud cases from 35 in 2022 to 13 in 2023 but recorded a rise in financial losses of N1.8 million in 2023 from the N1,25 million recorded in 2022.

Netherlands

Nine cases cost N1.4 million in the Netherlands in 2023, highlighting the prevalence of fraudulent activities in the country.

Luxembourg

Luxembourg recorded ten fraud cases with a total financial loss of N1.4 million, indicating the presence of fraudulent activities within its borders.

Kenya

Despite just four cases, Kenya incurred losses amounting to N0.76 million, emphasizing the need for vigilance against fraud despite relatively low numbers.

ATM, PoS, and mobile channel fraud increase

Legit.ng previously reported that Automated Teller Machines (ATMs, Point of Sale (PoS) terminals, mobile and other electronic channels, and cash accounted for N3.62 billion in fraud in Nigerian banks in the third quarter of 2022.

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The Financial Institutions Training Centre (FITC) stated this in its report ‘Report on Frauds and Forgeries in Nigerian Banks’ for Q3 of 2022, on cash theft incidents reported within the period.

The 18-page document showed that in Q3 of 2022, about 19,34 cases were reported, compared to 20,195 cases witnessed in the same period in 2021, a decline of about 4.36%.

Source: Legit.ng