Access, Zenith, First Bank, Other Nigerian Banks Sack 49 Employees, Give Reasons
- Nigerian banks have reported a rise in fraud cases involving staff members in 2024
- The development has led to the dismissal of 49 employees who were caught in fraudulent activities
- A recent report shows that the banks lost about and valued at N41.14 billion in insider and external fraud cases
Legit.ng’s Pascal Oparada has reported on tech, energy, stocks, investment and the economy for over a decade.
Deposit money banks terminated the employment of 49 staff members between April and June 2024 over fraudulent activities.
That is according to a report published by the Financial Institutions Training Centre (FITC).
Source: UGC
58 employees execute 11,000 fraud cases
The report showed a troubling rise in internal misconduct, with bank employees discharged for fraudulent activities rising by 40% relative to 35 employees dismissed in the first quarter of 2024.
Also, the report noted that 58 bank employees were involved in 11,532 fraud cases reported during Q2 2024, representing a 23% increase in insider involvement compared to 47 cases in the first quarter.
According to the report, fraud cases involving external actors spiked by 5.20%, from 10,397 in the first quarter to 1,038 in the second quarter.
The financial effect of the fraudulent activities also rose, with losses from fraud in the second quarter skyrocketing by over 900%, reaching N42.6 billion.
The figure represents a sharp contrast to the N468.4 million recorded in the first quarter of 2024 and a 637% rise relative to the N5.7 billion loss reported in Q2 of 2023.
Breakdown of monetary losses by banks to fraud
The amount lost in the second quarter of 2024 surpassed the total losses of N9.4 billion suffered by Nigerian banks throughout 2023.
The Sun reports that a breakdown of the report shows that various fraud types accounted for most of the losses, 96.46% of the total amount lost and valued at N41.14 billion.
Fraudulent withdrawals and computer/web-based fraud followed, with total losses of N781.2 million and N400.7 million, respectively.
Responding to growing threats of insider fraud, the FITC recommended that financial institutions use technology to curtail fraud risks in their systems.
FITC makes strong recommendations
The centre specifically urged banks to implement stricter access controls by limiting access to sensitive settlement files to a small vetted group of authorised personnel with the appropriate clearance and training.
It also recommended the adoption of multi-factor authentication and role-based controls to safeguard unauthorised changes to critical files.
The FITC stressed the importance of continuous fraud prevention training for employees, focusing on emerging fraud techniques and crucial warning signs, especially as card-based and web-related fraud continues to rise.
Fraudsters attack 28 banks, steal N42.6 billion
Legit.ng earlier reported that a recent survey showed that Nigerian commercial banks lost N42.6 billion in fraud and forgeries in three months, from April to June.
The total amount of money lost to bank fraud in 2023 was surpassed by the amount lost in just the second quarter of 2024. The banks lost N9.4 billion in total in 2023.
The total amount of money lost to bank fraud in 2023 was surpassed by the amount lost in just the second quarter of 2024. The banks lost N9.4 billion in total in 2023.
PAY ATTENTION: Сheck out news that is picked exactly for YOU ➡️ find the “Recommended for you” block on the home page and enjoy!
Source: Legit.ng
