Nigerian Banks Lose N42.33 Billion in 6 Months, Data Shows Top Fraud Channels

• A recent report on Fraud and Forgeries by the Financial Institutions Training Centre (FITC) has revealed massive fraud cases in banks
• The report said that Nigerian banks lost a whopping N42.33 billion in the first six months of this year
• The report unveiled top fraud channels, including computer/web, PoS, and mobile sources in the review period

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

Nigerian banks have reported a whopping N42.33 billion in fraud losses in the first six months of 2024, with increases recorded in multiple channels.

Data from the Financial Institutions Training Centre disclosed in its first and second quarter reports on Fraud and Forgeries that the losses revealed an alarming trend.

Fraud cases in bank branches spike

Most importantly, fraud in bank branches spiked 31%, hitting N42.2 billion in the second quarter of this year, relative to N133.9 million recorded in the previous quarter.

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Also, computer/web fraud increased by 1,560.3% from N24 million in the first quarter to N400.8 million the following quarter.

Mobile fraud declined by 59% from N216.4 million in the first quarter to N88.7 million in the second quarter.

There were no ATM-related fraud cases for the review period.

Other fraud channels

The figures for the first and second quarters also show a shift in fraud activities involving some financial instruments.

Card fraud declined by 47.66% from 21,469 cases in Q1 to 11,231 in the year's second quarter, while cheque-related fraud rose 36.67% from 30 cases in the first quarter to 41 cases in Q2.

Cash fraud cases increased 9.09% from 209 in the first quarter to 228 in the second quarter of this year.

Fraud cases across other payment channels declined relative to the previous quarter.

PoS fraud declines in the period

Mobile fraud declined 99% from N21.6 billion to N216.36 million in the first quarter of 2024.

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Also, PoS fraud declined 68.34% from N14.61 million to N4.63 million, while fraud in bank branches declined by 62.42% from N356.34 million in the second quarter to N133.92 million in the first quarter.

Fraud via computer/web channels also declined 16.08% from N28.77 million in the fourth quarter of 2023 to N24.14 million in the first quarter of 2024.

Hackers steal N10 billion, 818 accounts identified

Legit.ng earlier reported

An Abuja Federal High Court directed a 30-day freeze on 818 bank accounts suspected of being involved in a crime related to a N10 billion cyberattack on a Nigerian bank.

The court gave the order on Monday, October 15, 2024, as the court relied on a motion ex-parte filed by the police.

The motion was filed against James Akagwu Isaac and others, including several banks.

Source: Legit.ng