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Despite decline, bank customers lose N3.62bn to fraud

Despite a reduction in the number of fraud cases, bank customers lost N3.62 billion to fraudsters in the third quarter of 2022, an increase of 207.94 per cent when compared with N1.17 billion recorded in the second quarter of 2022.

According to the Financial Institution Training Centre (FITC) Fraud and Forgeries in the Nigerian Banking Industry report, Nigerian banks recorded a total of 19,314 cases of fraud in the third quarter of 2022, representing 29.40 per cent decrease in the number of cases when compared with 27, 356 cases reported in the second quarter of 2022.

Aside from the actual loss, the total amount involved in fraud during the period also increased by 9.50 per cent to N9.62 billion from N8.78 billion recorded in the second quarter of 2022.

The report also shows that mobile fraud accounts for 33.74 per cent which is N1.22 billion, followed by fraudulent withdrawals accounting at N948 million, representing 26.19 per cent, and theft of cash which stands at N452 million, representing 12.49 per cent.

“An analysis of the magnitude-based ranking of the third quarter 2022 fraud categories reveals that mobile fraud has the highest ranking accounting for N2.67 billion which is 27.75 per cent, and is followed closely by the computer/web fraud category at N2.62 billion representing 27.26 per cent.

This was followed by fraudulent withdrawals at 2.18 billion, representing 22.64 per cent of the total fraud.

Advising banks on the measures to minimize fraud incidences, FITC said banks must improve internal control measures so that fraud activities are proactively prevented.

It said there is also a need for the banks to review fraud control measures in place in the physical bank branches as there was a sustained increase in the amount involved in fraud activities and ultimately the increase in the amount lost in bank branches.

“As always, banks should continue the ongoing sensitization of their customers on the need to protect their personal details across various channels and the banking platform,” it said.



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