Top Sources of Fraud in Banks Revealed as Customers in Nigeria Lose N1.17 Billion in 2022, Report Says

Top Sources of Fraud in Banks Revealed as Customers in Nigeria Lose N1.17 Billion in 2022, Report Says

  • A recent report by Financial Institute Training Centre (FITC) has revealed top sources of fraud
  • The Centre said PoS, Web/Computer and USSD, among others in the banking industry
  • The Centre said bank customers in Nigeria lost a total N1.7 Billion to fraud in 2022

PAY ATTENTION: How media literate are you? Click to take a quiz – bust fake news with Legit.ng!

A report by Financial Institute Training Centre (FITC) has shown that bank customers in Nigeria lost a total of N1.17 billion in the second quarter of 2022.

The centre revealed that information from 24 commercial banks in Nigeria indicates that the amount was lost out of a total of 8.78 billion reported fraud cases in the period under review.

PoS, Web/Comouter, USSD, bank fraud
A new report identifies top sources of fraud in banks Credit: Bloomberg / Contributor
Source: Getty Images

Report shows a decline of fraud cases in banks

The data revealed a decline in the number of fraud cases across the banks compared to the first quarter of 2022.

PAY ATTENTION: Share your outstanding story with our editors! Please reach us through info@corp.legit.ng!

A total of 27,356 cases of fraud and forgeries were recorded in the first three months of 2022, representing a 32,49 per cent decline between the periods.

The total amount involved in fraud cases during the period also declined by 40,05 per cent from N14.65 billion in the first quarter of 2022 to N8,78 billion in the second quarter of the same year.

Also, for the total amount lost to fraud cases, there was a marginal decline of 23,66 per cent from N1.54 billion in the second quarter of 2022.

Top sources of fraud in banks

According to the report, mobile fraud which includes frauds via USSD transactions topped the list followed by Web/Computer and PoS fraud.

FITC said:

“The amount lost via the Web channel decreased considerably from N1.07 billion to N98.4 million while the amount lost via the ATM channel decreased from N43 million to N5.9 million. On the other hand, an increase was noted in the amount lost via the Bank Branch, Mobile fraud channels, from N103.45 million to N618.24 million (497.56%) and N270.92 million to N449.03 million (65.74),” FITC added in the report.

Per Nairametrics report, the overall decline stated in fraud cases is commendable for the banking sector.

FITC stated that it is important for banks to strengthen their internal control measures for enhanced efficiency nipping most fraud cases in Nigerian Nigerian banks.

FITC is a non-profit professional organisation that includes the Central Bank of Nigeria (CBN), the Nigeria Deposit Insurance Corporation (NDIC) and all licensed banks in the country.

It’s my plan A-Z: lady rejects Zenith Bank’s explanation over missing N4 million

Legit.ng reported that the lady, Chiamaka Agim, who lost N4 million from her Zenith Bank account has rejected the explanation offered by the bank.

Zenith Bank Plc had put out a two pages defence letter detailing how one of its customers, Chiamaka Agim NN4.039 million vanished from her account.

Legit.ng had earlier reported that Agim had approached the bank questioning the debit alerts without her approval.

Source: Legit.ng

Online view pixel