Connect with us

Hi, what are you looking for?

E-Financial

Banks Lose N468m to Fraud in Q1 2024 -FITC

Banks

Deposit Money Banks (DMBs) in Nigeria recorded a total loss of N468.42 million dues to fraudulent activities in the first quarter of 2024, according to Financial Institutions Training Centre (FITC).

The reported represented a decrease of 77.62 per cent over the N2.09bn lost in the fourth quarter of 2023 according to FITC Report on Fraud and Forgeries in Nigerian Banks for Q1 2024 released on Monday.

FITC was established in 1981 as a not for profit special purpose professional services organization that is limited by guarantee of its members, who are also members of Nigerian Bankers’ Committee, as comprised of the Central Bank of Nigeria, the Nigeria Deposit Insurance Corporation, all licensed Banks and Discount Houses in Nigeria.

The institution also noted that number of cases reported by the DMBs in Nigeria dropped by 7.5 per cent compared to the 12,405 cases reported in the fourth quarter of 2023.

“Nigerian banks lost N468.42m in the first quarter, a substantial decline from the N2.09bn loss they recorded in Q4, 2023

“For Q1 2024, a total of 11,472 cases were reported, and when compared to the 12,405 cases recorded in the Q4 2023, a 7.52 per cent decrease is noted” the report read.

Revealing channels where the criminal activities were perpetrated, the institution cited computer/ web fraud, mobile fraud, and Point of Sale (POS) as the top three prevalent forms of fraudulent activity.

This, it added, is consistent with the trend observed in the previous quarter.

According to the FITC report, mobile fraud accounted for 46.29 per cent of the total losses recorded by the banks valued at N216.83m, while computer/web fraud entries accounted for 17 per cent.

“During Q1 2024, fraudulent activities were conducted through various channels, which included ATMs, online platforms such as web and mobile banking, bank branches, and point-of-sale (POS) terminals.

“In the first quarter of 2024, cards were the only instrument for fraud that recorded an increase, while the use of cheques and cash recorded relatively lower fraudulent activities when compared to the previous quarter.

“Specifically, there was a 31.12 per cent rise in fraud cases through the POS Channel, rising from 2,683 cases in Q4 2023 to 3,518 cases in QI 2024” FITC stated in the report.

The institution urged commercial banks across the country to be more vigilant, while noting that banks need to ensure advanced fraud detection technologies.

In addition, FITC urged DMBs to employ the services of Artificial Intelligence, Machine Learning, Robotics Process Automation, Advanced Analytics, and Predictive Modelling to arrest the situation.

Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

ad

You May Also Like

Tech

In a decisive move toward bridging Nigeria’s digital divide and fostering an inclusive digital economy, the Director General of the National Information Technology Development...

News

An Ekiti state magistrate court has granted bail to Human rights lawyer Dele Farotimi, in a defamation case filed against him by legal expert,...

Tech

As part of its mandate to foster digital literacy, cultivate talents and empower Nigerians with the knowledge and skills needed, the National Information Technology...

Tech

In alignment with MTN Nigeria’s vision for digital transformation and inclusion, S Mobile is making significant strides to support technological advancement and improve access...