Commercial Banks in the Country have lost N5.7 billion to Fraud

Banking sector 

For the alternate quarter of 2023, a sum of 11,679 cases were reported and when equated to the 12,553 cases reported in Q1, a 6.96 decline is noted. The data for the first quarter of 2023 indicates that mobile fraud, computer/ web fiddle, and POS-clicked fraud were the three most prevailing kinds, keeping up the tendency observed in the first quarter 0f 2023, ” FITC stated in the report.

Fiscal institutions, especially marketable banks in the country have lost N5.7 billion to fraud as in the alternate quarter of this time. According to FITC in its Q2 Fraud and phonies Report, a  sum of 11,679 cases were reported and when compared to 12,553 cases recorded in Q1, a 6.96 percent drop is noted. FITC, a not- for- profit professional organisation, has the Central Bank of Nigeria( CBN), Nigeria Deposit Insurance Corporation( NDIC) and all certified banks in Nigeria as members. 

Currently 24 banks that filed returns on fraud cases for the period. The data for the first quarter of 2023 indicated that mobile fraud, computer/ web fraud, and POS- related frauds were the three most current types of fraud, continuing the trend observed in the first quarter of 2023. The data revealed a significant 276.98 percent increase in the total  volume involved in fraud cases during Q2 2023 compared to the former quarter. 

FITC noted that the sum increased from N2.58 billion to N9.75 billion. Likewise, for the  volume lost, there was a substantial increase of1125.03 per cent from N472 million in Q1 2023 to N5.79 billion in Q2 2023. The report said in Q2 2023, there was a 6.4 per cent drop in  foreign involvement in fraud cases, with the number dropping from 12,351 cases in the former quarter to 11,561 cases. still, it observed that staff involvement in fraud increased by 22.22 per cent, rising from 72 cases in Q1 to 88 cases in Q2 2023. Again, the number of terminated movables related to fraudulent activity dropped by26.67 per cent, going from 15 cases in Q1 to 11 cases in Q2. 

In the review of Q2 2023, an analysis of the magnitude- based ranking of fraud orders reveals that Fraudulent Loans had the  topmost ranking, counting for N6.03 billion(61.81 percent) of the total amount. It was followed by the Computer/ Web fraud order at N1.47 billion(15.10 percent). Mobile Fraud came next at N751 million(7.7 percent), and fraudulent recessions amounted to N663 million(6.79 percent). According to the data on the total amount lost to frauds in the first quarter of 2023, FITC explained that Fraudulent Loans reckoned for the  topmost loss at 94.35 percent, with a value of N5.46 billion. Mobile Fraud represented 3.39 percent of the  sum, amounting to N196 million, while Computer/ Web fraud recessions reckoned for1.03 per cent, totaling N59.5 million. 

Meanwhile, considering the rise in the total  volume involved in fraud cases and the amount lost, FITC  urged Nigerian banks to strengthen their security protocols and systems to help unauthorized access to  customer accounts and sensitive information. According to the organisation, this may involve incorporating measures  analogous asmulti- factor authentication,  applying strong encryption ways, and icing regular security updates are in place. “ Also, banks should use advanced fraud discovery systems and technologies that can analyze patterns, identify anomalies, and descry suspicious activity in real- time. These systems which employ Artificial intelligence( AI) and Machine  learning( ML) can help identify implicit fraud incidents and sensor cautions for  yonder  exploration. ” “ It's also important to perform regular  checks of internal systems, processes, and controls to identify any vulnerabilities or sins that could be exploited by fraudsters and bank staff, ” FITC stated.