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

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

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

A new report identifies the main sources of fraud in banks Credit: Bloomberg / Contributor
Source: Getty Images

Report shows a decrease in cases of fraud in banks

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

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A total of 27,356 fraud and counterfeit cases were recorded in the first three months of 2022, representing a 32.49 percent decrease between periods.

The total amount involved in fraud cases during the period also decreased 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 due to fraud cases, there was a marginal decrease of 23.66 per cent from N1.54 billion in Q2 2022.

Main sources of fraud in banks

According to the report, mobile fraud, which includes fraud through USSD transactions, topped the list, followed by web/computer and point-of-sale fraud.

FITC said:

“The amount lost through the web channel decreased considerably from N1.07 billion to N98.4 million, while the amount lost through the ATM channel decreased from N43 million to N5.9 million. On the other hand, an increase was observed in the amount lost through 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.

According to the Nairametrics report, the overall reported decline in fraud cases is commendable for the banking sector.

FITC stated that it is important for banks to strengthen their internal control measures to improve efficiency and eliminate most cases of fraud in Nigerian banks.

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

It’s my plan AZ: the lady rejects the explanation of Zenith Bank about the lack of N4 million

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

Zenith Bank Plc had published a two-page defense letter detailing how one of its clients, Chiamaka Agim NN4.039 million, disappeared from his account.

Legit.ng had previously reported that Agim had approached the bank questioning debit alerts without its approval.

Source: Legit.ng