In the first half of 2023, Nigerian banks faced a surge in fraudulent activities, encompassing mobile, computer/web, and Point of Sale (POS) fraud cases, leading to a total of 24,232 reported instances. This information comes from a report by FITC titled “Reports of Fraud and Forgeries in Nigerian Banks (Quarter 2, 2023).” The monetary impact was significant, with the total amount involved reaching N12.33 billion during this period.
The report revealed that during the second quarter of 2023, FITC received a total of 71 reports regarding fraud and forgery cases from 24 deposit money institutions. The breakdown showed 24 returns in April, 23 in May, and another 24 in June. Comparatively, the first quarter of 2023 saw 12,553 recorded fraud cases, which decreased to 11,679 by the second quarter.
Interestingly, mobile fraud, computer/web fraud, and POS-related fraud remained the most prominent types of fraud throughout both quarters. The data pointed to a staggering 276.98% rise in the total amount involved in fraud cases during Q2 2023 in contrast to the previous quarter. The sum escalated from N2.58 billion to N9.75 billion. The monetary loss also witnessed a substantial increase of 1125.03%, soaring from N472 million in Q1 2023 to N5.79 billion in Q2 2023.
While there was a 6.40% reduction in outsider involvement in fraud cases during Q2 2023 (dropping from 12,351 cases in the previous quarter to 11,561 cases), staff involvement in fraud increased by 22.22%, rising from 72 cases in Q1 to 88 cases in Q2 2023.
The report also highlighted that 26 appointments were terminated due to fraudulent activities in the first half of the year. Notably, fraudulent loans accounted for a significant loss of N6.03 billion in Q2 2023, followed by Computer/Web fraud at N1.47 billion (15.10%), Mobile Fraud at N751 million (7.7%), and fraudulent withdrawals totaling N663 million (6.79%).
Channels such as ATMs, online platforms (web and mobile banking), bank branches, and POS terminals were identified as the mediums for these fraudulent activities in Q2 2023. In light of these findings, FITC recommended that Nigerian banks should bolster their security protocols and systems to prevent unauthorized access to customer accounts and sensitive information.
