CEM REPORT, FINANCE | With the present state of the nation’s economy especially the rising cost of living one will expect Nigerians to be more careful in safeguarding their hard-earned funds.
While this is not so much the case considering that many are sourcing means to grow little income and funds through the quickest means available.
A report by FITC disclosed that bank customers in Nigeria lost a total of N1.17 billion to fraud in Q2 2022.
In the report, FITC noted that data from 24 commercial banks reveals that this amount was lost out of a total of N8.78 billion involved in fraud cases in the period.
While this may seem alarming, the recorded figure is a decline in the number of fraud cases across the banks compared to the Q1 of 2022.
According to the report, a total of 27,356 incidents of fraud and forgeries were reported in Q2, compared to 40,522 reported cases in the Q1 2022, representing a 32.49% decrease between the periods.
Compared to Q1 2022 where N14.65 billion was reported to be involved in fraud cases, Q2 of 2022 recorded a decline of 40.05% resulting in N8.78 billion.
Similarly, the total amount lost due to fraud dropped 23.66% from N1.54 billion in the first quarter of 2022 to N1.17 billion in the Q2 2022. Q1 2022.
Evaluating the total amount lost to frauds in Q2 2022 the report details that Mobile Fraud accounts for 38.18% at N449 million loss, followed by Miscellaneous & other types of fraud accounting for 32.19% (N379 million) and Suppression of Entries at 11.02% (N129.64million).
“A closer look at the unusual amount recorded under the Miscellaneous fraud revealed that the fraud was carried out via E-naira for which the banks were liable. “
However with regards to the returns by payment channel, the analysis reveals that there was a decrease in the amount lost to fraud via the Web, ATM and POS channels.
“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.
While commending the banking sector for overall decrease noted in the fraud incidences, the amount involved, and the actual amount lost, FITC added that it was necessary for banks to further strengthen their internal control measures for improved efficiency in pre-empting fraud activities and ultimate prevention of fraud.
The body identified a need to support the internal control measures through increased sensitization of customers on the prevalence of fraud activities and how to protect themselves from it.
FITC was established in 1981 as a Limited by Guarantee not for profit professional services organisation, based on the Company’s Act of 1968. It was created in response to the recommendations of the Pius Okigbo Committee, which was set-up by the Federal Government of Nigeria in 1976, to review the Nigerian financial system.
FITC’s Institutional Members are members of the Nigerian Banker’s Committee, comprises of the Central Bank of Nigeria, the Nigeria Deposit Insurance Corporation and all licensed banks in Nigeria.