Nigerian banks have been besieged by a surge in fraud incidents during the first half of 2023, totaling 24,232 cases, encompassing mobile fraud, computer/web fraud, and Point of Sale (PoS) fraud, according to a report by FITC, a financial services consulting firm. The report, titled “Reports of Fraud and Forgeries in Nigerian Banks (Quarter 2, 2023),” highlights the alarming rise in fraud cases and the significant monetary implications.
Within the time frame under review, the aggregate sum involved in these fraudulent activities skyrocketed to N12.33 billion. FITC’s data reveals that the second quarter of 2023 alone saw 71 instances of fraud and forgery reported by 24 deposit money institutions. An in-depth analysis showcases a distribution of 24, 23, and 24 returns received in April, May, and June, respectively.
The report underscores a noteworthy trend: while the first quarter of 2023 witnessed 12,553 fraud cases, this number slightly decreased to 11,679 in the subsequent quarter. Notably, the dominant forms of fraud, including mobile fraud, computer/web fraud, and PoS-related fraud, remained consistent throughout both quarters.
FITC points out a staggering 276.98% surge in the total amount linked to fraud cases during Q2 2023 compared to the previous quarter, leaping from N2.58 billion to N9.75 billion. Similarly, the losses incurred escalated significantly, witnessing an astonishing 1125.03% increase from N472 million in Q1 2023 to N5.79 billion in Q2 2023.
Opinion:
The spike in fraud incidents and the accompanying financial toll painted by FITC’s report are cause for serious concern. While the report indicates a slight reduction in the overall number of fraud cases, the massive surge in monetary losses remains alarming. The fact that banks are liable for the losses underscores the urgent need for bolstered security protocols. Nigerian banks must intensify their efforts to fortify their systems and protocols, guarding against unauthorized access to sensitive customer information and accounts. This challenge necessitates a concerted and collaborative approach from the banking sector and regulatory bodies to ensure the protection of both the financial system and the customers it serves.
Published by Marketnewsng