Nigerian banks experienced N42.33bn in fraud-related losses during the first half of 2024, according to a report by the Financial Institutions Training Centre. Fraud spiked across most channels except for mobile platforms, with losses from bank branches rising significantly by 31% to N42.2bn in Q2. Similarly, computer/web fraud surged by over 1,560%, escalating from N24m in Q1 to N400.8m in Q2, highlighting the increasing vulnerabilities in digital banking.
While mobile fraud declined by 59%, from N216.4m in Q1 to N88.7m in Q2, other types of fraud showed mixed trends. Card-related fraud dropped by nearly 48%, while cheque fraud increased by over 36%. Cash fraud also rose modestly by 9% over the same period. However, broader fraud activity revealed an overall decline when compared to Q4 2023, suggesting some improvement in managing fraud risks despite significant challenges in certain areas.
The data reflects ongoing challenges for Nigerian banks in combating fraud amidst evolving methods of financial crime. Despite reductions in mobile and POS-related fraud, the sharp rise in computer and branch fraud underscores the need for strengthened security measures across all payment channels. The losses not only signal financial strain but also highlight the critical importance of technological and operational reforms in the banking sector.
