Bank customers lose N1.17bn to fraudsters in Q2, 2022 – FITC
The Financial Institutions Training Centre (FITC), a not-for-profit organization professional services organization providing knowledge-based solutions to clients within and outside Nigeria’s financial system, has reported that bank customers in the country lost N1.17 billion to fraud in Q2 2022.
The FITC, based on the findings of its study on the banking sector, reported that data from 24 commercial banks indicated that the huge sum was lost out of the N8.78 billion involved in fraud cases during the quarter in review.
According to the Centre, the study, however, showed that fraud cases across the covered banks declined when compared to the preceding quarter (Q1).
Specifically, it disclosed that 27,356 incidents of frauds and forgeries were reported in Q2, representing a 32.49% decrease when compared to the 40,522 reported cases in Q1.
Similarly, the financial system capacity-building institution, further reported that the total sum involved in fraud cases during the period also deployed by 40.05% from N14.65 billion in Q1 2022 to N8.78 billion in Q2 2022.
This is even as it also disclosed that there was a marginal decrease in the amount lost to fraudsters from the N1.54 billion recorded in Q1 2022 to N1.17 billion in the quarter under review, representing a 23.66% decline quarter-on-quarter.
An analysis of the report’s findings on channels used to defraud bank customers showed that mobile fraud, which includes fraud activities through USSD transactions, recorded the highest occurrence of incidents followed by computer/web fraud and POS fraud.
The FITC further clarified: “Evaluating the total amount lost to frauds in Q2 2022 reveals 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.
“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 Centre added.
Financial system analysts believe that efforts by the Centre Bank of Nigeria (CBN), through its special Customers Desk which had been responding to customers’ complaints over the past two years, has also been helpful in tackling potential fraud cases.
The apex bank and the deposit money banks (DMBs), other financial institutions (OFIs) and relevant security agencies, have been sensitizing bank customers on antics of fraudsters and the need for them to shun their offerings and information theft requests.