Nigerian Banks Lose N42.6bn To Fraud In Three Months

Nigerian Banks Lose N42.6bn To Fraud In Three Months
Nigerian Banks Lose N42.6bn To Fraud In Three Months

The Nigerian banking sector is facing a daunting challenge as fraud and forgeries continue to plague the industry.

A recent report by the Financial Institutions Training Centre (FITC) has revealed a staggering increase in fraudulent activities, with banks losing a whopping N42.6 billion in the second quarter of 2024 alone. This represents a staggering 8,993% increase compared to the first quarter of 2024 and a 637% increase compared to the same period in 2023.

The report paints a grim picture of the banking sector’s vulnerability to fraud, with “miscellaneous and other fraud” types accounting for a staggering 96.46% of the total amount lost.

Fraudulent withdrawals and computer/web fraud followed closely, amounting to approximately N781.2 million and N400.7 million, respectively. The sheer scale of these losses is a cause for concern, highlighting the need for urgent action to stem the tide of fraud.

The FITC report offers a glimmer of hope, however, by providing recommendations for banks to enhance their monitoring and auditing procedures.

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By leveraging AI-driven tools and implementing continuous and automated monitoring systems, banks can detect anomalies or discrepancies in settlement files and prevent fraudulent activities.

Regular unannounced internal audits and strengthened access controls can also help reduce the risk of unauthorized changes to settlement files.
As the banking sector grapples with this disturbing trend, it is essential to acknowledge the human impact of fraud.

Behind every statistic, there are individuals and businesses affected by the loss of hard-earned funds. It is crucial for banks to prioritize the protection of their customers’ funds and maintain the integrity of the banking system.

By working together, banks, regulatory bodies, and customers can combat fraud and ensure the stability of the financial sector. The time to act is now, and the stakes have never been higher.

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