Report reveals banks lost N6bn to fraud in H1 2023

A FITC research has revealed that mobile fraud, computer/web fraud, and point-of-sale fraud incidents caused Nigerian banks to register 24,232 fraud instances in the first half of 2023.

Reports of Fraud and Forgeries in Nigerian Banks (Quarter 2, 2023) was the report’s title.

This is because the overall sum involved in the review period reached N12.33 billion.

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According to information provided by FITC, 24 deposit money institutions provided a total of 71 returns on cases of fraud and forgery in the second quarter of 2023.

It said, “A closer analysis shows that 24 returns were received in April, while 23 returns were received in May, and 24 returns were received in June.”

In the first quarter of 2023, a total of 12,553 fraud cases were recorded, by the second quarter of 2023, it dropped to 11,679. Data for Q1 indicted that mobile fraud, computer/web fraud, and P0S related fraud were the three most prevalent types of fraud, and this trend persisted in Q2 2023, the firm noted.

Commenting on the amount involved, it stated, “The data reveals a significant 276.98 per cent increase in the total amount involved in fraud cases during Q2 2023 compared to the previous quarter.

“The sum increased from N2.58bn to N9.75bn. Likewise, for amount lost there was a substantial increase of 1125.03 per cent from N472m in Q1 2023 to N5.79bn in Q2 2023.”

In Q2 2023, there was a 6.40 per cent decrease in outsider involvement in fraud cases, with the number dropping from 12,351 cases in the previous quarter to 11,561 cases, however, staff involvement in fraud increased by 22.22 per cent, rising from 72 cases in Q1 to 88 cases in Q2 2023, the firm said.

Twenty six appointments have been terminated because of fraudulent activities in the first half of the year, and more money was lost to fraudulent loans (N6.03bn) in Q2 2023.

It added, “It was followed by the Computer/Web fraud category at N1.47bn (15.10 per cent). Mobile Fraud came next at N751m (7.7 per cent), and fraudulent withdrawals amounted to N663m (6.79 per cent).”

Commenting on the actual amount lost, FITC said, “Additionally, the amount lost also saw a substantial rise, increasing from N472m in Q1 2023 to N5.79bn in Q2 2023, which corresponds to a 1125.03 per cent increase. This increase might be attributed to the fact that banks were liable for the losses incurred and had to make refunds to customers.”