A recent report has revealed that Nigerian commercial banks suffered significant losses due to fraud and forgeries in the second quarter of 2024. The total amount lost during this period reached N42.6bn, exceeding the total amount lost throughout the entire year of 2023, which stood at N9.4bn. The report, released by the Financial Institutions Training Centre (FITC) on Saturday, highlights a concerning surge in fraudulent activities across banking platforms in the country. The data collected from 28 deposit money institutions in Nigeria showed a remarkable increase of 8,993% in losses compared to the previous quarter and a 637% increase compared to the same period in 2023.
The FITC report indicates that miscellaneous and other fraud types accounted for the largest portion of the loss, totaling N41.14bn and representing 96.46% of the total amount lost. Additionally, losses resulting from fraudulent withdrawals and computer/web fraud amounted to approximately N781.2m and N400.7m, respectively. The report shows that fraudulent activities were conducted through various channels, including ATMs, online platforms like web and mobile banking, bank branches, and point-of-sale terminals. The use of cards for fraudulent activities decreased by 47.66% in Q2 of 2024, while fraud involving cheques and cash increased by 36.67% and 9.09%, respectively.
According to the FITC, a staggering increase of 1,784% was recorded in the total amount involved in fraud cases from Q1 to Q2 of 2024. The surge in fraud cases poses a significant challenge to the Nigerian banking sector and calls for increased security measures to protect customers’ accounts and finances.
Discover more from Tension News
Subscribe to get the latest posts sent to your email.