According to a FITC (a Nigerian bankers committee) analysis, 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 whole sum involved in the review period reached N12.33 billion. According to information provided by FITC, 24 deposit money institutions provided a total of 71 returns on incidents of fraud and forgery in the second quarter of 2023.
The statement read, "A closer analysis reveals that 24 returns were received in April, 23 returns in May, and 24 returns in June."
A total of 12,553 fraud instances were reported in the first quarter of 2023; by the second, that number had reduced to 11,679. The three most common kinds of fraud according to Q1 data were computer/web fraud, fraud involving P0S, and fraud on mobile devices, the company observed. This trend continued in Q2 2023.
Commenting on the amount involved, it stated, “The data reveals a significant 276.98 percent 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 the amount lost, there was a substantial increase of 1125.03 percent from N472m in Q1 2023 to N5.79bn in Q2 2023.”
However, staff involvement in fraud increased by 22.22 percent, going from 72 cases in Q1 to 88 cases in Q2 2023, the firm said. Outsider involvement in fraud cases decreased by 6.40% in Q2 2023, going from 12,351 cases the quarter before to 11,561 cases.
In the first half of the year, 26 appointments were canceled due to fraudulent activity, and more money (N6.03 billion) was lost to fraudulent loans in the second quarter of 2023.
According to the report, “It was followed by the Computer/Web fraud category at N1.47bn (15.10 percent). Mobile Fraud came next at N751m (7.7 percent), and fraudulent withdrawals amounted to N663m (6.79 percent).”
The avenues for fraud in Q2 2023 included ATMs, internet services like web and mobile banking, bank branches, and point-of-sale terminals.
In a statement on the actual loss, FITC stated, "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 percent increase. This increase might be attributed to the fact that banks were liable for the losses incurred and had to make refunds to customers.”
In order to guard against unauthorized access to client accounts and sensitive information, it was also stated that Nigerian banks should tighten their security processes and systems.