Fraud Cases In Banks Decline To 19,314 In Q3 2022 As Customers Lose N3.62 Billion —Report

Fraud cases in banks declined to 19,314 in Q3 2022 as Customers lose N3.62 Billion.

Key highlights

• Despite a reduction in the number of fraud cases, bank customers lost more money in Q3 2022
• The total amount involved in frauds also increased to N9.62 billion from N8.78 billion recorded in Q2 2022.
• Mobile frauds accounted for 33.74%i of the total loss

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Aside from the actual loss, the total amount involved in fraud during the period also increased by 9.50% to N9.62 billion from N8.78 billion recorded in Q2 2022.

Top fraud channels

Data from the total amount lost to frauds in Q3 2022 reveal that mobile fraud accounts for 33.74% N1.22 billion loss, followed by fraudulent withdrawals accounting for 26.19% (N948 million), and theft of cash at 12.49% (N452 million). FITC noted that for the theft of cash, “all cases reported were carried out by bank personnel.”

In terms of the total amount involved in fraud in the three months, FITC also highlighted the channels that were top targets for frauds.

• “An analysis of the magnitude-based ranking of Q3 2022 fraud categories reveals that mobile fraud has the highest-ranking accounting for N2.67 billion which is 27.75%, and this is followed closely by the computer/web fraud category at N2.62 billion (27.26%).
• “This was followed by fraudulent withdrawals at 22.64% accounting for N2.18 billion” it stated.

Recommendations to banks

Advising the banks on measures to minimize incidences of fraud, FITC said the banks must improve internal control measures so that fraud activities are proactively prevented. It said there is also a need for the banks to review fraud control measures in place in the physical bank branches as there was a sustained increase in the amount involved in fraud activities and ultimately the increase in the amount lost in the bank branches.

• “To reduce incidences of fraud within the branches of the bank, all fraud control touchpoints must be reviewed critically for loopholes and when these loopholes are identified, efforts must be made to close the gaps to avoid future occurrences.
• “As always, banks should continue the ongoing sensitization of their customers on the need to protect their personal details across various channels and banking platforms,” it said.

FITC is a not-for-profit professional organisation, which has the Central Bank of Nigeria (CBN), the Nigeria Deposit Insurance Corporation (NDIC), and all licensed banks in Nigeria as members. The organisation receives quarterly reports of fraud from all banks in the country.