Connect with us

Banking Sector

Nigerian Bank Customers Suffer N472m Loss to Fraud in Q1 2023

The report obtained from FITC’s website also highlighted a total of 12,553 recorded cases of fraudulent activities during this period.

Published

on

Fraudsters

The Financial Institutions Training Centre (FITC) has revealed that bank customers in Nigeria fell victim to fraud amounting to a staggering N472 million in the first quarter of 2023.

The report obtained from FITC’s website also highlighted a total of 12,553 recorded cases of fraudulent activities during this period.

However, amidst this disheartening news, there is a glimmer of hope as the FITC data indicates a noticeable decline in losses compared to the previous quarter’s fraudulent banking activities.

In Q4 2022, a whopping N3.18 billion was lost to fraudsters across various banking platforms, making the losses decrease by an impressive 85.13 percent in Q1 2023.

Further analysis of the FITC report reveals a 79.44 percent decrease in the total amount involved in fraud cases during Q1 2023, as compared to the preceding quarter. The figures dropped significantly from N12.58 billion to N2.59 billion, marking a positive trend in combatting fraudulent activities.

The number of fraud cases reported in Q1 2023 also witnessed a decline of 14.07 percent. A total of 12,553 cases were reported during the first quarter of this year, a decrease from the 14,609 cases recorded in the previous quarter.

Consistent with the trends observed in the previous quarter, the report highlighted that fraud occurred predominantly through mobile, computer/web, and Point of Sale (PoS) platforms. These channels accounted for the majority of fraudulent activities during the quarter.

The FITC report states, “For Q1 2023 under review, an analysis of the magnitude-based ranking of fraud categories shows that mobile fraud has the highest ranking, accounting for N1.1 billion (42.72 percent). This is followed by the computer/web fraud category at N646 million (24.99 percent). PoS fraud ranked third at N450 million (17.41 percent), and fraudulent withdrawals were recorded at N139 million (5.36 percent).”

Taking a closer look at the total amount lost in Q1 2023, the data reveals that mobile fraud accounted for 34.07 percent, amounting to N161 million. Computer/web fraud followed closely, representing 27.69 percent at N130 million, while fraudulent withdrawals accounted for 24.72 percent, totaling N116 million.

Is the CEO/Founder of Investors King Limited. A proven foreign exchange research analyst and a published author on Yahoo Finance, Businessinsider, Nasdaq, Entrepreneur.com, Investorplace, and many more. He has over two decades of experience in global financial markets.

Continue Reading
Comments

Banking Sector

Jaiz Bank Boosts Chairman’s Income to N24m Amidst Strategic Expansion

Published

on

Jaiz Bank

Jaiz Bank has announced a 20% increase in its chairman’s annual income to N24 million.

This decision was unveiled in a recent statement filed with the Nigeria Exchange Limited, highlighting the bank’s commitment to rewarding leadership amidst its expansion plans.

The bank, renowned for its pioneering role in non-interest banking in Nigeria since 2012, also approved a remuneration package of N20 million for each non-executive director.

The announcement was made by the bank’s secretary, Mohammed Shehu, highlighting the importance of competitive compensation for board members who provide crucial oversight and strategic guidance.

Shareholders at the Annual General Meeting (AGM) expressed confidence in the board’s leadership by approving the resolution on directors’ fees.

This move aligns with Jaiz Bank’s ongoing efforts to enhance its capital base to N70 billion by the end of 2024.

The bank also announced a dividend of 4 kobo per share, which will be distributed to shareholders on July 16, 2024.

This dividend declaration was welcomed as a testament to the bank’s operational success in a challenging economic climate.

Also, the AGM saw the re-election of Muhammadu Indimi and Muhammad Abdulmutallab as non-executive directors, reaffirming shareholder trust in their leadership capabilities.

Jaiz Bank’s financial performance has been impressive, with a 67% increase in profit before tax, reaching N11.1 billion in 2023.

Gross earnings also rose by 42% to N47.2 billion from the previous year, showcasing the bank’s successful growth strategy.

As Jaiz Bank continues to expand its services, the enhanced remuneration package signals a commitment to maintaining strong governance and leadership, paving the way for future achievements in ethical banking.

Continue Reading

Banking Sector

Nigeria Plans 50% Windfall Tax on Banks’ Currency Profits

Published

on

Central Bank of Nigeria (CBN)

Nigerian President Bola Tinubu has announced a one-time 50% tax on windfall profits that banks reaped from currency gains following last year’s naira devaluation.

This decision was part of the government’s strategy to navigate the ongoing cost-of-living crisis.

The naira, which has depreciated by about 70% against the dollar since foreign exchange rules were relaxed in June 2023, allowed banks holding dollar assets to significantly boost their income.

However, the Central Bank of Nigeria had advised lenders to retain these profits as a buffer against potential future losses.

The proposed tax will apply to the 2023 financial year, with non-compliance resulting in hefty fines.

The move has already impacted the NGX Banking Index, which fell by 1.3% as of midday trading in Lagos. Notable declines were seen in FBN Holdings Plc and Zenith Bank Plc, dropping 3.2% and 2.5% respectively.

This initiative mirrors similar actions in Europe, where countries like Italy and Hungary have imposed taxes on banks to address what they view as excessive profits during periods of high inflation and interest rates.

European banks have criticized these measures, warning of potential impacts on economic growth due to constrained lending capabilities.

President Tinubu’s administration believes this tax will help manage Nigeria’s fiscal challenges while addressing social needs.

Lawmakers are expected to support the measure, alongside a proposal to increase government spending by 6.2 trillion naira ($3.8 billion).

While banks have benefited from currency revaluations, many customers, particularly manufacturers with dollar-denominated loans, faced significant losses as they struggled with the weaker naira.

The new tax policy highlights the government’s broader efforts to stabilize the economy and attract foreign investment, aiming to ensure a more equitable distribution of financial gains.

Continue Reading

Banking Sector

Unity Bank Customers Win Over N4 Million in Cashtoken Rewards Promo

Published

on

Unity Bank customers have claimed over N4 million in cash rewards in its ongoing loyalty programme recently rolled out with Cashtoken, a Cash Reward-as-a-Service company.

The winners included no fewer than 40 customers who adopted and transacted on the Bank’s digital banking platforms, including the UniFi mobile banking application, the *7799# USSD platform or activated their Unity Bank Verve Card to transact on e-payment terminals across Nigeria.

Beginning from onboarding in our customer lifecycle journey, the Unity Bank Cashtoken Partnership commenced as a loyalty and reward scheme to reinforce the benefits of e-banking platforms. To begin, Customer transactions earn cash tokens, which are then redeemed to qualify for the monthly Cashtoken Rewards draw. Consequently, winners emerge from the draws to claim the cash prizes.

Recall that the retail lender announced the ongoing Cashtoken Rewards loyalty programme in December 2023 in partnership with Cashtoken Rewards Africa to empower customers and improve customer satisfaction. The partnership with Cashtoken Rewards also provided an opportunity for the Bank to migrate customers—old and new—to a platform that will continually create exciting rewards and appreciation for loyalty.

Eghomware Iyamu, Unity Bank’s Head of E-Business, commenting on the success of the Cashtoken Rewards loyalty program, stated: “We are excited to see our customers win over N4 million in cash rewards through our partnership with Cashtoken. This initiative demonstrates our commitment to recognizing and rewarding the loyalty of our customers”.

“By leveraging our digital banking platforms, including the Unifi mobile banking application and the *7799# USSD platform, we are not only enhancing customer experience but also providing life-changing opportunities. The Cashtoken Rewards program is a testament to our dedication to improving customer satisfaction and creating meaningful rewards along our customer lifecycle journey. We look forward to seeing more of our customers benefit from this exciting program as we continue to innovate and deliver exceptional value to them.”

Unity Bank has robust electronic banking products which include mobile and digital banking channels, including ATM, PoS, or any digital payment channels which support retail product transactions across the country. New-to-Bank customers are invited to open a Unity Bank account, onboard onto the digital platforms and begin transacting on the various platforms to earn cash token rewards and cash prizes while existing customers are encouraged to onboard and transact to win even more rewards and cash prizes.

Continue Reading
Advertisement




Advertisement
Advertisement
Advertisement

Trending