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.
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.