Banks’ Fraud Jumps 539% to N15.15b in 2018

e-banking fraud
  • Banks’ Fraud Jumps 539% to N15.15b in 2018

The Nigeria Deposit Insurance Corporation (NDIC) has said the total amount lost to frauds and forgeries by Deposit Money Banks (DMBs) in 2018 stood at N15.15 billion.

The amount was 539 percent higher than N2.37 billion recorded in 2017 and N2.4 billion filed in 2016.

DMBs reported 37,817 fraud cases in 2018 against 26,182 recorded in 2017. The amount involved was put at N38.93 billion, up from N12.01 billion recorded in 2017.

“The actual amount lost to fraud incidences in 2018 stood at ₦15.15 billion as against ₦2.37 billion and ₦2.40 billion in 2017 and 2016, respectively,” the NDIC stated in its annual report for 2018.

“The rising fraud incidences could be attributed to the increase in the sophistication of fraud related techniques such as hacking, cybercrime as well as increase in I.T related products and usage, fraudulent withdrawals and unauthorised credit.”

According to the NDIC, internet fraud accounted for 59.7 percent of the total fraud perpetrated in 2018 and 42.83 percent of the actual loss suffered. Similarly, web-based fraud cases grew from 7,869 in 2017 to 12,343 in 2018.

However, the number of ATM/Card-related fraud cases dropped from 16,397 in 2017 to 10,063 in 2018. This, NDIC attributed to the increase in security features of the catd as well as security awareness on the part of customers.

The number of banks’ staff involved in frauds and forgeries rose from 320 in 2017 to 899 in 2018.

Temporary staff accounted for 43.83 percent or 394 of the total number of staff involved in frauds. Suggesting that poor salary structure of ‘contract’ staff might have been responsible for the surge in their participation in frauds.

Also, Officers & Executive Assistants’ cadre were involved, accounting for 22.91 percent or 206 fraud cases while supervisors and Managers accounted for 119 or 13.24 percent of the total fraud cases.

About the Author

Samed Olukoya
CEO/Founder Investors King Ltd, a foreign exchange research analyst, contributing author on New York-based Talk Markets and, with over a decade long experience in the global financial market. Contact Samed on Twitter: @sameolukoya; Email: [email protected]

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