A report released by the Financial Institutions Training Centre (FITC) showed that 24 banks lost N9.75 billion to fraudulent transactions in the second quarter of 2023.
The figure increased by 276.98 per cent from N2.58 billion reported in the first quarter of the year.
The report entitled ‘Fraud and Forgeries in Nigerian Banks for Q2’23’ stated that the losses were recorded by 24 banks that filed their returns on fraud cases for the period.
It added that outsider involvement in the fraud cases dropped by 6.4 per cent, while staff involvement rose by 22.2 per cent within the period.
According to FITC, fraudulent loans accounted for the highest loss at 94.35 per cent with a value of N5.46 billion, followed by mobile fraud, which accounted for 3.39 per cent of the total loss amounting to N196 million.
Internet fraud, according to FITC, was minimal, accounting for one percent of the total losses at N59.5 million during the period.
“During the second quarter of 2023, there were 11,679 reported cases, showing a 6.96 per cent decrease compared to the 12,553 cases in the first quarter. However, the data indicates a significant increase in the total amount involved in fraud cases. The amount rose from N2.59 billion in the previous quarter to N9.75 billion in Q2, representing a 276.98 per cent increase.
“Additionally, the amount lost also saw a substantial rise, increasing from N472 million in Q1 2023 to N5.79 billion in Q2 2023, which corresponds to an 1125.03 per cent 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 Q2 2023, there was a 6.40 percent decrease in outsider involvement in fraud cases, with the number dropping from 12,351 cases in the previous quarter to 11,561 cases. However, staff involvement in fraud increased by 22.22 per cent, rising from 72 cases in Q1 2023 to 88 cases in Q2 2023. Conversely, the number of terminated appointments related to fraudulent activities decreased by 26.67 per cent, going from 15 cases in Q1 2023 to 11 cases in Q2 2023,” it stated.
