July 22, 2024

The Nigeria Banks’ exposures to fraud in the first quarter (Q1) of 2024 dropped to N468.42 million from the N2.09 billion recorded in Q4 of 2023, the mobile channel remained the most vulnerable area.

According to the Financial Institutions Training Centre (FITC) report on ‘Fraud and Forgeries in Nigerian Banks for Q1 2024’, the percentage fraud decline is 77.62 per cent.

The FITC report also indicated that there was a decline in the number of fraud cases reported by the banks compared to the previous quarter.

In terms of the amount involved in fraud, the report revealed that a total of N2.99 billion was involved in fraud in the quarter, representing a 56.73 per cent decline compared with the N6.91 billion recorded in the preceding quarter.

FITC disclosed that for Q1 2024, a total of 11,472 cases were reported and when compared to the 12,405 cases recorded in Q4 2023, a 7.52 per cent decrease is noted.

On the channels, the report said mobile fraud accounted for 46.29 per cent of the total losses recorded by the banks in Q1 2024 with a value of N216.83 million, while computer/web fraud entries accounted for 17.00 per cent, totalling N79.61 million.

FITC said: “During Q1 2024, fraudulent activities were conducted through various channels, which included ATMs, online platforms such as web and mobile banking, bank branches, and point-of-sale (POS) terminals.

“In the first quarter of 2024, cards were the only instrument for fraud that recorded an increase, while the use of cheques and cash recorded relatively lower fraudulent activities when compared to the previous quarter.

There was a 31.12 per cent rise in fraud cases through the POS Channel, rising from 2,683 cases in Q4 2023 to 3,518 cases in QI 2024. Similarly, the number of fraud cases through the Mobile Channel increased by 0.45 per cent, rising from 3173 cases in Q4 2023 to 3393 cases in Ql 2024.”

While commending the decline in fraud activities and losses in Q1 2024, FITC said the banks would need to be more vigilant and also understudy their fraud control activities in this quarter and improve upon the same to ensure that going forward the numbers keep dropping.

It added that the banks need to ensure the application of advanced fraud detection technologies and analytics to continuously monitor transactions of suspicious patterns and anomalies.

Specifically, FITC cited emerging technologies such as artificial intelligence (A), machine learning (ML), robotics process automation (RPA), advanced analytics, predictive modelling, as tools that can be leveraged by the banks to identify patterns of fraud, and proactively detect emerging frauds.



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