FITC reveals three most prevalent frauds in Nigerian banking sector

According to data from the Financial Institutions Training Centre (FITC), the three most common types of fraudulent behaviour in Nigeria’s banking sector during the first quarter of 2024 were computer/web fraud, mobile fraud, and POS-related fraud.

This was revealed in the “Report on Fraud and Forgeries Report in Nigerian Banks for Q1 2024” that FITC just published.

According to the report, mobile fraud ranked highest, making up N768.84 million (or 25.73 percent) of the total.

Computer/Web fraud came second, at N680.75 million (22.78 percent), while POS fraud followed at 18.93 percent.

The study did note, however, that banks’ fraud losses decreased by 77.62 percent from N2.09 billion in the final quarter of 2023 to N468.42 million in the first quarter of 2024.

Additionally, the number of fraud cases involving Nigerian bank employees decreased by 12.96 percent from 54 in Q4 2023 to 47 in Q1 2024.

However, in Q1 2024, there were 35 staff appointments terminated, a substantial increase from Q4 2023, when there were only nine occurrences of staff terminations reported.

FITC said, “The F&F report for Q1 2024 shows a significant decline in at least 60 percent of the areas measured when compared to the Q4 2023 report and this is a welcome development.

“We need to understudy fraud control activities in this quarter and improve upon same to ensure that going forward the numbers keep dropping while also implementing continuous vigilance and proactive measures.

“Banks need to ensure the application of advanced fraud detection technologies and analytics to continuously monitor transactions of suspicious patterns and anomalies.”

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