Nigerian Banks See Significant Reduction in Financial Fraud Losses in Q1 2024
Nigerian banks experienced a significant decrease in financial fraud losses in the first quarter of 2024, with the total amount lost declining by 77.62% compared to the previous quarter. This information was revealed in the recently released “Report on Fraud and Forgeries in Nigerian Banks for Q1 2024” by the Financial Institutions Training Centre (FITC).
According to the report, Nigerian banks lost N468.42 million in Q1 2024, a substantial drop from the N2.09 billion lost in Q4 2023. The report also highlighted that the total amount involved in fraud during the quarter was N2.99 billion, marking a 56.73% decline from the N6.91 billion recorded in the preceding quarter.
The FITC report indicated a decrease in the number of fraud cases reported by the banks compared to the previous quarter. In Q1 2024, a total of 11,472 cases were reported, a 7.52% decrease from the 12,405 cases recorded in Q4 2023.
The report identified computer/web fraud, mobile fraud, and POS-related fraud as the top three prevalent forms of fraudulent activity, consistent with trends observed in the previous quarter.
Channels of Fraud
The report detailed that mobile fraud accounted for 46.29% of the total losses recorded by the banks in Q1 2024, with a value of N216.83 million. Computer/web fraud entries made up 17.00% of the losses, totaling N79.61 million.
“During Q1 2024, fraudulent activities were conducted through various channels, including ATMs, online platforms such as web and mobile banking, bank branches, and point-of-sale (POS) terminals,” stated FITC.
Cards were the only instrument for fraud that saw an increase in activity. The use of cheques and cash saw relatively lower fraudulent activities compared to the previous quarter. Notably, fraud cases through the POS Channel rose by 31.12%, from 2,683 cases in Q4 2023 to 3,518 cases in Q1 2024. Similarly, the number of fraud cases through the Mobile Channel increased by 0.45%, from 3,173 cases in Q4 2023 to 3,393 cases in Q1 2024.
The FITC further emphasized on the need for banks to remain vigilant, urging them to review and enhance their fraud control measures to ensure that the numbers continue to decrease in the future.
Source: Nairametrics
