Nigerian Banks Suffer N42.6 Billion Fraud Loss in Q2 2024, Marking a 637% Surge from Previous Year
The Nigerian banking sector has witnessed a sharp rise in fraudulent activities during the second quarter (Q2) of 2024, resulting in losses totaling N42.6 billion between April and June, according to the Financial Institutions Training Centre’s (FITC) recently released Q2 2024 Fraud and Forgeries report.
The Q2 2024 losses surpassed the total fraud losses of N9.4 billion recorded throughout 2023. A breakdown of the data shows an alarming 8,993% increase in fraud-related losses compared to N468.4 million in Q1 2024, and a 637% jump from the N5.7 billion lost in Q2 2023.
Key Fraud Types and Channels
FITC’s report highlights that miscellaneous fraud types accounted for the largest share of the losses, contributing to 96.46% (N41.14 billion) of the total N42.6 billion lost in Q2. Other significant losses stemmed from fraudulent withdrawals (N781.2 million) and computer/web fraud (N400.7 million).
The total amount involved in fraud cases also surged by 1,784%, rising from N2.9 billion in Q1 to N56.3 billion in Q2 2024. Fraud was perpetrated through various channels, including ATMs, online banking platforms, bank branches, and point-of-sale (POS) terminals.
Notable Trends
- Decline in Card Fraud: Despite the overall rise in fraud, card-related fraud decreased by 47.66%, dropping from 21,469 cases in Q1 to 11,237 cases in Q2.
- Rise in Cheque and Cash Fraud: Cheque fraud increased by 36.67%, while cash-related fraud saw a modest rise of 9.09%.
- Bank Branch Fraud: The report noted an astronomical increase of 31,497% in fraud losses via bank branches, escalating from N133.9 million in Q1 to N42.2 billion in Q2.
- Mobile Fraud Decline: Mobile fraud recorded a 59% decrease, with losses dropping from N216.4 million in Q1 to N88.7 million in Q2 2024.
This sharp rise in fraudulent activities poses significant challenges for Nigerian financial institutions, regulators, and customers, as the banking industry grapples with increasing threats across multiple channels.
