Nigerian Financial Institutions Lose N52.26 Billion to Fraud in 2024
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Financial institutions in Nigeria suffered losses amounting to N52.26 billion due to fraud in 2024, according to the latest report by the Nigeria Inter-Bank Settlement System (NIBSS). This marks a sharp increase of N34.59 billion compared to the N17.67 billion recorded in 2023.
The NIBSS Fraud Report tracks fraud-related activities—both attempted and successful—detected by financial institutions and relevant agencies. The report revealed that over the past five years, fraud losses have surged by 196%, mirroring the rise in financial transactions within Nigeria’s digital payments sector.
Decline in Fraud Count but Rising Losses
Despite the increasing financial losses, the number of reported fraud cases declined by 31%, dropping from 101,624 cases in 2020 to 70,111 in 2024. However, the amount lost to fraud rose by 350% within the same period, jumping from N11.61 billion in 2020 to N52.26 billion in 2024.
Fraud-to-Transaction Ratio and System Vulnerabilities
The report highlighted that the ratio of total fraud value to total transaction value fluctuated over the years. While it declined from 0.0053% in 2020 to 0.0022% in 2023, it spiked to 0.0040% in 2024.
Additionally, attempted fraud cases increased by 338% between 2023 and 2024, largely due to system vulnerabilities at certain financial institutions. The report noted that fraud activity was particularly high in Q2 and Q3 of 2024, with a significant increase in both attempted fraud and actual losses before declining in Q4.
Impact on Customers and Industry Response
In 2023, a total of 80,658 unique customers fell victim to fraud, reflecting a 4% decrease from the 84,130 victims recorded in 2022. While this decline suggests some progress, NIBSS warned that the overall severity of fraud remains high.
The organization urged financial institutions to strengthen security measures, enhance fraud detection systems, and collaborate more effectively to mitigate the growing threats posed by fraudulent activities.
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