Nigerian Banks Lose N53.4 Billion to Cybercriminals in Nine Months -Report
Nigerian banks are facing an uphill battle against cybercrime, with losses amounting to a staggering N53.4 billion in just nine months, according to the latest Fraud and Forgery Report by the Financial Institutions Training Centre (FITC). This marks a sharp increase from the N9.4 billion lost during the same period in 2023, representing a 468% surge year-on-year.
The report highlights significant fluctuations in cybercriminal activity over the three quarters of 2024:
- Q1 2024: Losses were relatively modest at N468.4 million.
- Q2 2024: A massive escalation occurred, with losses skyrocketing to N42.8 billion, a 9037.5% increase compared to Q1.
- Q3 2024: Losses slowed down to N10.1 billion, representing a 76.4% decline from Q2.
These figures underscore the persistent threat posed by cybercriminals and the varying levels of vulnerability within the banking system.
Rising Fraud Attempts and Prevention Success
The number of reported fraud cases also rose significantly, increasing by 65% year-on-year. Between July and September 2024, hackers attempted to steal a total of N115.9 billion, up from N56.6 billion in the previous quarter—a 104.8% jump.
Despite the rise in attempted fraud, banks demonstrated improved defensive measures in Q3. Of the N115.9 billion targeted by hackers, only 8.7% (N10.1 billion) was successfully stolen, a marked improvement from Q2, where 75.6% (N42.8 billion) of targeted funds were lost.
Preferred Methods and Channels for Cybercrime
The report identifies several trends in cybercriminal tactics:
- Top Methods:
- Computer/Web fraud
- Mobile fraud
- POS-related fraud
These methods remain consistent with patterns observed in 2023.
- Fraud Instruments:
- Card-based fraud saw a 54.2% increase from 11,237 cases in Q2 to 17,314 cases in Q3.
- Cash-related fraud surged by 125%, rising from 228 cases in Q2 to 517 cases in Q3.
- Exploited Channels:
Cybercriminals continued to target ATMs, online platforms (web and mobile banking), bank branches, and POS terminals to carry out their fraudulent activities.
The staggering figures in the FITC report underscore the increasing sophistication of cybercriminals and the urgent need for Nigerian banks to fortify their systems. While progress in fraud prevention is evident, the battle against cybercrime remains far from over.
