Access Bank, GTB and Fidelity Bank recorded 26,877 fraud cases in the first six months of the year, according to an analysis of their financial reports for the first half of 2022.
This is a 56.45% decrease from the 61,715 fraud cases recorded by the bank between June and December 2021.
According to Section 5.1.2 (L) of the CBN Code of Corporate Governance, Guarantee Trust Holdings and subsidiaries reported 15,004 incidents of fraud during the period under review.
The bank reported that the cases involved N1.55 billion and US$50,700, of which N158.37 million was recorded as actual/expected losses.
Likewise, Access Bank Plc reported fraud losses of N1.2 billion for the period. The bank recorded 10,706 fraud attempts in the first half of 2022.
About 7,104 attempts were successful and 3,602 failed.These attempts involved a total of 12.55 billion naira
According to the bank, 7,928 electronic/USSD fraud cases were recorded during the review period, with 849 successful attempts.
Fraudulent transfers/withdrawals/account reactivations involved the largest amount, with successful attempts worth N9.48 billion and actual losses worth N1.08 billion.
Other successful and unsuccessful fraud attempts fall into the following categories: cash theft/pressing/theft/dry posting, etc.
Fidelity Bank PLC recorded 1,167 incidents of fraud during the period under review. The amounts involved were N471.01 million and US$8,367, but the actual losses were N4.9 million and US$2,400.
According to the Nigerian Interbank Settlement System, Nigeria has one of the most advanced electronic payment capabilities in the world. It said improvements in transaction processing speeds and available channels have also created avenues for fraudulent transactions to flourish.
In its “NIBSS Insight: Financial Services Fraud in Nigeria” report, it said, “Statistically, even a 1% successful fraud rate results in 100,000 successful fraudulent transactions per day.
“This will directly impact customer confidence in the system as a whole and could have a significant impact on our financial inclusion drive as well as CBN’s cashless policy.”
Talking about its fraud risk management, GTCO said: “Causal analysis and reporting of major fraud and counterfeiting incidents (over-the-counter or cybercrime) detected within the group or prevalent in the local and global business environment.
“Probable and unlikely loss estimates are also identified during this process as input to OpRisk’s capital calculation process. Fraud risk management focuses on ensuring that processes to prevent, deter, detect incidents of fraud and counterfeiting, and sanction offenders are effective .”
Olugbenga Odeyemi, ICT expert and senior partner at e86 Limited, commented that several fraud cases required the involvement of bank insiders.
“Some of the hacking and fraud cases we’ve seen happen not because of a lack of security on the bank’s electronic platform, but because of poverty, greed, and sometimes a lack of education of customers,” he said.
“In addition to requiring banks to invest more in the security of their platforms, it is equally important for banks to devote more resources to educating customers.
“That said, several cases of fraud would not have happened without the help of some bank insiders. I think Nigerian banks should spend more on employee benefits while doing proper internal processes starting from the recruitment process Change.”