Nigerian Banks Lose N2.99 Billion to Fraud in Q1 2024

Nigerian banks had a significant decline in financial fraud losses in the first quarter of 2024, with losses falling by 77.62% compared to the previous quarter.

The Financial Institutions Training Centre (FITC) has released a report on bank fraud in Nigeria.

According to the research, Nigerian banks lost N468.42 million in the first quarter, which is significantly lower than the N2.09 billion they lost in the fourth quarter of 2023.

The total amount involved in fraud cases likewise decreased by 56.73%, from N6.91 billion in Q4 2023 to N2.99 billion in Q1 2024.

There were also fewer fraudulent cases reported. In Q1 2024, banks reported 11,472 cases, down 7.52% from 12,405 in Q4 2023. The most common types of fraud were computer/web, mobile, and point-of-sale fraud.

Mobile fraud caused the highest losses, accounting for 46.29% (N216.83 million) of the total in Q1 2024. Computer/web fraud accounted for 17.00%, resulting in losses of N79.61 million.

Fraud occurred via a variety of channels, including ATMs, online banking, bank branches, and POS terminals.

Notably, fraud through POS channels increased by 31.12%, from 2,683 in Q4 2023 to 3,518 in Q1 2024. Mobile fraud instances also rose by 0.45%, from 3,173 in Q4 2023 to 3,393 in Q1 2024.

Although fraud losses have decreased, FITC advises banks to remain vigilant and enhance fraud protection measures.

They proposed that banks leverage modern technology such as artificial intelligence (AI), machine learning (ML), and robotics process automation (RPA) to detect and prevent fraud.

Overall, while the drop in fraud losses is positive, banks must continue to invest in technology and be cautious in order to improve.

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