How fraudsters duped Nigerian bank customers N472m in three months

Joy Onuorah
Joy Onuorah
How fraudsters duped Nigerian bank customers N472m in three months

A recent report by FITC has unveiled a distressing reality for bank customers in Nigeria, as they lost a staggering N472 million to fraud in the first quarter of 2023.

The data, obtained from FITC’s website, further disclosed that a total of 12,553 cases of fraud were recorded during this period.

The report, compiled by FITC, whose institutional members include the Central Bank of Nigeria, the Nigeria Deposit Insurance Corporation, and all licensed banks in Nigeria, highlighted a slight decline in losses compared to the previous quarter.

In Q4 2022, fraudsters took away a total of N3.18 billion across various banking platforms, making the losses decline by 85.13% in Q1 2023.

Additionally, the FITC data revealed a significant decrease of 79.44% in the total amount involved in fraud cases during the first quarter of 2023 compared to the previous quarter, dropping from N12.58 billion to N2.59 billion.

The total number of fraud cases reported also witnessed a decline of 14.07%, with 12,553 cases reported in Q1 2023, in contrast to the 14,609 cases recorded in the preceding quarter.

Mobile, computer/web, and Point of Sale transactions remained the primary avenues for fraudulent activities, consistent with the trend observed in the previous quarter.

The report highlighted that mobile fraud held the highest ranking, accounting for N1.1 billion (42.72%), followed by computer/web fraud at N646 million (24.99%).

PoS fraud amounted to N450 million (17.41%), and fraudulent withdrawals stood at N139 million (5.36%).

The breakdown of losses in Q1 2023 showed that mobile fraud accounted for 34.07% at N161 million, closely followed by computer/web fraud at 27.69% (N130 million), and fraudulent withdrawals at 24.72% (N116 million).

These alarming figures underscore the urgent need for enhanced security measures and increased vigilance from both financial institutions and customers.

Protecting personal and financial information has become crucial in the face of evolving fraud techniques.

Stakeholders must collaborate to develop robust systems and educate bank customers to safeguard against these fraudulent activities.

As authorities strive to combat fraud and restore customer confidence, it is essential for individuals to remain cautious and employ preventive measures to mitigate the risk of falling victim to such scams.

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