The Financial Institutions Training Centre has reported a substantial decrease in financial fraud losses among Nigerian banks for the first quarter of 2024. According to their latest “Report on Fraud and Forgeries in Nigerian Banks for Q1 2024,” the losses to financial fraud plummeted by 77.62% compared to the preceding quarter.
In specific figures, Nigerian banks incurred losses amounting to N468.42 million in Q1 2024, a stark contrast from the N2.09 billion recorded in Q4 2023. This significant reduction reflects improved security measures and vigilance by financial institutions across the country.
The report further details that the total amount involved in fraudulent activities during Q1 2024 was N2.99 billion, marking a notable 56.73% decline from the N6.91 billion reported in Q4 2023. This downturn not only underscores improved prevention efforts but also indicates a decrease in the frequency of reported fraud cases.
According to FITC, Nigerian banks reported a total of 11,472 fraud cases in Q1 2024, showing a 7.52% decrease compared to the 12,405 cases reported in the previous quarter. The most prevalent forms of fraud identified include computer/web fraud, mobile fraud, and POS-related fraud, which continue to dominate despite the overall decline.
Mobile fraud accounted for 46.29% of the total losses recorded in Q1 2024, amounting to N216.83 million, while computer/web fraud contributed 17.00%, totaling N79.61 million.
The report highlighted that fraudulent activities were carried out through various channels such as ATMs, online platforms including web and mobile banking, bank branches, and point-of-sale terminals.
Interestingly, while card-related fraud saw an increase, fraud cases involving cheques and cash remained relatively low in Q1 2024. The POS channel experienced a significant rise in fraud cases, increasing by 31.12% from 2,683 cases in Q4 2023 to 3,518 cases in Q1 2024.
Similarly, fraud cases via the Mobile Channel increased marginally by 0.45%, from 3,173 cases to 3,393 cases during the same period.
FITC commended the banks for their efforts in reducing fraud activities and urged them to enhance their fraud control measures further. It emphasized the importance of adopting advanced fraud detection technologies such as Artificial Intelligence, Machine Learning, Robotics Process Automation, Advanced Analytics, and Predictive Modeling to proactively monitor transactions for suspicious patterns and anomalies.
Looking ahead, FITC stressed the necessity for continuous vigilance and improvement in fraud prevention strategies to sustain the decline in financial fraud across Nigerian banks.
This report highlights a positive trajectory in combating financial fraud in Nigeria, reflecting the industry’s ongoing commitment to safeguarding customer assets and maintaining trust in financial transactions.
