Fraud cases involving computer, mobile, and point-of-sale systems dominated the fraudulent activities reported in Nigeria during the second quarter of 2024.
According to the latest fraud report from the Financial Institutions Training Centre, a total of 11,532 fraud cases were recorded during this period.
The rise in these cases highlights the growing vulnerabilities in digital financial systems as cyber threats continue to evolve.
“Computer/web fraud, mobile fraud, and POS-related fraud were the three most prevalent types, continuing the trend observed throughout 2023 and into the first quarter of 2024,” the report indicated.
According to the Financial Institutions Training Centre’s latest report, the total value of fraud reported in Nigeria during the second quarter of 2024 soared to N56.3 billion, up from N34.8 billion in the first quarter.
Of this amount, N42.6 billion was lost to fraudsters, while financial institutions managed to recover N13.7 billion.
Mobile channels, including mobile apps and internet banking, were the most significant contributors to fraud cases, accounting for 33.4 percent of the total.
Point-of-sale (POS) fraud followed closely, representing 24.6 percent, with web-based fraud contributing 16.9 percent.
The report also highlighted the prevalence of computer-based fraud, emphasizing the increasing threat of cybercrime in Nigeria’s financial landscape.
Notably, bank branches bore the brunt of these fraudulent activities, experiencing 95 percent of the total fraud losses.
According to FITC, despite advances in technology, insider and outsider threats remain prevalent, with involvement from both staff and external fraudsters.
It noted that staff involvement in fraud increased, with 49 employees dismissed for their roles in fraudulent activities during the quarter.
“A magnitude-based ranking of fraud categories indicated that bank branches had the highest impact, with a total loss of around N54bn, comprising a substantial 95.63 per cent of the overall fraud amount. This was followed by web-based fraud, which accounted for N1.2bn (2 per cent), while POS and mobile fraud each contributed about 1 per cent, with N651m and N547m, respectively,” it explained.
The FITC report also noted a shift in fraud tactics, revealing a 31.8 percent decrease in card-related fraud. In contrast, cases involving cheques and cash saw a significant increase, contributing to substantial financial losses.
This trend underscores the evolving nature of fraud as criminals adapt their strategies to exploit vulnerabilities in different payment methods.
