Nigerian banks sacked 15 of their staff members between January and March this year for using their access to perpetrate fraud.
This is according to the Q1 2023 fraud and forgeries report just released by the FITC. The report also revealed that there was an 89.47% increase in the number of bank staff involved in fraud compared with the previous quarter.
While insider involvement in fraud stood at 38 in Q4 2022, the figure increased to 72 in the first quarter of this year, which led to the termination of appointments of 15. However, the amount lost to fraud across the banks in the period declined from N3.18 billion in the previous quarter to N472 million in Q1 2023.
A comparison of Fraud activities between the Fourth Quarter and First Quarter of 2023
Outsider involvement decreased
Highlighting the involvement of outsiders and insiders in the fraud cases reported by the banks, FITC in the report stated:
- “During the first quarter of 2023, there was a significant increase of 89.47% (from 38 staff to 72 staff) in the participation of bank employees in fraudulent activities. Additionally, there was an 8.08% decrease in outsider involvement in fraudulent activities, with the number decreasing from 13,436 outsiders in the previous quarter to 12,351 in Q1 2023.”
The total number of fraud cases reported in Q1 2023 also declined by 14.07%. According to the report, a total of 12,553 cases were reported in the first quarter of this year compared with 14,609 cases recorded in the preceding quarter. The numbers in Q1 2023 reveal that of all the fraud activities, mobile, computer/web, and PoS were the top three channels with the highest number of fraud occurrences. This is consistent with the trend from the previous quarter.
Mitigating fraud
To minimize fraud in the banking system, FITC advised the banks to implement adequate segregation of duties, regularly review and reconcile transactions, and limit access to sensitive data. While emphasizing the need for full disclosure and cooperation with the security agencies, FITC said:
- “It is crucial for Nigerian banks to collaborate closely with law enforcement agencies to investigate and prosecute cases of fraud. This entails sharing information on fraudulent activities, promptly reporting incidents, and providing assistance in investigations. By collaborating with law enforcement agencies, banks can help to bring fraudsters to justice and deter other potential offenders. This, in turn, can promote a safer and more secure banking environment for all stakeholders.”
FITC is a not-for-profit professional organisation with members of the Central Bank of Nigeria (CBN), the Nigeria Deposit Insurance Corporation (NDIC), and all licensed banks in Nigeria.
