Nigerian Banks Report Record Losses of N42.6Billion to Fraud in Just Three Months, FITC Report Shows

Nigerian commercial banks have reported a staggering loss of N42.6 billion due to fraud and forgeries over a three-month period from April to June 2024. This figure, disclosed by the Financial Institutions Training Centre (FITC), surpasses the total amount lost to fraud throughout the entire year of 2023.

The FITC's Q2 2024 Fraud and Forgeries report, released on September 15, 2024, highlights an alarming increase in fraudulent activities across various banking platforms. The report is based on data collected from 28 deposit money institutions in Nigeria, which submitted a total of 80 fraud and forgery cases during the quarter. Specifically, 26 reports were filed in April, followed by 27 each in May and June.

According to the FITC, the losses in Q2 2024 represent an 8,993% increase compared to the N468.4 million lost in Q1 2024. When compared to Q2 2023, where the losses amounted to N5.7 billion, the increase is a staggering 637%.

"Miscellaneous and other fraud types constituted the largest loss, representing 96.46% of the total amount lost, with a value of N41.14 billion," the report stated. This was followed by losses from fraudulent withdrawals and computer/web fraud, amounting to approximately N781.2 million and N400.7 million, respectively.

Fraudulent activities were carried out through various channels, including ATMs, online platforms like web and mobile banking, bank branches and point-of-sale terminals. While card fraud saw a significant decrease of 47.66%, declining from 21,469 cases in Q1 to 11,237 in Q2, incidents involving cheques and cash increased by 36.67% and 9.09%, respectively.