Nigerian banks lost a total of N2.09 billion to frauds in Q4 2023 with mobile emerging as the top channel through which the largest amount was lost.
This was revealed in the latest Fraud and Forgeries report released by the Financial Institutions Training Centre (FITC). According to the report, the N2.09 billion loss recorded in Q4 was a 77.58% increase compared with N1.18 billion lost by the banks in Q3 2024.
FITC in the report also revealed that a total of 12,405 cases of fraud were recorded in Q4 2024. When compared to the 12,066 cases recorded in Q3, this shows a 2.81% increase.
However, in terms of the actual loss through the channels, FITC said mobile fraud accounted for the highest loss at 17.039% with a value of N356.57 million, while suppression of cash entries accounted for 3.75%, totaling N78.45 million.
Source: FITC Fraud and Forgeries report
The report noted that there was an overall increase in the amount lost across all channels except for Bank Branch which recorded a decline and Van and Agents which didn’t record any fraud cases, while the amount lost via the web, bank branch, and PoS channel decreased.
Advising the banks to respond adequately to the rising cases of fraud, FITC said Nigerian banks will need to invest heavily in upgrading and fortifying their digital infrastructure. This, it said, involves implementing cutting-edge cybersecurity measures, robust identity verification systems, and real-time transaction monitoring.
According to the organization, regular security audits and penetration testing are essential for promptly identifying and addressing system vulnerabilities.
It added that following these recommendations would empower Nigerian commercial and merchant banks to better protect themselves and their customers against fraud and forgeries in the current situation.