Fraud cases dominate Nigeria’s financial landscape in Q2 2024 — FITC

Fraud involving computer, mobile, and point-of-sale (POS) systems constituted the majority of cases reported in Nigeria’s financial sector during the second quarter of 2024, according to a new report by the Financial Institutions Training Centre (FITC).

The report revealed 11,532 fraud cases were recorded during this period, with a total value of N56.3 billion, up from N34.8 billion in the first quarter. Out of this, N42.6 billion was lost to fraudsters, while financial institutions successfully recovered N13.7 billion.

Computer, mobile, and POS-related fraud remained the most prevalent, continuing trends seen throughout 2023. Mobile fraud, including internet banking and app-based transactions, accounted for 33.4% of the cases, while POS and web-based fraud represented 24.6% and 16.9%, respectively.

The report also highlighted significant bank branch losses, accounting for 95% of the total fraud value. Insider threats were on the rise, with 49 bank employees dismissed for their involvement in fraudulent activities.

FITC underscored the growing sophistication of cybercrime and the need for advanced technology, such as artificial intelligence, to combat fraud. The institute also noted a shift in fraud tactics, with card-related fraud decreasing by 31.8%, while cheque and cash fraud surged, leading to substantial losses.

FITC called for enhanced regulatory oversight and continuous staff training to address the escalating fraud threats in Nigeria’s financial sector. The PUNCH reported that commercial banks alone lost N42.6 billion to fraud between April and June 2024.