Deposit Money Banks (DMBs) in Nigeria have reported a significant decline in fraudulent activities, with losses amounting to N468.42 million in the first quarter of 2024, down from N2.09 billion in the fourth quarter of 2023. This represents a 77.62% decrease, according to the Financial Institutions Training Centre (FITC) Report on Fraud and Forgeries in Nigerian Banks for Q1 2024, released on Monday.
The report also noted a 7.5% reduction in the number of fraud cases reported by DMBs, with 11,472 cases in Q1 2024 compared to 12,405 cases in Q4 2023.
“Nigerian banks lost N468.42 million in the first quarter, a substantial decline from the N2.09 billion loss recorded in Q4 2023,” the report read. “For Q1 2024, a total of 11,472 cases were reported, and when compared to the 12,405 cases recorded in Q4 2023, a 7.52% decrease is noted.”
The FITC report highlighted computer/web fraud, mobile fraud, and Point of Sale (POS) fraud as the top three prevalent forms of fraudulent activity, consistent with trends observed in the previous quarter. Mobile fraud accounted for 46.29% of the total losses, valued at N216.83 million, while computer/web fraud made up 17% of the losses.
“During Q1 2024, fraudulent activities were conducted through various channels, including ATMs, online platforms such as web and mobile banking, bank branches, and POS terminals,” the report stated. “In the first quarter of 2024, cards were the only instrument for fraud that recorded an increase, while the use of cheques and cash recorded relatively lower fraudulent activities compared to the previous quarter.”
The FITC report noted a 31.12% rise in fraud cases through the POS channel, with cases increasing from 2,683 in Q4 2023 to 3,518 in Q1 2024.
FITC urged commercial banks across the country to enhance their vigilance and implement advanced fraud detection technologies. The report recommended the use of Artificial Intelligence, Machine Learning, Robotics Process Automation, Advanced Analytics, and Predictive Modelling to address the situation effectively.
