Fraud involving computer systems, mobile platforms, and point-of-sale (POS) terminals has dominated the landscape of fraudulent activities in Nigeria during the second quarter of 2024, according to a new report by the Financial Institutions Training Centre (FITC). The report, which covers the period from April to June 2024, reveals a sharp rise in fraud cases and financial losses across the sector.
The FITC report recorded a total of 11,532 fraud cases in Q2 2024, marking a significant increase from previous periods. The total value of fraud during this quarter amounted to N56.3 billion, up from N34.8 billion in the first quarter of the year. Of this amount, N42.6 billion was lost to fraudsters, while financial institutions managed to recover N13.7 billion.
The report highlights that computer/web fraud, mobile fraud, and POS-related fraud were the most prevalent types of fraudulent activities. Mobile channel fraud, including mobile apps and internet banking, accounted for 33.4% of the cases, followed by POS-related fraud at 24.6%, and web-based fraud at 16.9%. Computer-based fraud also remained a significant concern, reflecting the growing threat of cybercrime within Nigeria’s financial sector.
Bank branches bore the brunt of the losses, with 95% of the total fraud value being recorded there. FITC’s report indicated that despite advancements in technology, both insider and outsider threats persist, with fraudulent activities involving both bank staff and external perpetrators. Notably, 49 employees were dismissed for their involvement in fraud during the quarter.
The report also detailed a shift in fraud tactics. While card-related fraud decreased by 31.8%, cheque and cash fraud cases saw a significant increase. The rise in cash-related fraud is particularly alarming, suggesting that fraudsters continue to exploit traditional financial instruments.
FITC emphasized the importance of leveraging artificial intelligence and advanced technology to combat increasingly sophisticated fraud schemes. The report advocates for enhanced security measures and continuous staff training as essential strategies for mitigating fraud risks.
In light of the rising fraud cases and financial losses, FITC called for stricter regulatory oversight and the adoption of cutting-edge technology to protect Nigeria’s financial landscape from future threats.