Fraud involving computer, mobile, and point-of-sale (POS) systems accounted for the majority of fraudulent activities in Nigeria during the second quarter of 2024, according to the latest report by the Financial Institutions Training Centre (FITC). A total of 11,532 fraud cases were recorded during the period under review.
The report highlighted that computer, mobile, and POS-related fraud continued to dominate, a trend carried over from 2023 and the first quarter of 2024. The total value of fraud in Q2 2024 was reported at N56.3 billion, a sharp increase from the N34.8 billion recorded in the first quarter.
Of the N56.3 billion, a staggering N42.6 billion was lost to fraudsters, while financial institutions managed to recover N13.7 billion. Fraud involving mobile channels, including mobile apps and internet banking, accounted for 33.4% of all reported cases, making it the most prevalent type. POS-related frauds followed closely, contributing 24.6%, while web-based fraud made up 16.9%.
The report also underscored the growing threat of cybercrime within Nigeria’s financial sector, as computer-based fraud featured prominently. Bank branches bore the brunt of the financial impact, recording 95% of total fraud losses.
FITC noted that both insider and outsider threats continue to challenge financial institutions despite technological advancements. It revealed that bank branches recorded a loss of around N54 billion, which represents 95.63% of the total fraud amount. Web-based fraud accounted for N1.2 billion (2%), while POS and mobile fraud contributed N651 million and N547 million, respectively.
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FITC also pointed out a shift in fraud tactics. Card-related fraud decreased by 31.8%, but there was a notable surge in cheque and cash fraud cases, resulting in substantial financial losses. The rise in cash-related fraud highlighted the ongoing exploitation of traditional financial instruments by fraudsters.
The report called for urgent action to combat the increasing sophistication of fraud, stressing the importance of artificial intelligence and advanced technology in mitigating these threats. FITC emphasized that enhanced security systems, continuous staff training, and stricter regulatory oversight are essential in protecting Nigeria’s financial landscape.
As commercial banks in Nigeria lost N42.6 billion to fraud between April and June 2024, the sector faces mounting challenges, with both new and traditional channels being exploited by fraudsters.
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