The report of fraud and forgeries in Nigerian banks during the third quarter of 2022 revealed that mobile banking fraud has the highest ranking, accounting for N2.67 billion loss, which is 27.75%, and was followed by computer and web fraud at N2.62 billion. This resulted in an increase in fraudulent withdrawals, which were at 22.64%, accounting for an N2.18 billion loss. This alarming rate could be attributed largely to technological advancements that have made it easier than ever before for criminals to access banking channels such as ATMs, mobile banking apps, POS terminals, and bank branches via various devices, which have resulted in 112 cases being reported compared with 73 cases just one quarter prior.
The total sum reported as involved in these fraudulent activities increased slightly by 9.50% to N9.62 billion from N8.78 billion recorded in Q2 2022. While the amount lost due to such incidents rose significantly by 207.94% from N1.17 billion in Q2 2022 to N3.62 billion in Q3 2021, showing an alarming rise in the rate of crime within Nigerian banks, The use of technology has made it easier for criminals to use various channels and platforms to better carry out their nefarious activities.
The return of payment channels has been a major concern in the financial sector. This is due to the increasing amount of fraud that can be committed through them. A recent analysis shows that POS and USSD fraud channels have seen an increase in losses from N4.55 million to N224 million over a period of time, which is quite alarming for banks and other financial institutions that rely on these services for their operations.
This significant rise in losses can be attributed to several factors, such as inadequate security measures, a lack of awareness among customers about potential risks associated with using these payment methods, or even malicious actors taking advantage of loopholes within existing systems to commit fraudulent activities like identity theft or money laundering, etc.
