In a remarkable turn of events, Nigerian banks experienced a substantial decrease in financial fraud losses during the first quarter of 2024. The Financial Institutions Training Centre (FITC) has reported a 77.62% reduction in these losses compared to the last quarter of 2023.
According to FITC’s latest Report on Fraud and Forgeries, Nigerian banks lost N468.42 million in Q1 2024, a significant drop from the N2.09 billion lost in Q4 2023. This decrease reflects a broader trend of declining fraudulent activities within the banking sector.
The report also noted a 56.73% reduction in the total amount involved in fraudulent activities, from N6.91 billion in the previous quarter to N2.99 billion in Q1 2024. This decrease in both the amount lost and the amount involved in fraud suggests that banks’ enhanced security measures and vigilance are yielding positive results.
Additionally, the number of reported fraud cases fell by 7.52%, from 12,405 cases in Q4 2023 to 11,472 cases in Q1 2024. The most common types of fraud remained consistent with previous trends, including computer/web fraud, mobile fraud, and POS-related fraud.
Mobile fraud emerged as the most significant contributor to financial losses, accounting for 46.29% of the total losses, with a value of N216.83 million. Computer/web fraud followed, representing 17.00% of the losses, amounting to N79.61 million. Fraudulent activities were conducted through various channels such as ATMs, online platforms, bank branches, and POS terminals.
Interestingly, while most channels saw a decrease in fraudulent activities, there was a notable increase in POS fraud cases, which rose by 31.12% from 2,683 cases in Q4 2023 to 3,518 cases in Q1 2024. Mobile fraud cases also saw a slight increase of 0.45%, from 3,173 to 3,393 cases over the same period.
Despite the overall decline in fraud losses, FITC emphasized the need for continued vigilance and improvement in fraud control measures by banks. The organization suggested that banks should leverage advanced technologies such as Artificial Intelligence (AI), Machine Learning (ML), Robotics Process Automation (RPA), and Advanced Analytics to detect and prevent fraudulent activities proactively.
The FITC report commended the progress made but warned that constant monitoring and adaptation are essential to maintain and further this downward trend in fraud losses.
With these encouraging trends, Nigerian banks are on a promising path toward significantly reducing fraud-related losses, ensuring greater financial stability and security for their customers.
