Nigerian Banks Lose N42.6bn to Fraud in Q2 2024, Marking Dramatic Surge
Samuel Mobolaji
Nigerian banks have experienced a staggering loss of N42.6 billion due to fraud and forgery activities over a three-month period from April to June 2024, according to the Financial Institutions Training Centre (FITC) Q2 2024 Fraud and Forgeries Report released on Saturday.
This significant financial hit highlights a disturbing rise in fraudulent activities targeting local lenders.
The report, which aggregates data from 28 deposit money institutions across the country, reveals that the losses for Q2 2024 have far exceeded those from the entire year of 2023, where fraud-related losses amounted to N9.4 billion. The recent figure represents an alarming 8,993 percent increase compared to the N468.4 million lost in Q1 2024 and a 637 percent rise compared to the N5.7 billion lost in Q2 2023.
A closer look at the data shows that miscellaneous fraud types contributed to the largest share of losses, totaling N41.14 billion, which accounts for 96.46 percent of the total amount lost. This was followed by fraudulent withdrawals and computer/web fraud, with losses of approximately N781.2 million and N400.7 million, respectively.
In response to this crisis, FITC has urged Nigerian banks to enhance their access controls and security measures. Recommendations include restricting access to settlement files to a small, vetted group of authorized personnel and implementing multi-factor authentication and role-based access controls to minimize the risk of unauthorized changes.
“The implementation of robust security protocols and regular training on the latest security measures are crucial in combating these rising threats,” FITC stated in the report.
The sharp increase in fraud losses underscores the urgent need for banks to reinforce their security infrastructure to safeguard against escalating threats in the financial sector.