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Nigerian banks lose N468bn to fraud in Q1 2024: Report

Nigerian banks reported a loss of N468 billion due to fraudulent activities in the first quarter of 2024, marking a significant decline compared to the N2.09 billion recorded in the previous quarter, Q4 2023.

This was disclosed by the Financial Institutions Training Centre (FITC) in its Report on Fraud and Forgeries in Nigerian Banks for Q1 2024, released on Monday.

The report indicated that Nigerian banks lost N468.42 million in Q1 2024, a notable decrease from the N2.09 billion loss recorded in Q4 2023.

The decline in fraudulent activities also extended to the number of cases reported.

“For Q1 2024, a total of eleven thousand, four hundred and seventy-two (11,472) cases were reported, and when compared to the twelve thousand, four hundred and five (12,405) cases recorded in the Q4 2023, a 7.52 per cent decrease is noted,” the FITC report stated.

Computer/web fraud, mobile fraud, and POS-related fraud remained the top three prevalent forms of fraudulent activity, consistent with trends observed in the previous quarter.

According to the report, mobile fraud was the most significant contributor to the total losses, accounting for 46.29 percent of the total fraud losses recorded by banks in Q1 2024, with a value of N216.83 million. Computer/web fraud accounted for 17.00% of the losses, totaling N79.61 million.

“During Q1 2024, fraudulent activities were conducted through various channels, which included ATMs, online platforms such as web and mobile banking, bank branches, and point-of-sale (POS) terminals.

“In the first quarter of 2024, cards were the only instrument for fraud that recorded an increase, while the use of cheques and cash recorded relatively lower fraudulent activities when compared to the previous quarter.

“Specifically, there was a 31.12% rise in fraud cases through the POS Channel, rising from 2,683 cases in Q4 2023 to 3,518 cases in Q1 2024. Similarly, the number of fraud cases through the Mobile Channel increased by 0.45%, rising from 3,173 cases in Q4 2023 to 3,393 cases in Q1 2024,” FITC detailed in the report.

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