Fraud involving computer systems, mobile devices, and point-of-sale (POS) terminals was predominant in Nigeria during the second quarter of 2024, according to the latest report from the Financial Institutions Training Centre (FITC).
The report, detailing 11,532 fraud cases, highlights a significant rise in fraudulent activities compared to earlier in the year. The total value of fraud in Q2 amounted to N56.3 billion, up from N34.8 billion in Q1 2024. Of this, N42.6 billion was lost to fraudsters, while N13.7 billion was recovered by financial institutions.
Mobile fraud, including mobile apps and internet banking, represented the largest share of fraud cases, accounting for 33.4% of the total. POS-related fraud followed at 24.6%, with web-based fraud making up 16.9% of the cases.
**Key Findings:**
– **Bank Branches:** Recorded the highest losses, totaling 95% of the overall fraud amount.
– **Fraud Categories:** Computer-based fraud remains a significant concern, reflecting the growing threat of cybercrime.
– **Staff Involvement:** There was an increase in staff-related fraud, with 49 employees dismissed during the quarter.
– **Fraud Types:** Card-related fraud decreased by 31.8%, while cheque and cash frauds surged, highlighting the continued exploitation of traditional financial instruments.
FITC stresses the need for enhanced security measures and advanced technology, including artificial intelligence, to combat increasingly sophisticated fraud tactics. The report underscores the importance of stricter regulatory oversight and continuous staff training to safeguard the financial sector.
For further updates and measures to address these issues, stay tuned.
