NIGERIA — In the first quarter of 2023, bank customers in Nigeria experienced a significant loss of N472m due to fraudulent activities, as revealed by a report from FITC. The report, obtained from the website of FITC, highlighted a total of 12,553 recorded cases of fraud during this period. However, despite the alarming figures, there was a notable decline in losses compared to the previous quarter.
During Q4 2022, fraudsters caused a staggering N3.18bn loss across banking platforms, indicating an impressive 85.13% decrease in losses during Q1 2023. Additionally, the total amount involved in fraud cases also saw a substantial 79.44% decrease, dropping from N12.58bn to N2.59bn. Furthermore, the total number of fraud cases reported in Q1 2023 decreased by 14.07% compared to the preceding quarter, with 12,553 cases reported compared to 14,609 previously.
The report attributed the majority of fraud occurrences to mobile, computer/web, and Point of Sale (PoS) transactions, consistent with the trends observed in the previous quarter. Mobile fraud took the lead in terms of magnitude, accounting for N1.1bn (42.72%), followed by computer/web fraud at N646m (24.99%). PoS fraud ranked third with N450m (17.41%), while fraudulent withdrawals accounted for N139m (5.36%).
Analyzing the distribution of losses in Q1 2023, the data showed that mobile fraud constituted 34.07% (N161m) of the total amount lost, with computer/web fraud following closely at 27.69% (N130m). Fraudulent withdrawals represented 24.72% (N116m) of the losses.
While the report highlights the concerning prevalence of fraud in Nigeria's banking sector, it also brings some relief by indicating a decline in losses compared to the previous quarter. The findings underscore the importance of continued efforts by financial institutions, regulatory bodies, and customers to enhance security measures and stay vigilant against fraudulent activities.
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