Connect with us

News

Fraud cases rise by 277% as 24 banks lose N9.75b in Q2 2023

Published

on

 

Deposit money banks in Nigeria have reported a sharp rise in fraud cases and the amount of money lost in the second quarter of 2023, Q2’23.

The latest report also shows that the number of insider involvement rose astronomically.

 

The total amount involved in the fraud cases during the period rose to N9.75 billion, up by a whopping 276.98 per cent from N2.58 billion in the preceding quarter, Q1’23.

The total losses to the incident amounted to N5.79 billion during the period, representing a staggering 1,125 per cent rise compared with N472 million lost in the first quarter (Q1’23).

This was revealed in the new report released yesterday by the Financial Institutions Training Centre, FITC, on Fraud and Forgeries in Nigerian banks for Q2’23.

FITC further noted that the losses were recorded by 24 banks that filed their returns on fraud cases for the period, adding that outsider involvement in the fraud cases dropped by 6.4 per cent, while staff involvement rose by 22.2 per cent within the period.

FITC is owned by the Banker’s Committee, which comprises the Central Bank of Nigeria, CBN, Nigeria Deposit Insurance Corporation, NDIC, all licensed banks, and discount houses in Nigeria.

READ  Again, bandits kill seven, rustle livestock in Zamfara community

It was established to provide innovative knowledge solutions and capacity building programmes that develop and strengthen resources for the Nigerian financial services sector.

According to the FITC report, fraudulent loans accounted for the highest loss at 94.35 percent with a value of N5.46 billion, followed by mobile fraud, which accounted for 3.39 per cent of the total loss amounting to N196 million.

The report stated: “During the second quarter of 2023, there were 11,679 reported cases, showing a 6.96 per cent decrease compared to the 12,553 cases in the first quarter. However, the data indicates a significant increase in the total amount involved in fraud cases. The amount rose from N2.59 billion in the previous quarter to N9.75 billion in Q2, representing a 276.98 per cent increase.

“Additionally, the amount lost also saw a substantial rise, increasing from N472 million in Q1 2023 to N5.79 billion in Q2 2023, which corresponds to an 1125.03 per cent increase. This increase might be attributed to the fact that banks were liable for the losses incurred and had to make refunds to customers.”

READ  Police raid Oyo transport leader, Auxiliary’s home, recover weapons

It further stated: “In Q2 2023, there was a 6.40 percent decrease in outsider involvement in fraud cases, with the number dropping from 12,351 cases in the previous quarter to 11,561 cases. However, staff involvement in fraud increased by 22.22 per cent, rising from 72 cases in Q1 2023 to 88 cases in Q2 2023. Conversely, the number of terminated appointments related to fraudulent activities decreased by 26.67 per cent, going from 15 cases in Q1 2023 to 11 cases in Q2 2023.”

Reacting, Association of Senior Staff of Banks, Insurance Institution, ASSBIFI, said it is a sad development for the nation’s banking industry, blaming the rising cases of staff involvement on casualisation of workers and other forms of non-pensionable employment practices in the financial sector.

‘Sad development’

President of ASSBIFI, Olusoji Oluwole, told Vanguard: “This is a sad development in the banking industry. We had warned of this problem when the employment of contract workers without due diligence through third party organizations began to increase. These classesof workers without a clear career path, job security or even pension have become potential risks which are already crystallizing.

READ  PDP slams Buhari over move to promote indicted Magu

“ASSBIFI, after about 10 years of struggle eventually got the document regulating casualisation signed by the Minister of Labour and Employment. Unfortunately some organisations are yet to adopt this regulation and the sooner this happens the better as we believe this will reduce the cases of staff-related fraud in the industry.”

Corroborating, ASSIBIFI’s Senior Assistant Secretary General, Anthony Emeh, said: “It is obvious that banks did not carry out aggressive orientation and training of staff, ensure that casualisation is discouraged and emphasis is placed more on employment of permanent staff.

Artificial Intelligence, AI, can also be adopted in some of their activities and the bank should ensure a strong internal control mechanism.

“The banks should also ensure that adequate remuneration of staff is put in place, encourage staff fraternity, interaction and also create minimal conflicts to track down impending frauds. The banks should overhaul staff, adopt a strong information technology system in all areas of banking activities, ensure strict reporting systems and ensure that fraudsters are prosecuted to serve as deterrents.”

 

 

Continue Reading
Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

News

We have done better than those who stayed eight years – Fubara

Published

on

By

 

Governor Siminalayi Fubara believes his administration has recorded giant strides in infrastructure since its inception about a year ago.

 

Fubara made the remark on Saturday in Ngo Town at the inauguration of the Andoni section of the Ogoni-Andoni-Opobo Unity Road project, Andoni Local Government Area.

 

While he did not mention any past administration, Fubara said since coming on board, his government has done well in the execution of projects, promising to do more for residents of the oil-rich state.

 

To the glory of God, we made history by commissioning the Andoni section of the Ogoni-Andoni-Opobo Unity Road.

The commissioning marks the end of a 24-year journey of constructing a road that connects three local government areas hitherto separated by water and a difficult… pic.twitter.com/NdsFhqYPkn

— Siminalayi Fubara (@SimFubaraKSC) May 18, 2024

 

“Like I said the other day, we just started. We started about three or four months ago but I am very happy that if we have to assess ourselves within that three months, we have done better than people who stayed for eight years,” the governor said. “I stand to be challenged.”

READ  Reactions as Nigerians dominate UK varsity’s graduation list

Continue Reading

News

Good Morning! Here Are Some Major News Headlines In The Newspapers This Beautiful Sunday: Soldiers storm Abuja market over attack on colleagues

Published

on

By

 

1. Soldiers on Saturday stormed Banex Market in Abuja over the assault on some of their colleagues. A mob had descended on at least two soldiers in the markets where electronic gadgets and mobile phones are mostly sold. Some traders closed for the day and fled home to apparently avoid being caught up in a reprisal attack.

 

2. Africa’s richest man and chairman of the Dangote Group, Aliko Dangote, says with the plan by the Dangote Refinery, Nigeria will not need to import gasoline by June, this year. Speaking at the Africa CEO Forum Annual Summit in Kigali on Friday, he said the refinery had started supplying diesel and aviation fuel in Nigeria.

 

3. The Oba of Benin, Omo N’Oba N’Edo, Uku Akpolokpolo, Ewuare II, has received two looted royal stools carted away during the invasion of Benin City in 1897, from the German government. The artefacts — bronze and wooden royal stools (Ekete), were looted during the reign of Oba Eresoyen and Oba Esigie several centuries ago.

READ  Police raid Oyo transport leader, Auxiliary’s home, recover weapons

 

4. President Bola Ahmed Tinubu has appointed former Secretary to the Government of the Federation, Alhaji Yayale Ahmed, former Bauchi Governor, Alhaji Isa Yuguda, and former INEC Chairman, Prof Attahiru Jega, and others to serve in the newly released list of federal universities’ governing councils.

 

5. Rivers Governor, Siminalayi Fubara has lamented that his administration only settled down to work three months ago due to the crisis rocking the State. Fubara said despite the delay, his government had achieved better project and service delivery than the eight years of government of some other administrations.

 

6. Tragedy struck in Ode-Omu town in Ayedaade local government area of Osun State on Saturday after a private car crushed a mother and two children returning from vigil to death. It was gathered that they were crushed to death while on a motorcycle. The rider simply identified as Abraham also died.

 

7. The presidency has dismissed the planned alliance between former Vice President Atiku Abubakar and former governor of Anambra State, Peter Obi. According to the presidency, President Bola Tinubu is not bothered about the planned alliance, noting that the President was not losing sleep.

READ  Finally, ASUU suspends eight-month-old strike

 

8. A yet-to-be-identified middle-aged man has died while watching football at a local bar along the Lagos-Abeokuta Expressway. It was gathered that the incident happened on Thursday, May 16. The deceased, who was a regular customer in the open bar, was said to have walked in, sat down, and started to watch a football match until he fell asleep.

 

9. The Nigeria Security and Civil Defence Corps Commandant General’s Special Intelligence Squad has dismantled an illegal refining site containing over 100,000 litres of stolen crude oil in Adobe settlement, Etche Local Government Area, Rivers State. The Commander of the CG’s SIS, Dandaura Apollos, said the success resulted from credible intelligence indicating that suspects had vandalised a multinational company’s wellhead.

 

10. The Adamawa State Police Command has arrested a 23-year-old stepmother, Rachel Geoffrey, for allegedly inflicting severe burns on her 7-year-old and 3-year-old stepchildren. According to the police, the stepmother intentionally set fire to the children’s hands as punishment for eating food she had saved for their father.

READ  Police arrest ‘wanted bandit’ Babangida in Zamfara, recover AK-47 rifles, other weapons

Continue Reading

News

FG reconstitutes governing councils for 111 public tertiary institutions

Published

on

By

 

The Federal Government (FG) has approved the re-constitution of governing councils at public tertiary institutions.

 

Folasade Boriowo, media head at the federal ministry of education, confirmed this on Saturday.

 

In June 2023, the National Universities Commission (NUC) dissolved the councils of all federal varsities on a presidential directive.

 

The federal directive also affected the governing boards of government-funded parastatals, agencies, and institutions in education.

 

It stalled administrative decision-making in public tertiary institutions by mandating these universities, colleges of education, and federal polytechnics to seek ministerial approval for functions previously overseen by the governing board or councils.

 

The re-constitution of governing councils now comes after 11 months of repeated calls from education stakeholders.

 

Among them is the Academic Staff Union of Universities (ASUU) which argued that the non-reinstatement or reconstitution of governing councils in universities was causing an uptick in cases of “illegality and flagrant violation” of institutional autonomy in public universities.

READ  PDP crisis: You lack the power to crush anybody, Secondus replies Wike

 

Chris Maiyaki, the NUC’s executive secretary, said a committee was set up to ensure the most qualified people are put in the councils.

 

“As soon as they are constituted, they will be made to undergo orientation courses immediately, to ensure they are in tune with the expectations of the knowledge of government structures and laws of institutions,” the NUC head had stated.

 

“It will also help them to understand those cross-cutting issues that we need to nip in the bud, to ensure our institutions regain their glorious paths.”

Continue Reading

Trending News