The Financial Institution Training Center (FITC) has revealed a notable reduction in the amount of money lost to fraud cases by Nigerian banks in the first quarter of 2024, 9am news nigeria reports. According to the “Fraud and Forgeries Report in Nigerian Banks for Q1 2024” obtained by Ogasabi, the total losses amounted to N468.2 million. This marks a substantial improvement compared to the N2.09 billion lost in the fourth quarter of 2023.
Decrease in Fraud Cases
The FITC report, as cited by 9AM News Nigeria, highlighted a significant decrease in the total sum involved in fraud cases, dropping from N6.91 billion in Q4 2023 to about N2.99 billion in Q1 2024—a 56.7% reduction. Additionally, there was a 7.52% decrease in the number of fraud cases reported, from 12,405 cases in Q4 2023 to 11,472 cases in Q1 2024.
Fraud Channels and Instruments
The report noted that the primary mediums for fraudulent activities were POS terminals and computer/mobile phone platforms. In Q1 2024, fraud cases through POS channels increased by 31.12%, rising from 2,683 cases in Q4 2023 to 3,518 cases. Similarly, fraud cases via mobile channels saw a slight increase of 0.45%, from 3,173 cases to 3,393 cases. On the other hand, fraudulent activities involving checks and cash remained relatively low compared to the previous quarter.
Recommendations to Mitigate Fraud
To combat fraud, the FITC report, as highlighted by 9AM News Nigeria, provided several recommendations:
- Banks should enhance vigilance and maintain a strong defense against fraud.
- Implement advanced fraud detection technology to monitor suspicious accounts and identify abnormalities.
- Integrate artificial intelligence systems to detect and prevent potential threats.
By following these recommendations, Nigerian banks can further reduce the incidence of fraud and protect their financial assets, 9am News.
