Banks lose N18bn to fraudsters -NIBSS

The Nigeria Inter-Bank Settlement System has said that financial institutions lost about N17.67bn to fraud in 2023. This was disclosed in ...

The Nigeria Inter-Bank Settlement System has said that financial institutions lost about N17.67bn to fraud in 2023. This was disclosed in its Annual Fraud Landscape (January to December 2023) which was published on its website on Monday. NIBSS incorporated in 1993 provides a mechanism for same-day clearing and settlement of inter-bank transfers and payments According to the report, the fraud count decreased by six per cent to 95,620. However, actual loss from fraud increased by 23 per cent in 2023 when compared to 2022 with the first quarter being the month with the highest fraud volume in 2023 and the fourth quarter being the month with the highest fraud value. The month of May recorded the highest fraud count of 11,716, followed by February with 9,492 while October saw the highest actual loss in 2023 at N3.7bn, followed by January with N2.7bn. According to the data submitted to NIBSS by financial institutions via the Industry Fraud Reporting Portal, the mobile channel remains the preferred means for fraud as it increased by five per cent compared to the previous year. It was also reported that the Web and POS channels were the most exploited payment channels by fraudsters in 2023. The count of Web Fraud decreased by 38 per cent and ATM fraud recorded a 64 per cent reduction from 2022 to 2023. In the year under review, individuals aged 40 and above remained the primary targets of fraudsters, which NIBSS said signified a persistent focus on the targeting strategy of fraudsters. “This sustained trend emphasizes the enduring appeal of the demographic group as potential victims, reinforcing the need for continuous efforts to educate and protect individuals in this category from fraudulent activities,” NIBSS said. In 2023, a total of 80,658 unique customers fell for the gimmicks of fraudsters which is four per cent less than 84,130 customers recorded in the previous year. “This decline, though apparent, does not diminish the severity of the issue, urging the financial industry to remain vigilant, enhance security measures and collaboratively address the tenacious challenges posed by fraud. Some regulations need thorough examination, modification, and reinforcement to reduce the potential for fraud and enhance the chances of successful recuperation,” the report maintained.