Nigerian Banks Reduce Fraud Losses by 77.62% in Q1 2024

Nigerian banks experienced a significant decrease in financial fraud losses during the first quarter of 2024, with the amount lost dropping by 77.62% compared to the previous quarter. According to the Financial Institutions Training Centre (FITC) in its Report on Fraud and Forgeries Report in Nigerian Banks for Q1 2024, banks lost N468.42 million in Q1 2024, a substantial decline from the N2.09 billion lost in Q4 2023.

The report also highlighted a 56.73% decrease in the total amount involved in fraud, from N6.91 billion in Q4 2023 to N2.99 billion in Q1 2024. The number of reported fraud cases also fell by 7.52%, from 12,405 in Q4 2023 to 11,472 in Q1 2024.

Channels and Types of Fraud

Mobile fraud was the most prevalent form, accounting for 46.29% of total losses (N216.83 million). Computer/web fraud followed, making up 17.00% of the losses (N79.61 million). The report also noted an increase in fraud cases through POS channels by 31.12%, rising from 2,683 cases in Q4 2023 to 3,518 in Q1 2024, and a slight increase in mobile channel fraud cases by 0.45%, from 3,173 in Q4 2023 to 3,393 in Q1 2024.

Call for Increased Vigilance

Despite the decline, FITC emphasized the need for banks to remain vigilant and continuously enhance their fraud control activities. They recommended the adoption of advanced fraud detection technologies such as Artificial Intelligence, Machine Learning, Robotics Process Automation, Advanced Analytics, and Predictive Modelling to identify and proactively detect fraud patterns.