Banks fraud, forgeries rise to N5.52bn


March 4, 2018 | 9:36 pm
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The value of fraud and forgeries in banking sector rose to N5.52 billion at the end of June 2017 from N4.12 billion at end of December 2016, according to the Central Bank of Nigeria (CBN).

The Financial Stability Report (FSR) release by the CBN on Friday also show that reported cases of fraud and forgeries increased to 16,762 at the end of June 2017 from 9,929 at the end of December 2016.

However, actual losses reduced from N1.003 billion toN0.78 billion at the end of June 2017, reflecting stringent internal control measures and enhanced risk management processes.

The reported cases involved robbery attacks, suppression and conversion of customer deposits, illegal fund transfers and fraudulent ATM withdrawals.

During the review period, mobile banking fraud continued to increase as a result of sim swap manipulation, identity theft via mobile devices and compromised customer details. Cybercrime also remained a key operational risk during the period due to increased use of technological platforms.

In May 2017, a global ransom ware outbreak occurred, attacking over 150 countries and infecting more than 250,000 computers simultaneously. In order to mitigate this class of operational risks, bank customers were sensitized on safe banking practices, while banks were encouraged to train their employees to identify suspicious emails and protect their web presence. In addition, banks were directed to operate 24-hour fraud desks manned by competent staff with the necessary investigative tools to promptly resolve fraud complaints.

An adhoc committee set up to investigate the activities of ‘MMM’ and other ponzi schemes had concluded its work and presented its recommendations on ways to prevent there occurrence of such fraudulent activities to the FSRCC in May, 2017. The FSRCC approved the recommendations of the ad-hoc committee, including the immediate shutdown of the websites of the illegal fund managers.




March 4, 2018 | 9:36 pm
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