Nigerians Lose ₦42 Billion To POS, Mobile Phone Frauds Between April, June 2024 – Report

Fraud involving computers, mobile devices, and point-of-sale (POS) systems dominated fraudulent activities across Nigeria during the second quarter of 2024.

This was revealed in the latest fraud report by the Financial Institutions Training Centre (FITC), which recorded a total of 11,532 fraud cases in the period under review.

According to the report, computer/web fraud, mobile fraud, and POS-related fraud emerged as the most frequent, continuing a pattern observed throughout 2023 and into the first quarter of 2024.

The total value of fraud in the second quarter was reported at ₦56.3 billion, marking a significant rise from the ₦34.8 billion documented in the first quarter of the year.

Of this amount, ₦42.6 billion was successfully stolen by fraudsters, while financial institutions managed to recover ₦13.7 billion.

Mobile fraud, including fraud carried out via mobile apps and internet banking, accounted for 33.4% of the total cases, making it the largest category.

POS-related fraud followed closely, contributing 24.6% of cases, while web-based fraud represented 16.9% of the total fraud incidents.

The report also highlighted computer-based fraud as a growing concern, showcasing the increasing threat posed by cybercriminals within Nigeria’s financial landscape.

FITC’s findings indicated that bank branches bore the brunt of the losses, with 95% of the total fraud value occurring at the branch level.

Despite advancements in technology, fraud continued to be perpetrated both by external actors and insiders, with 49 employees being dismissed for their involvement in fraudulent activities during the quarter.

The report also ranked fraud by magnitude, revealing that bank branches lost approximately ₦54 billion, which accounted for a staggering 95.63% of the overall fraud amount.

Web-based fraud followed with losses of ₦1.2 billion (2%), while POS and mobile fraud each contributed around 1%, resulting in ₦651 million and ₦547 million losses, respectively.

Notably, the report observed a 31.8% decline in card-related fraud. However, cheque and cash fraud surged significantly, leading to substantial financial losses.

This rise in cash-related fraud underscored that criminals are still exploiting traditional financial tools to their advantage.

FITC stressed the urgency of leveraging advanced technology, including artificial intelligence, to combat the rising complexity of fraud in Nigeria’s financial sector.

The report called for proactive measures, such as bolstered security systems and continuous training of staff, as critical to reducing fraud.

As fraudsters exploit both modern and traditional channels to target financial institutions, FITC emphasised the need for tighter regulatory oversight and the adoption of cutting-edge technology to protect the financial sector from future threats.

The report also disclosed that commercial banks lost a total of ₦42.6 billion to fraud and forgeries between April and June 2024.

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