I don’t want to be remembered for my many fights — Obaseki

by Ekaete Bassey

A new report from Nigeria’s Financial Institutions Training Centre (FITC) has shed light on a rising wave of fraud that cost Nigerians ₦42 billion between April and June 2024.

The report highlighted how fraudsters targeted Point-of-Sale (POS) systems and mobile devices, with fraudulent activities involving the technologies reaching alarming levels.

The second-quarter report of 2024 recorded 11,532 cases of fraud, with a total value of ₦56.3 billion, marking a sharp increase from ₦34.8 billion in the first quarter. Out of this, ₦42.6 billion was successfully stolen, while financial institutions managed to recover ₦13.7 billion.

The report showed mobile fraud was the most prevalent, responsible for 33.4 percent of the reported incidents, followed by POS-related fraud at 24.6 percent.

These forms of fraud, it underlined, include scams carried out through mobile apps and internet banking platforms.

Web-based fraud accounted for 16.9 percent of the cases, underlining the growing sophistication of cybercriminals.

The FITC report also noted that most of the losses occurred at the bank branch level, where 95 percent of the total fraud value, approximately ₦54 billion, was recorded.

According to FITC, this points to a troubling increase in insider involvement, with 49 employees dismissed for their role in these schemes during the quarter.

The report indicated fraudsters continue to exploit weaknesses in both modern and traditional systems despite advancements in digital security.

While card-related fraud declined by 31.8 percent, there was a notable surge in cheque and cash fraud, underscoring the adaptability of criminals in Nigeria’s financial sector.

The FITC report urged financial institutions to adopt more sophisticated tools, such as artificial intelligence, to combat increasingly complex fraud schemes.

It also emphasised tougher regulatory oversight, continuous employee training, and enhanced security protocols as crucial steps in safeguarding the sector.

Recall that as Nigeria continues to digitise its economy, the surge in fraud highlights the ongoing struggle between financial institutions and the evolving tactics of cybercriminals. (Nation)