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Fraud involving mobile, computer, and point-of-sale (POS) systems accounted for the bulk of fraudulent activities in Nigeria during the second quarter of 2024. This was revealed in the latest fraud report by the Financial Institutions Training Centre (FITC), which detailed 11,532 cases over the period.
According to the report, computer/web fraud, mobile fraud, and POS-related fraud remained the most common types of financial crimes, continuing a trend observed throughout 2023 and into the first quarter of 2024.
The total value of fraud reported in the second quarter surged to N56.3 billion, up from N34.8 billion in the first quarter. Out of this, N42.6 billion was lost to fraudsters, while financial institutions managed to recover N13.7 billion.
Mobile fraud, including cases related to mobile apps and internet banking, led the list, accounting for 33.4% of all fraud cases. POS-related fraud followed closely, representing 24.6% of the total, while web-based fraud contributed 16.9%. The report also highlighted the increasing threat of computer-based fraud, signaling the persistent challenge posed by cybercrime in Nigeria’s financial system.
Bank branches bore the brunt of these losses, accounting for 95% of the total fraud value. FITC noted that despite technological advancements, both insider and outsider threats continue to plague the financial sector. Notably, staff involvement in fraud cases increased, with 49 employees dismissed for participating in fraudulent activities during the quarter.
In terms of financial impact, bank branches saw losses amounting to N54 billion, representing 95.63% of the overall fraud amount. Web-based fraud followed, accounting for N1.2 billion (2%), while POS and mobile fraud contributed N651 million and N547 million, respectively, each making up about 1% of the total.
FITC’s report also underscored shifts in fraud tactics. Card-related fraud dropped by 31.8%, but cheque and cash fraud cases saw a significant rise, leading to major financial losses. The increase in cash-related fraud is particularly concerning, as fraudsters continue to exploit traditional financial instruments.
The report emphasized the growing importance of leveraging artificial intelligence (AI) and advanced technologies to combat the rising sophistication of fraud in the financial sector. It stressed that proactive measures, such as enhanced security systems and continuous staff training, are essential to curb the menace.
FITC noted that Nigeria’s financial institutions face escalating challenges, with fraudsters targeting both new and traditional channels. The institute called for stricter regulatory oversight and the adoption of cutting-edge technologies to safeguard the country’s financial landscape from future threats.
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