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Over the past two years, Nigerian banks have terminated the employment of 110 individuals, comprising both top executives and junior staff members, due to fraud-related cases.
These details were obtained from the ‘Reports of Fraud and Forgeries in Nigerian Banks’ released by the Financial Institutions Training Centre, covering the period from the second quarter of 2021 to Q2 2023.
FITC’s institutional members include entities such as the Central Bank of Nigeria, the Nigeria Deposit Insurance Corporation, and all licensed banks in Nigeria, forming the Nigerian Banker’s Committee.
A breakdown of the data reveals that while only four bank officials were dismissed in Q2 2021, this figure surged by 175% to 11 in Q2 2023.
The highest number of dismissals among top bank executives and junior staff members occurred in Q3 2022 when 20 officials were let go.
Between Q2 2021 and Q2 2022, a total of 52 bank staff members faced dismissal due to fraud-related issues. However, from Q3 2022 to Q2 2023, this number increased to 58.
Additionally, during the review period, these dismissed staff members were linked to a total of 967 fraud cases. The peak was recorded in Q4 2021, with 410 cases involving bank staff, while the lowest was noted in Q3 2021, with 32 cases.
The analysis further reveals that between Q2 2021 and Q2 2022, bank staff were implicated in 657 cases, while from Q3 2022 to Q2 2023, they were involved in 310 cases.
A total of approximately N18.01 billion was lost due to fraud committed by both bank staff and outsiders within the reviewed period out of a total of N81.69 billion connected to fraud cases.
The highest loss was reported in Q2 2023, totaling N5.79 billion, while the lowest loss occurred in Q1 2023, amounting to N472.28 million.
In terms of the total amount involved in fraud cases, the highest was N34.78 billion in Q3 2021, with the lowest being N1.18 billion in Q2 2022.
Mobile fraud, computer/web fraud, and POS-related fraud remained the most prevalent types of fraud throughout the period, with this trend persisting into Q2 2023.
The report underlines the importance of Nigerian banks strengthening their security protocols, utilizing advanced fraud detection systems, and implementing measures such as multi-factor authentication, strong encryption techniques, and regular security updates to prevent unauthorized access to customer accounts and sensitive information.
Experts in the field, such as Dr. Muda Yusuf, CEO of the Centre for the Promotion of Private Enterprise, have called on the Central Bank of Nigeria to introduce sanctions and eliminate policies that encourage corruption. It is recognized that while cybersecurity measures are crucial, addressing internal processes and staff welfare is equally vital in curbing fraud within the banking industry.
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