The Nigeria Electronic Fraud Forum Annual Report, unveiled by the CBN Governor, Mr. Godwin Emefiele, during the NEFF stakeholders’ workshop on cybercrime has revealed that Deposit Money Banks in the country lost a total of N2.19bn to fraudsters in the 2016 fiscal period.
The report stated that 19,531 fraud cases were reported for the DMBs in 2016 as against 10,743 in 2015.
It stated that although there was an 82 per cent increase in reported fraud cases as compared to 2015; the banking sector witnessed marginal reduction in the value of attempted frauds and actual losses.
For instance, the report stated that attempted frauds’ value dropped from N4.37bn in 2015 to N4.36bn in 2016, while actual loss value declined from N2.25bn to N2.19bn.
A breakdown of the actual amount lost showed that across the counter transactions accounted for the highest with a total value of N511.07m.
This was followed by Automated Teller Machine transactions, with N464.5m; Internet banking, N320.66m; Point-of-Sale transactions, N243.32m; and mobile banking transactions, N235.17m.
Losses from e-commerce transactions were put at N132.25m; web transactions, N83.77m; cheques, N4.55m; kiosks, N10.19m; and others, N190.97m.
The report read in part, “Based on trend and human perception, it is believed that fraud rates increase towards the end of the year due to festivities observed during this period and the need for people to get more money.
“But the truth is fraud can occur anytime, hence the need for us to always gear up our preventive and detective strategies.”
The CBN governor stated that while the apex bank and banking operators had made efforts to reduce the incidents of fraud and ensure consumer confidence in the payment system, the Cybercrime Act, if effectively enforced, would serve as a deterrent and constant reminder to those who might wish to engage in illicit activities targeting the financial technology infrastructure.
Did you find this article informative? Kindly like, comment and share!