Bank customers lose N472m to fraudsters in 3 months
Bank customers lose N472m to fraudsters in 3 months
According to the Q1 report published on the website of FITC, bank customers in Nigeria incurred a loss of N472 million due to fraudulent activities during the first quarter of 2023. The report further stated that a total of 12,553 cases of fraud were documented during this period.
FITC, whose institutional members include the Central Bank of Nigeria, the Nigeria Deposit Insurance Corporation, and all licensed banks in Nigeria, released these findings.
In contrast, the data indicated a reduction in losses compared to the amount lost to fraudulent banking activities in Q4, 2022.
As per the findings from FITC, a sum of N3.18bn was lost to fraudsters across banking platforms during Q4 2022. This indicates a decline in losses by 85.13 percent during Q1 2023.
The data from FITC further unveiled a significant 79.44 percent reduction in the overall sum associated with fraudulent cases during Q1 2023, in comparison to the preceding quarter. The total amount dropped from N12.58bn to N2.59bn.
The number of reported fraud cases in Q1, 2023 also experienced a decline of 14.07 percent.
According to the report, a total of 12,553 cases were reported in the first quarter of this year, compared to the 14,609 cases recorded in the previous quarter.
The report also highlighted that fraud predominantly occurred through mobile, computer/web, and Point of Sale (PoS) channels, which aligned with the trend observed in the preceding quarter.
The report stated, "In Q1 2023, an analysis of the magnitude-based ranking of fraud categories reveals that mobile fraud holds the highest position, accounting for N1.1bn (42.72 percent), followed by computer/web fraud category at N646m (24.99 percent). PoS fraud follows at N450m (17.41 percent), and fraudulent withdrawals at N139m (5.36 percent)."
Within the total losses incurred during Q1, 2023, the data further unveiled the distribution of specific fraud categories. Mobile fraud accounted for 34.07 percent, equivalent to N161m, followed by computer/web fraud at 27.69 percent, amounting to N130m. Fraudulent withdrawals represented 24.72 percent, totaling N116m.
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