Lagos, Abuja, Rivers Lead States In ₦18 Billion Bank Fraud Loss

Lagos, Abuja, Rivers Lead States In ₦18 Billion Bank Fraud Loss

The Nigeria Inter-Bank Settlement System (NIBSS) has unveiled its 2023 Annual Fraud Landscape report, shedding light on significant trends in financial fraud across the nation. According to the report, Lagos, Rivers States, and the Federal Capital Territory (FCT) emerged as the top regions for financial fraud incidents last year…..READ ALSO Alarm Bells Ring As NGX Kicks Off 2024 with A Whopping N638 Billion Loss, Raising Concerns Among Investors

NIBSS data, made public on its website, discloses that financial institutions in Nigeria suffered losses amounting to approximately ₦17.67 billion due to fraud in 2023. Lagos, in particular, witnessed the highest fraud count and actual loss, constituting 48% and 49%, respectively.

Despite concerted efforts to combat fraudulent activities, Lagos saw a marginal increase in cases from 45,952 in 2022 to 46,224 in 2023. However, it managed to reduce the value of losses from ₦9.9 billion in the previous year to ₦8.7 billion, marking a 12% decrease.

The report further reveals declines in fraud counts in Abuja and Rivers State, although the actual value of money stolen in Abuja surged by 73.17%, reaching ₦994 million.

While Ogun and Kaduna States remain focal points for financial fraud, they reported a decrease in fraud counts. Notably, Lagos and Kano experienced an increase, with Cross River recording the highest jump in actual loss value—an alarming 2,202% increase to ₦1.04 billion.

The report underscores the rise of Internet banking fraud, which skyrocketed by 325% in 2023, primarily fueled by a ₦2.4 billion internal fraud involving corporate accounts at a major bank. Mobile channels remained the preferred medium for fraudsters, registering a 5% increase from the previous year.

Despite an overall six per cent decrease in total fraud counts to 95,620, actual losses from fraud surged by 23%. The report emphasizes the necessity of sustained vigilance and enhanced security measures by financial institutions.

Furthermore, the United States emerged as the top foreign location where Nigerian banks’ customers fell victim to fraud, followed by the United Kingdom and Ireland. Social engineering was identified as the predominant method employed by fraudsters.

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