•NIBSS calls for more vigilance as criminals wipe away N52.3b
Banks and other financial institutions lost about N52.3 billion to fraudulent activities in the five years ending in 2024, the Nigeria Inter-Bank Settlement System (NIBSS) revealed yesterday in its Fraud Report.
NIBSS explained that the amount lost to fraud increased along with the growth of digital transactions.
According to the report, yearly fraud counts decreased by 31 per cent from 101,624 in 2020 to 70,111 in 2024, while the value lost has grown by 350 per cent from N11.61 billion to N52.26 billion in the period.
NIBSS explained that the ratio of total reported fraud value to the total value of transactions recorded over the last five years showed a decrease from 0.0053 per cent in 2020 to 0.0022 per cent in 2023 and an increase from 0.0022 per cent in 2023 to 0.0040 per cent in 2024.
The report revealed that total attempted and actual losses between 2023 and 2024 increased by 338 per cent and 195 per cent respectively. This significant increase is attributed to fraud incidents at some institutions, stemming from system vulnerabilities.
According to NIBSS, when compared to the previous quarter, fraud activity increased in 2024, with attempted amounts and actual losses rising significantly in Q2 and Q3, before declining in Q4.
NIBSS in the 16-page document emphasised that this decline does not diminish the severity of the issue and urged the financial industry to remain vigilant, enhance security measures, and collaboratively address the persistent challenges posed by fraud.
According to NIBSS, which provides the infrastructure for automated processing, settlement of payments and fund transfer instructions in Nigeria, noted that individuals aged 40 and above continued to be the primary targets for fraudsters in 2023, mirroring the trend observed in the previous year.
Further, NIBSS revealed that some 400 million were stolen by fraudsters through financial accounts opened with stolen identities in 2024. According to it, the identities of senior citizens were stolen, and accounts were opened in their names, saying that the estimated N400 million proceeds from fraud were transferred into these accounts and subsequently dissipated.
Going forward, the report stressed the need for ongoing efforts to educate and protect individuals, who are 40 years and above from fraudulent activities.
The report noted that certain regulations need thorough examination, modification, and reinforcement to reduce the potential for fraud and increase the chances of successful recovery.
NIBSS recommended that there was a need to ensure all accounts undergo strict verification, particularly for entities requesting rapid transactions or high-value operations.
According to it, all dormant or inactive accounts should have a zero-transaction limit and transfer limits on savings accounts opened without customer-induced transactions for more than one month be set to zero.
It added that watchlist BVN of customers, who have committed breaches highlighted in the CBN BVN guidelines as when due; implement an enterprise fraud management system to monitor transactions and flag/stop suspicious activities immediately for review.
