In a concerning trend, six major Nigerian commercial banks ramped up their technology investments by a staggering 176.09% in the first half of 2024, spending ₦196.89 billion on systems and cybersecurity enhancements. However, despite these efforts, the financial sector has seen a shocking rise in fraud cases within banking halls, with incidents surging by 589.01% during the same period, according to a recent report by the Financial Institutions Training Centre (FITC).
The report revealed that banks suffered unprecedented losses due to fraud, with a total of ₦43.12 billion lost in H1 2024, a significant leap from the ₦6.26 billion recorded during the same period in 2023. These figures reflect an alarming 8,993.04% increase in fraud-related losses, from ₦468.49 million in the first quarter of 2024 to ₦42.6 billion by the second quarter.
FITC’s data suggests that the rise in fraudulent activities, particularly within banking halls, remains a critical area of concern despite the aggressive technological upgrades made by the banks. While the increased spending was primarily aimed at fortifying cybersecurity measures and upgrading systems, internal fraud and compromised operational protocols have contributed significantly to the losses.
Industry experts have called for enhanced training for bank personnel and stronger internal monitoring mechanisms to address vulnerabilities within the system. The FITC report underscores the urgent need for banks to not only invest in external cybersecurity measures but also to improve internal control structures to better detect and prevent fraudulent activities at the source.
As the Nigerian banking sector continues to modernize its operations, it is evident that more needs to be done to safeguard against the rising tide of fraud, which threatens not just the integrity of financial institutions but also customer trust.
