Ten banks accounted for 87% of banking sector fraud — NDIC

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Ten Deposit Money Banks accounted for about 87.63 per cent of fraud and forgeries that occurred in the banking sector in the 2017 fiscal period.

This is contained in the 2017 annual report of the banking sector prepared by the Nigeria Deposit Insurance Corporation.

The report which was made available to our correspondent on Thursday, however did not provide the identities of the DMBs.

The report said out of the total amount of N12.01bn fraud which the banking sector recorded in 2017, the ten banks accounted for N10.53bn.

It said although the percentage share of the amount involved in fraud of these ten DMBs declined, the amount involved in these cases was an increase of 38.05 per cent from the N7.63bn reported in 2016 to N10.53bn in 2017.

The 2017 figure of N10.53bn, according to the report, was however lowered by 32.26 per cent when compared with the 2015 reported value of N16.26bn.

The report read in part, “In 2017, ten DMBs accounted for 87.63 per cent of fraud and forgeries’ incidences in terms of amount involved, while the balance of 12.37 per cent represented the reported fraud cases in the remaining DMBs.

“The number of fraud cases and amount involved remained historically high while efforts were being made to stem the tide through adequate supervisory foresight and interventions by the authorities, as well as initiative by the respective bank management to broaden the depth of internal control processes.”

The report explained that fraud incidences perpetrated through Automated Teller Machine platform and other card related channels had the highest frequency and actual loss sustained by banks in 2017.

It added,”The frequency and actual loss recorded in ATM/card related channels was 16,397 and N0.79bn.

“That was higher than N0.5bn and N0.47bn in 2015 and 2016, with respective frequencies of 8,039 and 11,244 cases.”

The report said ATM channel was closely followed by web-based fraud and fraudulent transfers/withdrawal of deposits with 7,869 and 963 attempts, respectively.

The actual loss recorded through these channels, according to the report, stood at N0.71bn and N0.32bn in 2017.

This is about 30 per cent and 13 per cent of the total losses recorded during the period.


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