Robbery, fraud lead to loss of N12.06bn in Nigerian banks within six months

Financial crimes in Nigeria is seemingly on the rise despite numerous efforts by several anti-graft agencies to curtail the widespread of fraud and conversion of fund in the financial industry.

The latest setback to the progress that has been made so far is the report of the loss of 12.06bn to robbery and fraudulent activities in Nigerian banks between January to June 2018.

According to CBN, the reported cases of fraud and forgery has increased from 16,762 in the same period of 2017 to about 20,768 in 2018. The value of the financial implication of these incidents has seen more than a tripled growth from last year. Previous reports show that N0.78bn and $0.03m was lost in an attack that involved a total amount of N5.5bn in 2017, while such attacks have recorded more success rate in 2018 with an attempt at N19.77bn yielding a loss of 12.06bn.

Some of these fraud were facilitated by the staff of some the banks involved.

The most significant mode of attack in these cases is through electronic channels like ATM, online fund transfer, cash pilfering, customers’ deposit conversion, and the unfortunate incidents of armed robbery.

The security situation in Nigeria has created a volatile environment for financial institutions who have become prone to armed robbery attacks. In 2018 alone there has been a record of several bank robberies that have led to the loss of many lives and large amounts of money.

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Although many banks are constantly upgrading their electronic banking channels to meet the demands of these security challenges, the fact still remains that they need to do more in guiding their customers on how to spot and report fraudulent baits instead of falling victims. And it is also expected that the Nigerian government do more in improving the security challenges that have created an avenue for robbery gangs to carry out these operations successfully.

The CBN noted that its priority is to ensure that the country’s financial institutions are strengthened and secure in order to mitigate these attacks. It further stated that one of the ways it is tackling the problem is through its joint risk assessment with NDIC (Nigeria Depositor Insurance Corporation). It is expected that a renewed determination towards curbing this menace will lead to a solution that will take care of these cases once and for all.