At least N5bn was lost to fraudsters by banks in Nigeria in three quarters of 2020, this is according to a released report by the Nigeria Inter-Bank Settlement System (NIBSS)
The NIBSS Insight report on ‘Fraud in the nation’s Financial Services sector’. noted that over N5bn was lost to fraudsters between January and September 2020.
This report is coming on the heels of a ban on Cryptocurrency by the Central Bank of Nigeria (CBN) and the Security and Exchange Commission (SEC) owing to risk pose by the digital currency in the Nigerian financial space.
The NIBSS report read in part, “On a global scale, fraudulent activities have resulted in losses amounting to about $ 42bn. Approximately 39 per cent are perpetrated by external parties while 37 per cent are perpetrated by internal parties.
“Driving deeper into Nigerian industry data, the actual figures reported by the industry are quite striking.
“This year, about 91 per cent of all fraud attempts as of September have resulted in a total loss, and more than N 5bn was lost as a result of fraud within the period.
“This represents financial institutions with an opportunity to protect their investments as well as attract customers by offering increased artificial protection and the ability to recover lost funds more easily.”
It added that the figures from NIBSS showed that 56 per cent of all reported fraud attempts were carried out using social engineering tools.