Bank staff steal N3.6b partly in collusion with outsiders
By Jeph Ajobaju, Chief Copy Editor
Bank employees, at times in collusion with outsiders, committed N3.62 billion fraud through Automated Teller Machines (ATMs), Point of Sales (PoS) machines, mobile and other electronic channels, and cash theft in the third quarter of 2022 (Q3 2022).
The Financial Institutions Training Centre (FITC) disclosed in its “Report on Frauds and Forgeries in Nigerian Banks’ Q3, 2022” that bank staff carried out all cash theft cases reported in the quarter.
The report said 19,314 cases were reported in Q3 2022 compared with 20,195 in Q3 2021, a decrease of 4.36 per cent.
The total amount involved in Q3 2022 reduced from N34.8 billion to N9.62 billion, or by 72.34 per cent, but the total amount lost was N853,167,293.61 in Q3 2021 against N3.62 billion in Q3 2022, an increase of 324.50 per cent.
According to the FITC, outsider involvement in fraud increased from 14,243 in Q3,2021 to 16,125 in Q3 2022, a rise of 324.50 per cent.
Insider (staff) involvement rose from 32 cases in Q3, 2021 to 112 in Q3, 2022 or by 250 per cent.
Some 14 bank appointments were terminated in Q3 2021 and 20 in Q3 2022.
A total 22 tellering fraud was reported, which involved four bank staff and five outside persons with 10 people colluding, involving N121,763,258.91 and actual loss of N83.5 million.
The FITC said 36 forged cheques and signatures were reported with the involvement of four bank staff and 12 outside persons, in which N521, 349,800.96 was involved but N305.4 million was lost.
According to the report, computer/web fraud totalled 8,830 cases with six bank staff involved and 8,911 outside persons. The amount involved was N2, 621,953,247.60 with N305, 495,175.25 lost.
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Mobile fraud cases
A total 6,631 mobile fraud cases were reported, where 33 bank staff were involved and 5194 persons from outside colluded – involving N2, 669,417,856.44 and N1, 222, 095,081.99 lost, according to The Guardian.
There were reported 16 cash theft cases with the involvement of 16 bank workers, where N569.6 million was involved and N452.2 million stolen.
The FITC explained that in Q3 2022, there were no clearing fraud, printing of bank documents illegally, falsification of accounts, foreign exchange fraud, and cross firing of cheques and kite flying.
The FITC also said
- Despite the overall decline in fraud incidences, the amount involved and the amount lost, it is necessary for banks to improve internal control measures to proactively prevent fraud activities.
- It is commendable for the banking institutions that fraud incidences, amount involved, and amount lost have decreased.
- There is a need to review fraud control measures in place in physical bank branches as there is a sustained increase in the amount involved in fraud activities and ultimately increase in the amount lost in bank branches.
- To reduce incidences of fraud in bank branches, all fraud control touchpoints must be reviewed critically for loopholes, and when these loopholes are identified, efforts must be made to close the gaps to avoid future occurrences.
- “As always, banks should continue the ongoing sensitisation of their customers on the need to protect their personal details across various channels and banking platforms.”
