By Ishaya Ibrahim
Hackers are on the prowl. They look for vulnerable points to break into a bank’s customers account and empty their life savings.
In October 2018, a Nigerian, Abel Ugbaja, said a total of N462,000 vanished from his bank account even when his Automated Teller Machine (ATM) card was in his pocket.
“My phone was stolen from me on my way to work on the 15th of October, 2018 at FADEYI bus stop, Lagos. Before I was able to block my account, I noticed that there had been unauthorized deduction of about N462,000 on my Guarantee Trust Bank account 0003602884 that same day,” he said.
He explained that the money was transferred to two different bank accounts belonging to Kingdom Chukwuemeka Allwell, a Sterling bank customer and Emenike Michael Ugochukwu, a UBA account.
“I contacted GTB and they said the transaction happened using the last 4 digit of my ATM card that is still with me at the time of the transfer. It is not possible for such transaction to have taken place without someone in the bank given out customers information to fraudsters.
“ Since I already know the account names and banks my cash was moved to, i want them tracked. I also contacted the Nigerian police and I was told to bring N50,000.00 to track the fraudsters which I do not have. Why? Nigeria why?” he lamented.
The fraudsters accounts were later blocked, and the money recovered after the victim amplified his protest to Nigeria’s Twitter community.
When a bank’s fraud is perpetrated by an external hacker like what happened to Ugbaja, the vulnerable point may be that he must have compromised his account information. But when a bank’s employee is the one stealing the money, detecting the fraud becomes more difficult.
The Economic and Financial Crimes Commission (EFCC) had on March 7 arraigned Ecobank Nigeria Plc and its staff, Anieka Udoh on a five count charge of alleged Advance Fee Fraud and other Fraud Related offences involving $60,000 and N9.2 million (N30.8 million cumulative).
While the bank is charged for negligence, the staff, although now dismissed, is accused offraudulently converting the account of Major General Mohammed Umaru’s account for his use.
Udoh was alleged to have while as a staff of Ecobank Plc, fraudulently opened and operated an account number 0015052989 with Ecobank Plc in the name of Major General Mohammed Umaru without the knowledge and authority of the customer.
He was also alleged to have on the 28th of January 2016 at Lagos, fraudulently withdrew and converted the sum of $10,000. 00 from the Major General’s Ecobank Domiciliary account number 43336361424 without his knowledge and authority and thereby committed an offence contrary to Section 7(3) (a) and (b) of the Advance Fee Fraud and other Fraud Related Offences Act.
In March this year, the president of Chartered Institute of Forensic and Investigative Auditors of Nigeria, Dr. Victoria Enape, said that fraud volume in Nigerian banks increased dramatically to about N25 billion in the past five years.
Businesses have collapsed as a result of banking fraud. Many are thrown in the unemployment market. Investors are scared away from Nigeria. Families are dislocated.
Sociologist and internet security consultant, Ebongabasi Ekpe-Juda, said only two parties have information about a customer – the customer himself and his bank, so when a bank fraud occurs, it could be as a result of the negligence of the customer or the bank’s employee doing the stealing.
“A lot of the fraud that happens is because there is somebody in the bank who supplies customers information to somebody.
“My in-law came in from the US. Until he came, he never received any letter from any person baiting him with fraudulent messages. But immediately he opened that account, letters started flooding his mail. It was easy for me to decipher that somebody in the bank has given out his information,” he said.
He said he has seen cases where transaction happens in a customers account who is supposed to be receiving alerts and they don’t get the alert until the account runs down. He said it was logical for the bank to be held responsible in that case. But the bank will put the blame on the customer.
“The banks want to protect their integrity. They want you to believe that the thing is not from them. Whereas it is from them.
“They have brought all sorts of people into the bank, most of them they did not know who they are, some of them are referred from politicians and they are employed. They did not do a character check. And they come into the bank with ulterior motives. And they give them heavy targets they can’t meet. So, for fear of tomorrow, they try to make money any how because they are scared that they can lose the job any time,” he said.
He said the way out is for the banks to be held responsiblefor every fraud.
“If the banks are held responsible, they will sit up. They will improve on their Cyber security system. But because the banks know that they are protected, they don’t care,” he said.