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10 banks account for 87% of banking fraud in Nigeria- NDIC



Umaru Ibrahim NDIC boss

A report by the Nigeria Deposit Insurance Corporation, NDIC has indicated that 10 Deposit Money Banks in the country accounted for about 87.63 per cent of fraud and forgeries that occurred in the banking sector in the 2017 fiscal year.

NDIC stated this in 2017 banking sector report made available in Thursday.

The report however failed to mention the names of the affected banks.

According to the report, out of the total amount of N12.01bn fraud which the banking sector recorded in 2017, the ten banks accounted for N10.53bn, adding that 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 report further showed that 2017 figure of N10.53bn was lower by 32.26 per cent when compared with the 2015 reported value of N16.26bn.

Read also: Heritage Bank to forfeit N1.2bn, $327,000 in ‘ghost’ account to Nigerian govt

The report reads 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 further 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.

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

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