Connect with us

Business

NDIC decries incidence of fraud in banking sector

Published

on

The Nigeria Deposit Insurance Corporation (NDIC) has expressed sadness in the spate of forgeries and other related crime in the nation’s banking sub-system.

Raising this concern on Friday was the Managing Director, NDIC, Umaru Ibrahim. He spoke at the 2015 workshop for Business Editors and Finance Correspondents Association of Nigeria (FICAN) in Ilorin, Kwara State.

According to him, the banking sector recorded a total of 10,612 fraudulent cases in 2014 as against 3,786 cases in 2013.

The figure, he said, showed an increase of 183 percent.

The amount involved in 2013 was N21.80 billion as against N25.61 billion in 2014 which was a 17.5% increase with expected/actual loss increase from N5.76 billion in 2013 to N6.19 billion in 2014.

He disclosed that the types and nature of frauds and forgeries were largely web-based (online banking)/ATM card related, fraudulent transfer/withdrawal of deposit frauds and suppression of customer deposits amongst others.

“It was also discovered that temporary staff, clerks and tellers accounted for 64% of the frauds and forgeries in 2014, which require urgent attention to improve the electronic payments controls, IT security, human capital and integrity profiling as well as motivation of staff,” he said.

Join the conversation

Opinions

Support Ripples Nigeria, hold up solutions journalism

Balanced, fearless journalism driven by data comes at huge financial costs.

As a media platform, we hold leadership accountable and will not trade the right to press freedom and free speech for a piece of cake.

If you like what we do, and are ready to uphold solutions journalism, kindly donate to the Ripples Nigeria cause.

Your support would help to ensure that citizens and institutions continue to have free access to credible and reliable information for societal development.

Donate Now