- Financial institutions lost N52.26 billion to fraud in 2024, according to the Nigeria Inter-Bank Settlement System
- It said attempted fraud increased by 338 per cent between 2023 and 2024 due to system vulnerabilities
- Individuals above 40 years were primary targets of fraudsters
The Nigeria Inter-Bank Settlement System (NIBSS) says financial institutions in Nigeria lost N52.26 billion to fraud in 2024.
According to the latest Fraud Report of the NIBSS, the amount is N34.59 billion more than the N17.67 billion recorded in 2023.
The NIBSS report documents fraud activities, whether attempted or successful, and related metrics identified by local financial institutions or agencies.
The report noted that the amount lost to fraud has increased by 196 per cent over the past five years, in parallel with the growth of financial transactions in the digital payments sector.
It stated that the annual fraud count reported decreased by 31 per cent from 101,624 in 2020 to 70,111 in 2024, however, the amount lost to fraud grew by 350 per cent from N11.61 billion in 2020 to N52.26 billion in 2024.
Analysis of financial fraud activities in 2024
The report stated that the ratio of total reported fraud value to the total value of transactions recorded in the last five years decreased from 0.0053 per cent in 2020 to 0.0022 per cent in 2023, and increased to 0.0040 per cent in 2024.
It also highlighted that attempted fraud increased by 338 per cent between 2023 and 2024 due to system vulnerabilities at certain institutions.
Fraud activity increased in 2024 compared to the previous quarter, as attempted amounts and actual losses rose significantly in the second and third quarters (Q2 and Q3) before declining in the fourth quarter (Q4).
A total of 80,658 unique customers fell victim to fraud in 2023, a four per cent drop from the 84,130 customers recorded in 2022.
NIBSS however stressed that the decline does not underestimate the severity of fraud within financial institutions.
It urged the financial industry to remain vigilant, enhance security measures, and collaboratively address the persistent challenges posed by fraud.
Individuals above 40 years were primary targets
The NIBSS report further showed that individuals aged 40 and above continued to be the primary targets for fraudsters in 2024, a trend that was observed in the previous year.
This trend emphasises the need for increased efforts to educate and protect individuals in this demographic from fraudulent activities.
The report added that certain regulations need thorough examination, modification, and reinforcement to reduce the potential for fraud and increase the chances of successful recovery.
Nigerian banks lost $42.6 billion to fraud in Q2 2024, FITC reports
Meanwhile, TheRadar earlier reported that the surge in fraudulent activities across banking platforms in Nigeria led to a loss of N42.6 billion by Nigerian banks in three months between April and June 2024.
This was revealed by the Financial Institutions Training Centre (FITC) in its Q2 2024 Fraud and Forgeries report.
