FOUR BANKS LOST N1.77bn TO FRAUD IN 2021

Four Nigerian deposit money banks lost a total of N1.77bn to fraudulent activities involving the banks’ employees and consumers in 2021.

This was contained in the 2021 financial statements of the banks.

The banks are Access Bank Plc, Guaranty Trust Bank Plc, First Monument City Bank, and Wema Bank.

The Nigeria Inter-Bank Settlement System, a company saddled with the responsibility of providing infrastructure for interbank transactions in the country, said Nigeria’s adoption of several electronic channels continued to rise as N271.95tn worth of transactions were recorded on its platform in 2021 compared to N158.21trn that changed hands on the platform in 2020.

Transactions via mobile channels increased significantly by 164.4 per cent in 2021 to N8.06trn as against N3.05trn recorded in 2020.

In a blog post recently published on its website, the company said that Nigeria has some of the most advanced payment electronic payment capabilities in the world.

The NIBBS however warned that “the increase in transaction processing, speed and available channels comes with an unavoidable side effect– more vectors for fraudulent activities.”

NIBSS had earlier said that fraud-related transactions cost Nigerian banks an average loss of N14bn yearly.

According to their financial statements, WEMA and GTB incurred the biggest losses as a result of fraud within the period under review, as they lost N670.73 and N511.9m respectively.

For Wema Bank, the cost of fraud rose by N27.46m, year on year, as the loss incurred in 2020 was N643.277.

In the case of GTB, the fraud losses were almost tripled in 2021.

At N511.9m, the losses the bank incurred due to fraudulent activities rose by N337.5m from N174.40m recorded in 2020.

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