The Nigerian Inter-Bank Settlement System (NIBSS) has reported that the amount lost to fraudsters in the banking sector decreased to 3.007 billion in Q1 2024 when compared to 5.06bn in Q1 2023, representing 57% drop year-on-year.
The industry ombudsman, in its just published ‘Q1 2024 Industry Fraud Report’ disclosed that in the quarter under review, the fraud count also decreased to 20,638 when compared to 27,555 in the corresponding quarter of last year.
According to the report, February recorded the highest frauds both in terms of volume and value during the review period.
Specifically, the report showed that volume of fraud count in the month stood at 7,243 in 2024 while the value lost to fraudsters totalled N1.047billion while the fraud volume ratio reduced to 0.0001% in Q1 2024 compared to Q4 2023.
In terms of fraud location, Lagos accounted for 57% of Nigeria’s fraud count and 55% of the total actual loss value in the first quarter of this year.
The NIBSS further disclosed that in comparison to 2023, the preferred method of utilizing fraud proceeds, through withdrawals increased in fraud count by 10% and decreased in value by 59% just as the Mobile channel frauds increased by 19% in usage in the quarter compared to the reported incidents in Q4 2023, making it the most common Channel for fraud.
In addition, the report reflected that Social Engineering was used as the dominant technique for fraud, resulting in a 10% increase in count and a 59% decrease in actual fraud loss compared to the incidents in Q4 2023.
On quarter-on-quarter analysis, the NIBSS reported that there was an 18% increase in the count of reported fraud incidents between Q4 2023 and the first quarter this year from 17,515 to 20,638.
It, however, clarified that despite the increase in fraud count, a 45% decrease was recorded in the Attempted Fraud Amount and Actual Fraud Loss between the last quarter of last year and Q1 2024 respectively.
The report further indicated that when compared to the preceding quarter, Q1 2024 showed a 50% decrease in the percentage ratio of fraud loss to the total value of transactions carried out within the same quarter.
