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Banks sack 49 as fraud-related losses spike by 9,004% in Q2

With fraud cases within the banking system rising by 9,004 per cent, which led to a loss of about N42.6 billion in the second quarter of 2024, 49 appointments have been terminated within the industry.

According to the Financial Institutions Training Centre (FITC) Q2 2024 Fraud and Forgeries report released at the weekend, losses from fraud rose from N468.4 million (Q1) to N42.6 billion, a staggering percentage increase of 9004.82 per cent.

FITC explained that while 11,472 cases were recorded in Q1 2024, the figure rose to 11.532 three months after (0.52 per cent). The total amount involved in the fraud rose to N56.3 billion from N2.988 billion (1,784.6 per cent). It put the total amount lost from April to June at N42.6 billion from N468.4 million, which showed a percentage change of 9,004.82 per cent within the period under review.

In the frauds, FITC revealed that outsider involvement rose from 10,397 in Q1 to 10,938 in Q2 (5.20 per cent), while insider (staff) involvement also went up from 47 to 58 (23.4 per cent). This led to the termination of people found culpable, where 49 persons as against 35 in Q1 lost their appointments.

Further analysis of the report showed that “miscellaneous and other fraud” types constituted the largest loss, representing 96.46 per cent of the total amount lost,] with a value of N41.14 billion.

This was followed by losses from fraudulent withdrawals and computer/web fraud, amounting to approximately N781.2 million and N400.7 million, respectively.

FITC explained that Q2 2024, fraudulent activities were carried out through various channels, including Automated Teller machines (ATMs), online platforms like web and mobile banking, bank branches and Point of Sale (POS) terminals.

Among instruments used, card fraud recorded a significant decrease, declining by 47.66 per cent from 21,469 in Q1 to 11,237 in Q2.

In contrast, fraudulent activity involving cheques and cash increased by 36.67 per cent and 9.09 per cent, respectively, with cheques surging from 30 cases in Q1 to 41 cases in Q2, while the use of cash rose from 209 in Q1 2024 to 228 in Q2.

A further analysis of the data showed a significant rise in the amount lost across all channels, except for mobile fraud, which recorded a decline.

Losses through bank branch-related channels rose by 31,497 per cent, to a value of N42.2 billion in Q2 from N133.9 million in Q1 2024. Computer/web frauds also saw a monumental increase of 1,560 per cent, with losses growing from N24 million to N400.8 million.

However, there was no indication of the amount lost to ATM-related fraud. As initially mentioned, mobile fraud recorded a decline in the amount lost from the previous quarter, decreasing by 59 per cent from N216.4 million in Q1 to N88.7 million in Q2 2024.

With the sudden surge in losses to fraud, the FITC advised the banks to enhance their monitoring and auditing procedures. It said deposit money institutions could utilise Artificial Intelligence (AI) tools that flag unusual entries or patterns to implement continuous and automated monitoring systems that could detect anomalies or discrepancies in settlement files.

It added that regular unannounced internal audits focusing specifically on settlement processes could be conducted to identify and address any irregularities promptly.

“Access controls should also be strengthened by limiting access to settlement files to only a small, vetted group of authorised personnel given the appropriate clearance and regularly trained on the latest security protocols.

“The implementation of Multi-Factor Authentication (MFA) and Role-Based Access Controls (RBAC) can aid the reduction of the risk of unauthorised changes to settlement files,” FITC stated.

The firm disclosed that in the period under review, it received 80 returns on fraud and forgery cases from 28 Deposit Money Banks (DMBs).

According to FITC, a closer look revealed that 26 reports were submitted in April, while 27 reports were received in May and June.

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Navy arrests suspected oil thieves in Akwa Ibom

The Nigerian Navy has arrested three suspected oil thieves in Akwa Ibom

The Nigerian Navy, Forward Operating Base (FOB), Ibaka, Akwa Ibom State has arrested three suspected oil thieves with 2,000 litres of Premium Motor Spirit (PMS), and 1000 cartoons of beer with the intention of smuggling to the Republic of Cameroon.

The Commanding Officer of the Base, Capt. Uche Aneke disclosed this while handing over the suspects, seized items and other goods to the Nigeria Security and Civil Defense Corps (NSCDC), Akwa Ibom Command on Friday.

Aneke said the suspected oil thieves were arrested on Wednesday, at about 7 pm, while on routine night patrol at Mbo River during stop-and-search.

“Navy intercepted a wooden laden with about 1,000 cartons of different brands of beer and other goods, upon thorough search own gunboat discovered 2,000 litres drums of PMS carefully concealed under the cartons with the intention of smuggling into the Republic of Cameroon,” he said.

He warned individuals or groups involved in smuggling or any form of criminal activity within Nigeria’s waters, urging them to desist immediately.

Aneke reaffirmed the Navy’s commitment to combating maritime crimes in the state under the leadership of Chief of Naval Staff, Vice Admiral Emmanuel Ogalla.

He also stated that criminal elements in the FOB Ibaka area of operations under the Eastern Naval Command Area of Responsibility would continue to be detected using advanced surveillance equipment and intelligence.

“Such criminals will be apprehended and duly prosecuted. Nigeria’s waters and the Nigerian coastal areas are not for illegal activities,” Aneke said.

Receiving the items, suspects and other goods, Mr Willie Sunday, Assistant Superintendent Corps, said the corps would further investigate and possibly prosecute the suspects.

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Labour Party Dismisses Allegations of Partnership with Tinubu for 2027 Elections

The Labour Party (LP) has refuted claims circulating on social media that its leadership is collaborating with President Bola Tinubu ahead of the 2027 general elections.

The allegations stem from a video where activist Deji Adeyanju alleged that the LP had entered into a partnership with Tinubu in preparation for the next presidential poll.

In a statement released on Friday, the National Publicity Secretary of the Labour Party, Mr. Obiora Ifoh, categorically denied the claims, emphasizing that the party remains committed to its role as a leading opposition force in Nigeria.

“The Labour Party has repeatedly and firmly denied any understanding or collaboration with the ruling All Progressives Congress (APC) regarding the 2027 elections,” Ifoh said.

He highlighted the party’s consistent criticism of the current administration under the leadership of its National Chairman, Barrister Julius Abure. “Our chairman has been at the forefront of opposing the government, critiquing its policies, and offering constructive solutions,” Ifoh stated.

The Labour Party, he noted, has undertaken several initiatives to strengthen its position as a credible opposition, including:Establishing an Electoral Reform Committee to advocate for credible, fair, and transparent electoral processes.

Creating a Political Education Committee to reorient citizens towards a more positive and informed approach to politics.

Launching an e-membership registration platform to deepen participatory democracy, which has already attracted thousands of subscribers.

“These efforts are aimed at repositioning the Labour Party as a formidable political force,” Ifoh said, describing the allegations as baseless and damaging.

He challenged Adeyanju and others making similar claims to provide concrete evidence of any alleged collaboration between the Labour Party and Tinubu or the APC.

“It is both irresponsible and absurd to attempt to tarnish the image of a party dedicated to reforming Nigeria’s political landscape,” Ifoh concluded.

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71% of households affected by food price hike – NBS

The National Bureau of Statistics (NBS) says the most prevalent shock affecting households across Nigeria is the price increases on major food items.

The NBS said 71 per cent of households reported this shock.

The NBS disclosed this in its General Household Survey-Panel (GHS-Panel) Wave 5 2023/2024 unveiled in Abuja.

The report said urban households experienced the shock of food price increases at 75.5 per cent more than rural households at 68.9 per cent.

It said the issue was most pronounced in the South-East and South-South zones at 83.6 per cent and 79.3 per cent, respectively.

“In general, the data indicate that price hikes on essential goods are a major concern for households nationwide.”

The report revealed the other top most common economic shocks were increase in price of oil and fuel at 52 per cent, and increase in prices of other fuels at 32.2 per cent.

“This was followed by increase in price of farming/business inputs at 28.8 per cent, floods at 8.8 per cent, droughts at 5.8 per cent, and pest and plant disease at 5.7 per cent.

“Shortage/scarcity of petrol at 5.3 per cent, irregular rains at 4.7 per cent and very high temperatures (>40°C) at 4.7 per cent.”

It said these households dealt with shocks in a variety of ways, but the main coping mechanism was reducing food consumption at 48. 8 per cent.

“To cushion shock effects, some households also received assistance from friends and family at 36.1 per cent and reduced purchased quantities compared to the last at 32.6 per cent.

“In contrast, a significant proportion of households did nothing to deal with the shocks at 28.3 per cent.”

The report revealed that only 4.0 per cent of households nationwide received safety-net assistance, a decline compared to GHS-Panel Wave 4 at 10. 4 per cent.

The report showed that households in the urban areas had a higher coverage of receiving assistance at 5.2 per cent compared to rural areas which has a coverage of 3.5 per cent.

“Also households in the urban areas had a stronger reliance on cash assistance at 60.5 per cent compared to the rural areas at 49.6 per cent.”

The report said at the zonal level, the South-South and North-West zones recorded the highest share of households with safety nets at 6.7 per cent and 5.6 per cent, respectively.

The News Agency of Nigeria (NAN) reports that the GHS-Panel is Nigeria’s nationally representative longitudinal household survey which commenced in 2010 and the NBS has implemented five waves of the survey.

The panel nature of the data enables tracking household-level changes in critical areas of welfare, work, and socio-economic outcomes over time, yielding insights for policy. 

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Supreme Court nullifies National Lottery Act

The Supreme Court has nullified the National Lottery Act 2005 enacted by the National Assembly, declaring it unconstitutional.

The apex court in a unanimous decision delivered by a seven-member panel on Friday held that the National Assembly lacks the authority to legislate on matters related to lotteries and games of chance, as such powers reside exclusively with state Houses of Assembly.

Justice Mohammed Idris, who delivered the lead judgement, ordered that the National Lottery Act 2005 should no longer be enforced in any state except the Federal Capital Territory (FCT), where the National Assembly is constitutionally empowered to make laws.

This judgement arises from a suit filed in 2008 by Lagos State and several other states, challenging the constitutionality of the Act.

The court’s decision reinforces the federal principle of states’ autonomy over certain legislative matters.

Details later.

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How DSS arrested fake NGO leader

Officials of the Department of State Services (DSS) Thursday in Abuja arrested one Kennedy Tabukoi for allegedly leading an unregistered Non-Governmental Organization (NGO), the Niger Delta Development Initiative (NDDI), to blackmail certain high-profile officials of government.

According to security sources, when such government officials fail to meet Tabukoi’s demands, he resorts to organising other unsuspecting groups to lead protest marches against government officials.

One such protest march was held Thursday morning at the National Assembly gate, where Tabukoi led several groups to protest against what he claimed were moves by the federal lawmakers to stall a probe of the petroleum sector.

The sources confirmed that, unknown to Tabukoi, security operatives had been on his trail after certain officials of government reported the several attempts he made to allegedly blackmail them into parting with huge sums of money and contracts, “or risk being embarrassed.”

A security source said, “That man Tabukoi had been boasting to friends and members of his syndicate that, as a Niger Deltan activist, he would use his NGO to deal with any government official who didn’t do his bidding.

“Unknown to him, it was the same people he had been intimidating with claims of how much he would make from top government officials in Abuja that tipped off the DSS that he had no NGO and that he was merely using impersonation to blackmail such government officials.”

“When we invited Tabukoi, he didn’t waste time in corroborating the claims of his so-called friends. He said he was aware that several Niger Deltans made money from activism, reason he was in the process of raising money to register his own NGO.”

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IPOB disowns Simon Ekpa

The Indigenous People of Biafra (IPOB) has disowned Simon Ekpa

The Indigenous People of Biafra (IPOB) on Friday disowned Simon Ekpa, the self-acclaimed Prime Minister of Biafra Government in Exile (BRGIE), who was arrested in Finland alongside four others over terror-related activities.

According to the Finnish Police, Ekpa was arrested “on suspicion of public incitement to commit a crime with terrorist intent,” while the four others were arrested “for financing a terrorist crime”.

In a statement released on Friday, IPOB’s spokesman, Emma Powerful, accused Ekpa of recruiting violent criminals to destabilize the South East Region.

IPOB also disowned Ekpa, stating that he has never been a registered member of the group.

“Contrary to the deliberate and malicious misinformation from the Neo colonialist news agency, the BBC, that Simon Ekpa is an IPOB leader. Simon Ekpa has never and is not an IPOB member, let alone being a leader in IPOB,” Powerful said.

“IPOB has some family units in Finland, and Simon Ekpa is not a registered member of any IPOB unit in Finland or any other IPOB unit globally. Mazi Nnamdi Kanu established IPOB as a peaceful movement to seek Biafra Independence via a supervised UN referendum.

“IPOB is a peaceful global movement that has never taken to violence or arms struggle in two decades of our self-determination struggle. Even though the various murderous government regimes in Nigeria have provoked us, we have remained resolutely peaceful.

“It was unfortunate that some innocent Biafrans being passionate for the restoration of the stolen sovereignty of the Biafran Nation, thought that Simon Ekpa was genuinely sympathetic to the Biafra course. Sadly, they had to learn the hard way that he was a destructive agent paid to infiltrate and destroy the IPOB peaceful movement for Biafra self-determination.

“He recruited violent criminals to destabilize the South East Region in 2021. He is a self-acclaimed prime minister of a small, criminally minded group called the Biafra Government in Exile (BGIE). The infamous BGIE, led by Simon Ekpa, created a violent group that called itself the Biafra Liberation Army.”

Powerful accused Ekpa’s BRGIE group and the Nigerian Army of being responsible “for many kidnappings, rapes, forceful disappearances, killings, and burning of homes in the South Eastern region.”

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