The Central Bank of Nigeria (CBN) has concluded plans to launch a portal solely dedicated for reports of frauds arising from the use of all the electronic payment channels in the country. The initiative, which was in furtherance of the apex bank’s drive to ensure safe, reliable and efficient payment system in Nigeria, was also pioneered alongside the Nigeria Electronic Fraud Forum (NeFF) and the Nigeria Inter-Bank Settlement System (NIBSS) click here to read more… (source: ThisDay 11 July 2013).
It has been disclosed that 513 Financial Institution staff were involved in aiding and abetting fraudulent transactions in 2012. Figured released shows- temporary staff constituted 42.46% of the staff involved in the frauds. Clerks and cashiers accounted for 22.03%, officers 16.76% and supervisors and managers 14.69%, while typists, technicians and stenographers were 0.94%.
In the communique presented by the Nigeria Deposit Insurance Corporation (NDIC), the body presented a 6% increase compared to previous year 2011. The major causes of fraud can be grouped into institutional and environmental factors, the body disclosed. Institutional causes include weak internal control system, uncompetitive remuneration, and lack of implementation or partial disregard of the ‘Know Your Customers’ (KYC) rules. Environmental factors include societal demands, low moral values, lack of effective deterrent and punishment, reluctance on the part of the individual banks to report fraud cases.
A total of 2 billion Naira was lost through the Nigerian banking e-channel in 2012 sources disclosed. Accounting for over 65% of the total fraud cases in the year, majority of the fraudulent transactions were perpetuated though ATM, Fraudulent transfer/withdrawals, and Internet banking channels.
Speaking at the 12th Quarterly General Meeting of the Committee of Chief Inspectors of Banks in Nigeria (CCIBN) in Lagos, Managing Director and Chief Executive Officer of Fidelity bank Plc, Mr. Reginald Ihejiahi expressed the lack of co-operation among banks as a growing concern. The present silence among banks on ATM frauds makes it difficult for banks to share vital information that would help curb the menace, the fidelity bank chief emphasized