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.