Despite efforts by regulators and operators in the banking sector to checkmate cases of frauds and forgeries, figures from the Nigerian Deposit Insurance Corporation (NDIC) shows that rather than abating, a total of 12,279 fraud cases were reported in 2015, representing an increase of 15.71 percent when compared with 10,612 fraud cases that was reported in 2014.
According to the 2015 annual report of NDIC, the amount involved decreased significantly by N7.59 billion representing 29.63 percent from N25.608 billion in 2014 to N18.021 billion in 2015. Similarly, the actual loss suffered by the insured banks decreased by N3.02 billion, representing 48.79 percent from N6.19 billion in 2014 to N3.17 billion in 2015.
Out of the 12,279 fraud cases reported by the Deposit Money Banks (DMBs,) 425 cases were attributed to staff. Which reveals that the number of fraud cases perpetrated by staff had decreased slightly from 465 in 2014 to 425 in 2015. Similarly, losses arising therefrom substantially decreased by 70 percent from N3.165 billion in 2014 to N0.979 billion in 2015.
While the highest percentage of frauds and forgeries cases of 38.59 percent was perpetrated by temporary staff. NDIC explained that the actual loss sustained in respect of internet banking fraud was N857 million, representing 27 percent of total actual loss of the industry.
There was an increase in the frequency of Automated Teller Machine (ATM)/Card “Related fraud cases from 7,181 in 2014 to 8,039 in 2015, an increase of 11.95 percent.
However, the loss suffered by the industry due to ATM/Card frauds declined significantly by 59.4 percent from previous year figure of N1.242 billion to N0.504 billion, representing 15.9 percent of total industry loss to frauds and forgeries.
On Sustainability Principle, the corporation said they remained committed to the implementation of the principle, which necessitated the establishment of a Sustainable Banking Desk in the Managing Director Office.