Bank customers lost N2.25bn to fraudsters in 2015– CBN April 2, 2016

 
Bank customers lost the sum of N2.25bn to fraudsters in 2015 despite a significant fall in the value of financial frauds recorded last year, data from the Central Bank of Nigeria and the Nigeria Inter-Bank Settlement System Plc showed.
In 2014, fraudsters made 1,461 attempts to steal N7.8bn, but succeeded in stealing N6.2bn.
The NIBSS and the CBN gave the statistics at the Cybersecurity and Banking Fraud Summit 2016 held in Lagos.
The summit was organised by Maxut Consulting in collaboration with Vasco, an online authentication firm from Europe.
The Head, Industry and Security Service, NIBSS, Mr. Femi Fadairo, said, “Though there were 10, 743 attempts to steal N4.3bn, only about N2.25bn was eventually stolen from Nigerians by fraudsters last year (2015).
 “Between 2014 and 2015, the financial sector recorded 63.7 per cent reduction in actual fraud losses. More fraud cases were reported by the banks in 2015 compared to 2014.”
Fadairo said that the Automated Teller Machine was more vulnerable to frauds in 2015 and would even be the most targeted platform in 2016.
He said the fraud volume through the ATM in 2015 was 5,133 and valued at N355, 892, 201.30.
“Point of Sales had 1,853 volume, valued at N63, 533, 467.48; Internet banking volume was 727 and valued at N263, 995, 257.70; web volume was 1,463 and valued at N173, 472, 360.60; cheque in terms of volume had 40 valued at N167, 413, 696, among others,” he added.
The Managing Director, NIBSS, Mr. Ade Shonubi, had earlier called for collaboration among financial and relevant institutions in checking such fraud cases in the future.
“While we work on collaborations, we should also consider the need to rewrite certain level of risks. This can only be achieved if we begin to pay the customer for a losss,” Shonubi added.
The Director, Banking and Payments Systems, CBN, Mr. Dipo Fatokun, said that the central bank had remained in the forefront of ensuring that banking security was not upended.
“This resonates firmly with one of the bank’s core mandates, which is, ‘To promote a sound financial system in Nigeria’. This we have achieved with the Nigeria electronic Fraud Forum,” he said.
An assistant director at the CBN, Mr. Sola Agboola, represented Fatokun.
He said that NeFF had also continued in its collaborative efforts aimed at cementing its relationship with law enforcement agencies through a visit to the Inspector General of Police, Mr. Solomon Arase.
Fatokun said, “The visit received a huge boost when the Inspector General of Police ordered the immediate establishment of dedicated e-Payment and Card Crime Unit in the Nigeria Police at the request of the bank.
“In the same vein, the Chief Justice of Nigeria was visited by the forum in 2015. This visit also strengthened the forum’s relationship with the judiciary. At the meeting, the chief justice affirmed his commitment to the objectives of the forum.”
The CBN director noted that the proposed Nigerian Risk Information Centre, aimed at reducing bank-related frauds through effective public-private partnerships, was first mooted at NeFF.
“This proposal is currently receiving management’s attention to come to life,” he added.

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