close
close

Nigerian banks fire 35 employees for involvement in Q1 2024 fraud

Nigerian banks fire 35 employees for involvement in Q1 2024 fraud

Commercial banks in Nigeria fired 35 employees between January and March this year over their involvement in the fraud.

The Financial Institutions Training Center (FITC) revealed this in its Fraud and Counterfeiting Report for Q1 2024, which it published recently.

This represents a 288 percent increase in the number of employees whose contracts were terminated, compared to the nine cases of contract termination recorded in Q4 2023.

However, staff involvement in fraud decreased by 12.96%, from 54 cases in Q4 2023 to 47 in Q1 2024.

News continues after this ad






News continues after this ad




Source: FITC

Involvement of third parties

According to the report, third-party involvement in fraud cases increased by 0.45%, a slight increase compared to the previous quarter. The number of cases increased from 10,350 in the fourth quarter of 2023 to 10,397 in the first quarter of 2024.

Meanwhile, bank losses due to financial fraud in the first quarter of this year fell by 77.62% compared to the previous quarter.

The FITC report revealed that banks lost N468.42 million in the first quarter, a significant decline compared to the loss of N2.09 billion recorded in the fourth quarter of 2023.

The report also showed that in quantitative terms, frauds totalled N2.99 billion, a 56.73 per cent decrease compared to the N6.91 billion recorded in the previous quarter.

Decrease in reported fraud cases

According to the report, the number of fraud cases reported by banks decreased compared to the previous quarter.

“A total of eleven thousand, four hundred and seventy-two (11,472) cases were reported during the first quarter of 2024, which compared to twelve thousand, four hundred and five (12,405) cases reported during the fourth quarter of 2023 represents a decrease of 7.52 percent.” the organization stated.

While hailing the decline in fraud and losses in the first quarter of 2024, the FITC said banks will need to be more vigilant and also more closely examine their actions to control fraud this quarter and improve them to ensure that fraud continues to decrease in the future.

He added that banks must ensure that advanced fraud detection and analytics technologies are in place to constantly monitor transactions for suspicious patterns and anomalies.

“Recently, there has been a surge in new technologies including artificial intelligence (AI), machine learning (ML), robotic process automation (RPA), advanced analytics, predictive modeling, etc. These new technologies can be used to identify fraud patterns and proactively detect new frauds.” FITC stated.

However, the agency warned financial institutions about the need to comply with regulatory standards, adopt transparent decision-making processes and take into account ethical issues when implementing these technologies.