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Online-banking fraud made up 98.68% of all reported financial crimes in 2017—NDIC

The Nigeria Deposit Insurance Corporation (NDIC) has disclosed that internet/online-banking and ATM/Card-related fraud-types reported in 2017 constituted 24,266 or 98.68 per cent when all cases are put together within the period under review.

The fraud committed using the platforms lead to loss of about N1.51bn or 63.66 per cent of real losses in the industry same year. Total loss due to related fraud in 2017 stood at N2.37bn.

Otherwise, NDIC noted that fraud cases in banks went up by 56.3% in 2017.

There were 26,182 cases of fraud and forgeries recorded in the banks in 2017 which is 56.30% higher compared to 16,751 cases reported in 2016, the Nigeria Deposit Insurance Corporation has said.

However, the amount involved in the fraudulent activities documented increased by ₦3.33 billion from the ₦8.68 billion reported in 2016 to ₦12.01 billion in 2017 or 38%. However, the Expected/Actual loss slightly-decreased by ₦24.42 million or 1.03% from ₦2.39 billion in 2016 to ₦2.37 billion in 2017.

A statement from the Head, Communications and Public Affairs, Mohammed Kudu Ibrahim revealed other miscellaneous crimes such as fraudulent transfers/withdrawals, cash suppression, unauthorized credits, fraudulent conversion of cheques, diversion of customer deposits, diversion of bank charges, presentation of forged or stolen-cheques among others.

The 22 Licensed Commercial Banks and 4 Merchant banks rendered 286 Returns on Dismissed/Terminated staff as a result of fraud and forgeries during the year under review.

Out of the 26,182 fraud cases reported by the 26 Licensed Banks, 320 cases were attributable to internal collaboration by bank staff, meaning that majority of all successful bank fraud case is propelled by an insider.

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