Bank customers lost N2.25bn to fraudsters in 2015 – CBN.

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.

[Punch]