The Nigeria Inter-Bank Settlement System (NIBSS) revealed that financial institutions in the country experienced a staggering loss of N17.67 billion to fraudulent activities throughout 2023.
This disclosure came through NIBSS’s recently published Annual Fraud Landscape report, covering the period from January to December 2023.
Established in 1993, NIBSS facilitates same-day clearing and settlement of inter-bank transfers and payments, serving as a crucial mechanism within Nigeria’s financial infrastructure.
Despite a six per cent decrease in the number of reported fraud cases, the actual financial loss due to fraud surged by 23 per cent compared to the previous year. Notably, the first quarter of 2023 recorded the highest volume of fraud incidents, while the fourth quarter saw the highest monetary losses.
May emerged as the month with the highest number of reported fraud cases, totaling 11,716, followed closely by February with 9,492 cases. Conversely, October registered the highest financial loss at N3.7 billion, trailed by January with N2.7 billion.
Data collected from financial institutions via the Industry Fraud Reporting Portal revealed that the mobile channel remained the most preferred avenue for fraudulent activities, witnessing a five per cent increase from the previous year. Additionally, the Web and POS (Point of Sale) channels were identified as the most exploited payment channels by fraudsters in 2023. Notably, Web Fraud cases decreased by 38 per cent, while ATM fraud experienced a significant 64 per cent reduction from 2022 to 2023.
Individuals aged 40 and above continued to be the primary targets of fraudsters, reflecting a consistent targeting strategy. NIBSS emphasized the necessity for continuous education and protection efforts to safeguard individuals in this demographic from falling victim to fraudulent schemes.
In 2023, a total of 80,658 unique customers were deceived by fraudsters, marking a four per cent decrease from the previous year’s figure of 84,130. However, NIBSS underscored that despite this decline, the severity of the issue persists, urging the financial industry to remain vigilant and enhance security measures collaboratively.
The report maintained that thorough examination, modification, and reinforcement of existing regulations are imperative to mitigate the potential for fraud and improve the chances of successful recovery.
