How Banking Sector Lost N5bn To Fraud In 9 Months- NIBSS

The Nigeria Inter-Bank Settlement System Plc has revealed that more than N5 billion was lost in the banking sector between January and September 2020 due to fraud.

It disclosed this in its NIBSS Insight report on ‘Fraud in the Nigerian Financial Services’.

Part of the report read, “On a global scale , fraudulent activities have resulted in losses amounting to about $ 42 billion.

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Approximately 39 per cent are perpetrated by external parties while 37 per cent are perpetrated by internal parties.

“Driving deeper in Nigerian industry data, the actual figures reported by the industry are quite striking.

“This year, about 91 per cent of all fraud attempts as at September have resulted in a total loss, and more than N5 billion was lost as a result of fraud within the period.

“This represents financial institutions with an opportunity to protect their investments as well as attract customers by offering increased artificial protection and the ability to recover lost funds more easily.”

According to the report, data from the industry anti-fraud portal data showed that 56 per cent of all reported fraud attempts were carried out using social engineering.