Lagos, Abuja, and Rivers are the top states in ₦18 billion bank fraud loss

The 2023 Annual Fraud Landscape report by the  Nigeria Inter-Bank Settlement System (NIBSS) reveals key trends in financial fraud nationwide.

Lagos, River State , and the Federal Capital Territory (FCT) were identified as the top regions for financial fraud incidents in the previous year.

– Lagos accounted for 48% of fraud count and 49% of actual loss.

– Despite efforts to reduce fraud, Lagos saw a slight increase in cases from 45,952 in 2022 to 46,224 in 2023.

– Lagosmanaged to decrease the value of losses from ₦9.9 billion to ₦8.7 billion, a 12% reduction.

– Abuja and Rivers State also experienced decreases in fraud counts.

– The money stolen in Abuja increased by 73.17%, reaching ₦994 million.

– Ogun and Kaduna States saw a decline in financial fraud counts.

– Lagos and Kano experienced an increase in fraud cases.

– Cross River recorded the highest jump in actual loss value with a 2,202% increase to ₦1.04 billion.

– Internet banking fraud surged by 325% in 2023.

– A ₦2.4 billion internal fraud involving corporate accounts at a major bank drove the increase in Internet banking fraud.

– Mobile channels remained the most preferred medium for fraudsters, showing a 5% increase from the previous year.

– Despite facing these challenges, the NIBSS recorded a six percent decrease in total fraud counts to 95,620. However, actual losses from fraud increased by 23%.

– The report emphasizes the crucial need for ongoing vigilance and improved security measures within financial institutions.

– The United States was identified as the primary foreign location where Nigerian banks’ customers fell victim to fraud, with the United Kingdom and Ireland following closely behind.

– Social engineering was highlighted as the primary method utilized by fraudsters.