News

How Nigerian banks lost N42.6bn to scam in 3 months

Published

2 months ago

September 15, 2024

Nigerian commercial banks have suffered a massive loss of N42.6 billion to fraud within just three months, according to a report released by the Financial Institutions Training Centre (FITC).

The report covers the period from April to June 2024 and reveals a sharp surge in fraudulent activities across banking platforms, marking a significant increase from previous quarters and years.

In comparison, Nigerian banks lost N9.4 billion to fraud throughout the entire year of 2023. The Q2 2024 loss of N42.6 billion represents an alarming 8,993 per cent increase compared to the N468.4 million lost in Q1 2024.

FITC’s report highlights a dramatic rise in fraudulent activities, with various channels, including ATMs, online platforms, bank branches, and point-of-sale terminals, being exploited.

FITC’s data indicates that miscellaneous and other types of fraud accounted for 96.46 per cent of the total losses, amounting to N41.14 billion.

This category dwarfs the losses from fraudulent withdrawals and computer/web fraud, which amounted to N781.2 million and N400.7 million, respectively.

The FITC report, based on fraud returns from 28 deposit money institutions, shows that 80 cases were reported during Q2, with a significant jump in the amount involved.

The sum involved in fraud cases rose by 1,784 per cent, from N2.9 billion in Q1 to an estimated N56.3 billion in Q2.

Computer and web-related fraud saw a 1,560 percent increase in losses, surging from N24 million in Q1 to N400.8 million in Q2. Despite the overall rise, card fraud decreased by 47.66 percent, dropping from 21,469 incidents in Q1 to 11,237 in Q2.

Meanwhile, fraudulent activities involving cheques and cash increased by 36.67 percent and 9.09 percent, respectively.

In terms of channels, bank branches experienced the most significant spike, with losses skyrocketing by 31,497 percent from N133.9 million in Q1 to N42.2 billion in Q2 2024.

However, mobile fraud recorded a decline, with losses decreasing by 59 percent from N216.4 million in Q1 to N88.7 million in Q2.

With these startling figures, the FITC urged Nigerian banks to strengthen their monitoring and auditing procedures.

“Banks should enhance their monitoring systems by utilising AI-driven tools that can flag unusual entries or patterns,” the Centre advised.

They recommended that continuous, automated systems be implemented to detect anomalies in settlement files.

To mitigate further risks, the FITC suggested restricting access to sensitive settlement files to a small, vetted group of personnel trained in the latest security protocols.

“Multi-factor authentication and role-based access controls are essential in reducing the risk of unauthorised access or changes to these files,” the Centre added.

As banks grapple with these alarming losses, FITC emphasised the importance of regular, unannounced internal audits. The audits should focus on settlement processes to promptly identify and address any irregularities.

The recent surge in fraud has sharply highlighted Nigeria’s banking sector’s vulnerability to evolving security threats.

The Centre’s recommendations serve as a crucial roadmap for banks to improve their resilience and curb the rising trend of financial fraud.

News

At last, Marketers Agree to Crash Petrol Prices as Dangote Sells Fuel at Reduced Cost after Deal

Published

23 minutes ago

November 16, 2024

Kayode Sanni-Arewa

By Kayode Sanni-Arewa

The Independent Petroleum Marketers Association of Nigeria (IPMAN) said about 30,000 of its members will start lifting petrol from the Dangote Refinery The association’s president, Abubakar Maigandi, said that the refinery agreed to sell the product at N940 and N960, respectively He said the development means that petrol prices will crash at the pumps in the coming weeks following the new deal

The Independent Petroleum Marketers Association of Nigeria (IPMAN) says over 30,000 of its members are ready to buy petrol in bulk from the Dangote Refinery. The association revealed that the petrol price from the mega refinery was about N940 per litre via ships and N990 via trucks.

IPMAN president Abubakar Maigandi disclosed in a television interview on Tuesday, November 12, 2024, that the petrol pump prices at its outlets will drop following the deal with the refinery. The association reached a deal with the $20 billion refinery on Monday, November 11, 2024, to purchase petrol, diesel, and other petroleum products directly. The agreement comes after months of negotiations following the exit of the Nigerian National Petroleum Company Limited (NNPC) as the sole off-taker of the refinery.

Petrol prices to crash by over N50 Maigandi explained that the Lekki-based facility had been obliged to let marketers buy petrol, diesel, and Kerosene to supply to their depots and retail outlets. The IPMAN boss updated Nigerians on the pricing, saying the refinery gave marketers two rates based on preferences. He said marketers can load at the gantry at N990 per litre or vial vessel transport at N940. Punch reports that the new price is lower than the N960 and N990 per litre on ships and trucks offered by the refinery last week.

The IPMAN helmsman disclosed that the partnership aims to ensure a consistent and affordable supply of petrol and other products nationwide. He stated further that petrol prices may crash by N50 or more, depending on the location.

PETROAN set up a meeting with Dangote Refinery According to Maigandi, the direct purchase of petrol from the refinery will end payments to intermediaries such as the NNPC and depot owners, saying that the cost will reflect on petrol prices in the coming weeks. The IPMAN president said the new arrangement will also end fuel scarcity as products will be available nationwide in all seasons.

Additionally, the management of the Dangote Refinery is set to meet with Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN) officials to discuss petrol lifting. The group’s publicity secretary, Joseph Obele, said the refinery, through its president, Billy Harry, mailed seeking a business meeting.

Obele said Harry has inaugurated a team of seven persons to represent the association at the meeting. NNPC to now sell only Dangote petrol Legit.ng earlier reported that NNPC had announced that it stopped importing refined petroleum products. Mele Kyari, NNPC’s Group Chief Executive Officer, disclosed this while speaking at the Lagos’s Nigerian Association of Petroleum Explorationists’ (NAPE) conference and said that the company now sources its fuel needs from the Dangote Petroleum Refinery.

Kyari confirmed that NNPC has shifted away from importation and will source from local refiners, especially Dangote, according to BusinessDay reports.

Source: Legit

News

Police save abduct£d 14-month-old baby from nanny

Published

1 hour ago

November 16, 2024

Kayode Sanni-Arewa

By Kayode Sanni-Arewa

Operatives of the Edo State Police Command have successfully rescued a 14-month-old baby, Grace Osamagbe, who was abducted by her nanny, Rejoice Chukwu, in April.

Commissioner of Police Umoru Ozigi told newsmen on Saturday in Benin, that the Anti-Kidnapping and Cyber Crime Unit arrested Chukwu, 24, and her boyfriend, Destiny Uchechukwu, 28, in Uyo, Akwa-Ibom

According to Ozigi, the suspects abducted the child in Benin and collected a ransom of N160,000.

I lost my hands, girlfriend, dad’s landed properties survived depression; but I’m alive’0:00 / 0:00

“In spite of receiving the ransom, the suspects allegedly sold the baby for N500,000 to Doris Chiwendu in Owerri, Imo State.

“Following intense interrogation, police tracked down Chiwendu and another suspect, Jane Amaigbo, in Ubomiri, Imo State, and rescued the baby on November 9.”

The police commissioner explained that the suspects would soon be charged in court.

News

Ondo: Hoodlums attack INEC officials in Ogbagi Akoko, destr0y electoral materials, others

Published

2 hours ago

November 16, 2024

Naijablitznews

Some hoodlums have attacked and assaulted officials of the Independent National Electoral Commission (INEC) at Polling Unit 19, Ward 6 Ogbagi in the Akoko area of Ondo State in the ongoing governorship election in the state.

According to a video posted on social media, the Presiding Officer (PO) of the polling unit said that the attackers destroyed all the electoral materials at the polling unit, stole their phones and purses, and physically assaulted them.

The Presiding Officer, who said that the attack happened shortly after a PDP agent at the polling unit was arrested by the police for tearing votes, said that her Assistant Presiding Officer 1 (APO 1) she identified as Bello Samuel, had been missing since they were attacked.

Narrating what happened, the Presiding Officer said, “As the process of the election was going on, a party agent from PDP tore a vote without my consent. I don’t know his name because he had not indicated his name.

“I was trying to address him but he asked me to do my work. In order to resolve the matter, the Kabiyesi of the community (community leader) came but he (the PDP) agent was trying to tear another vote when the officers (police) at the polling unit called the DPO for his arrest.

“They (police) asked me what I wanted and I said he should be removed or the polling unit should be canceled. Then, he was arrested and the election continued.

“Unaware, we discovered a gang of people parking the election materials and they beat us up – I and my APOs. Even till now, I haven’t seen my APO 1, Bello Samuel by name.

“Our phones have been stolen with our purses, and all the electoral materials have been destroyed except the BVAS which I escaped with.”

She said that before the hoodlums attacked them, “I called SPO and the officers called the DPO. After that, I know nothing preserved by grace.”