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

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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.

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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.

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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.

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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.

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“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.

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Guber poll :PDP govs storm Edo to support Ighodalo

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By Kayode Sanni-Arewa

Barely 24hours to governorship election in Edo State, no fewer than two governors elected on the platform of Peoples Democratic Party (PDP) on Friday arrived Benin City.

The governors, Ahmadu Fintiri of Adamawa and Kefas Agbu of Taraba, arrived the state to mobilise support for the party’s candidate, Asue Ighodalo.

Fintiri made this known in a post on his social media page on Friday evening.

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He said : “Just touched down in Edo State alongside my brother, Gov. Agbu Kefas, ahead of the September 21st gubernatorial election. We stand united in support of our Official PDP Nigeria candidate, Asue ighodalo, for a brighter future.”

Edo governor, Godwin Obaseki, who is the PDP leader in the state, had earlier cried out over alleged plot by the All Progressives Congress to rig the election.

As at the time of filling this report, it was unclear if other PDP governors would also hit the state for the election

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Speed Darlington taunt Burna Boy about his grammy award (+Video)

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……. As Speed Darlington queries Afrobeats singer, Burna Boy over his Grammy win.

By Ojomah Austin.

 

Controversial Nigerian rapper, Speed Darlington has sparked controversy with his claims that Burna Boy’s Grammy Award win can be attributed to the influential role of American rapper and entrepreneur, P. Diddy.

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Amid allegations against US rapper, P.Diddy, resulting in his arrest, Speed Darlington suggested that Burna Boy had an intimate relationship with Diddy which paved the way for him to win the Grammy.

Speed Darlington’s bold and contentious assertion comes amidst recent allegations surrounding Diddy, who was reportedly arrested by the Federal Bureau of Investigation (FBI) on charges of human trafficking and racketeering conspiracy.

In a provocative Instagram video, Speed Darlington credited Diddy for Burna Boy’s rapid ascent to international fame and Grammy success, highlighting the American rapper’s significant impact on Burna Boy’s music career.

Speed Darlington openly challenged Burna Boy to disclose the nature of his relationship with Diddy. Suggesting an amorous relationship between the duo, he blatantly asked Burna Boy to reveal how many bottles of oil Diddy used on his buttocks before he was able to win a Grammy.

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In his words:

“It wasn’t long after Burna Boy posted a photo of him and Diddy that he won a Grammy Award. Burna Boy, don’t be offended, but how many oils did Diddy use on your nyash before they gave you the Grammy Award?”.

In response to Speed Darlington’s video, One @oluchukwu_____ wrote: “Akpis confidence need to be studied 😂😂.”

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vibe_with_fiona wrote: “When burna comes for him,make una no say burna too do o?”

godson_allsom wrote: “If there is Grammy for comedians 😂 akpi for done win like 10.”

official_kahlan wrote: “Presido I don tire to defend you 😂 ga zu ike 🙄.”

asikosharon50 wrote: “Very anyhow talk, Burnaboy won Grammy for his hard work and talent . If na Diddy dey share Grammy why him own Artist for him label nor dey win the Grammy? Na him be say Tems dey and wizkid sef they nick people dem work with naa, useless talk …”

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jaytee_yna wrote: “I’m a big fan of Akpi but this is so irrelevant and irresponsible. Burna’s hardwork & God’s grace gave him the Grammy. Okbye!”

lorah_irez wrote: “If person never bèat akpi he no go rest, wetin be this na 😂😂😂.”

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JUST IN: Again, APC loses battle to disqualify PDP candidate, Ighodalo in Edo guber poll

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By Ojomah Austin.

 

The APC suit filed at the federal high court in Abuja seeking to oust Ighodalo from the gubernatorial race was dismissed on Friday evening by Justice Peter Lifu.

An eleventh-hour attempt by the All Progressives Congress, APC to get the governorship candidate of the Peoples Democratic Party (PDP) Asue Ighodalo disqualified from the Edo State Governorship election has been dismissed.

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The Judge agreed with Ighodalo’s lawyer, Chief Akinlolu Kehinde that the suit was frivolous, baseless, and unwarranted and was thrown out.

In his judgment in the suit, Justice Lifu rejected the prayer of the APC to use another judgment of the same court that had queried the validity of the primary election that produced Ighodalo to kick him out of the race.

In a suit marked THC/ABJ/CS/165/2024, Justice Inyang Ekwo had on July 4 held that PDP was wrong in excluding 378 delegates from its February 22 primary election that produced Ighodalo.

Although Justice Ekwo did not categorically declare the primary election invalid, the APC cashing in on Ekwo’s finding, filed a fresh suit to disqualify Ighodalo on the strength of the alleged unlawful exclusion.

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However, Justice Lifu upheld the submission of the senior lawyer that the federal high court cannot sit as an appellate court in its own judgment.

The Judge also agreed that APC was a busybody and meddlesome interloper by dabbing into the internal affairs of PDP.

Besides, Justice Lifu also upheld the argument of Kehinde SAN that the high court judgment being used to press for Ighodalo’s disqualification had since been voided and set aside by the Court of Appeal in Abuja.

The Judge subsequently dismissed the APC’s disqualification request on the ground that it lacked merit and substance.

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The APC had sued the Independent National Electoral Commission INEC, Asue Ighodalo and PDP as 1st to 3rd defendants respectively.

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