eFraud: Nigerian Banks Lose 237bn in Ten Years
Fraudsters, especially through the electronic payment channels have stolen about N237 billion since 2007 from Nigerian banks.
This was made known on Monday by the Country Manager, Accenture, Niyi Yusuf, who declared that the e-payment sector was at the risk of huge losses.
Yusuf spoke as one of the lead presenters at this year’s edition of annual payment systems and fraud conference organised by the E-Payment providers Association of Nigeria (E-PPAN) in collaboration with the CBN and other major stakeholders in the e-payment industry.
Discussions at the forum were woven around the theme: ‘Leveraging Big Data Analytics in Combating Payment Fraud.’
According to him, as technology grows, the fraudsters also become sophisticated leveraging the pervasive Internet access, stating that since 2007, about N237 billion has been at the risk of fraud.
“As the adoption of e-payment rose in Nigeria, so also the amount lost to fraud. Only 12 per cent of fraud happens across the counters while the remaining 88 per cent is online,” he said.
According to Yusuf, the emerging trends in the financial industry will make combating fraud tougher and more essential in the next five to 10 years.
Speaking at the forum, Chairman, Lambeth Trust Limited and member, board of trustees, E-PPAN, Mr. Tunde Lemo, said with increasing transactions, stakeholders have to come together to face tougher challenges in combating electronic fraud (e-fraud).
Also speaking, Deputy Governor, Operations, CBN, Mr. Adebayo Adelabu, challenged the players in the e-payment sector to take security measures very seriously, saying the apex bank would continue to implement policy framework that will continue to engender secure cashless transactions in the country.
In his submission, Chairman, Committee of E-Banking Industry Heads (CeBIH), Mr. Dele Adeyinka, noted that the rising volume of transactions across different payment channels meant that “we need to constantly look for ways to ensure the e-channels are much more secure for people to transact without fear of losing their money.”
Meanwhile, of all the e-payment channels available in the country, ATM, web and mobile account for 77 per cent of fraud incidences, according to According to Head, Industry Security Services, NIBSS, Mr. Olufemi Fadairo.
Fadairo tasked stakeholders on the need to consolidate data in the industry towards mitigating fraud incidences.
Also, Country Director, Visa, Kemi Okusanya, emphasised the need to strengthen security of digital platforms, saying the proliferation of devices that now use Internet to access e-payment transactions is an indication that the future will continue to be mobile and “we all have a duty to collaborate to ensure we secure those platforms.”
She noted that 1.9 million records are stolen everyday with 53 per cent this linked to actual identities of people. “To secure our future, we must perfect our data, devalue it when necessary and harness it to prevent fraud,” she said.
Chief Executive Officer of E-PPAN, Mrs. Regha Onajite, called on all stakeholders to leverage big data analytics to prevent fraud while also collaborating with each others in the area of sharing experiences on fraud incidences so as to prevent fraud in the system.
Meanwhile, over N57 trillion transactions are said to have been carried out across different e-payment platforms this year alone.
The platforms, according to experts who spoke at the event, cover cheque truncations system, National Instant Payment (NIP), NIBSS Electronic Funds Transfers (NEFT), Point of Sales (PoS) terminals, Automated Teller Machines (ATMs) and web-based transactions.
According to them “over N4 trillion cheque transaction has been done, NIP has done N40 trillion, NEFT has recorded N9 trillion, PoS has seen N975 billion, ATM transactions have reached N4.2 trillion while web-based transactions stand at N129 billion this year alone.”
They experts further hinted that the country is facing a tougher time in combating electronic fraud owing to the growth in emerging trends and technologies that make e-payment possible for bank customers.