Monday, 17 October 2011


Banks lost N10 billion to Automated Teller Machine (ATM) frauds in 2010, the Nigerian Deposit Insurance Corporation (NDIC) has said. According to its 2010 year end report, the NDIC disclosed that there were 1,532 reported cases of attempted frauds and forgeries, involving over N21 billion in 2010 compared with 1,764 reported cases of frauds and forgeries involving over N41.3 billion in 2009.

The corporation said 10 banks, which had the highest number of reported frauds cases during the period, were responsible for 51.08 per cent of the total amount involved in 2010, compared to 90.10 per cent in 2009.

The total amount involved, which stood at N10.87 billion in 2010, was considerably lower than the 2009 figure of N37 billion.
It said the types of frauds and forgeries perpetrated during the year under review revealed that ATM fraud topped the list, while others like fraudulent transfers/withdrawals; lodgement of stolen warrants; presentation of forged cheques; suppression of customer deposit; granting of unauthorized credits; loss of money to armed robbers and outright theft formed the outlook of frauds in the banking industry in the period.

The report said further analysis of the types of frauds and forgeries perpetrated in 2010 showed that the perpetration of ATM frauds and granting of authorised credits accounted for the largest proportion.

In terms of bank workers involved in frauds and forgeries in the period, the corporation said that a total of 357 members of staff of banks were involved in frauds and forgeries in 2010, a decrease of about 45.58 per cent compared with the previous year’s figure of 656.

It also disclosed that of the total cases, core operation staff such as supervisors, officers, accountants, managers, executive assistants, clerks and cashiers totaling 286, accounted for about 80.11 per cent of the cases, which represents an increase of 14.41 percentage points relative to the 2009 position.
(Courtesy The Nigerian compass)

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