A recent report by the Financial Institutions Training Centre (FITC) reveals that Nigerian banks lost a staggering N42.6 billion to fraud between April and June 2024. This amount surpasses the total loss for the entire previous year, which was N9.4 billion.

The Central Bank of Nigeria (CBN) has responded to the report by directing payment service providers to track all Point of Sale (PoS) transactions and imposing a daily transaction limit for contactless payments. The CBN aims to enhance monitoring and auditing procedures to prevent further losses.

The FITC report highlights the need for banks to utilize AI-driven tools to detect unusual transactions and implement continuous monitoring systems. Regular internal audits can also help identify and address irregularities promptly.

Analysts attribute the increase in fraud to insider abuses, regulatory laxity, and the CBN's focus on non-core mandates. They suggest that the CBN should prioritize supervisory responsibilities and core mandates like price and exchange rate stability.

The report shows that fraudulent activities occurred through various channels, including ATMs, online platforms, bank branches, and PoS terminals. Card fraud decreased, while cheque and cash-related fraud increased. Losses through bank branch-related channels rose by 31,497%, and computer/web frauds increased by 1,560%.

To curb the menace, FITC advises financial institutions to strengthen access controls, limit access to settlement files, and implement multi-factor authentication and role-based access controls.