The Nigerian Inter Bank Settlement System (NIBSS) has disclosed that a total of 1,461 cases of electronic frauds were recorded in Nigeria in 2014. These figures, NIBSS said represented an increase when compared to the 822 reported cases in 2013
NIBSS said internet banking, ATMs and other electronic platforms are responsible for the increased growth of fraudulent activities. Specifically, NIBSS said internet banking and ATM were the lead channels for perpetuating e-fraud in 2014..
In 2014, it said ATM machines were the major victims of fraudulent activities in terms of volume as it experienced the highest number of fraudulent transactions. It however, said that Internet banking actually accounted for a loss of about N3.2 billion to fraudulent transactions in terms of value.
“As for 2013, there were quite substantial amount fraudulent transactions in terms of volume on Internet banking and Web based transactions. Also, Across the Counter accounted for almost N16 billion of the attempted fraud, which is the bulk of fraud witnessed in 2013,” NIBSS said.
According to NIBSS, electronic platforms such as Internet Banking had 287 volume of fraud for 2014; ecommerce 114; Point of Sales 166; Web 218; ATM 491, Mobile 21. Non-electronic platforms including Across Counter and Cheques recorded 153 and 11 volume of transactions.
“Although, the figures show that more work needs to be done to improve apprehension rate. However, the low number is due to some constraints like the law/legal context that isn’t clearly defined when it comes to financial and cyber-crimes carried out using electronic platforms. A major issue is the collaboration of the law enforcement agents and the financial industry,” NIBSS said.
