BY OLUGBENGA SOYELE |
The Nigeria Deposit Insurance Corporation (NDIC) has attributed the increase in bank related scams to the sophistication of fraud related techniques, such as hacking and increase in information technology related products and usage.
The NDIC’s executive director, corporate services, Omolola Abiola-Edewor, who stated this at the Corporation’s annual capacity building programme for law enforcement agencies, also attributed the increase to fraudulent withdrawals and unauthorized credit.
Mrs. Abiola-Edewor, who was represented by an NDIC director Joshua Etopidiok, also stated that the volume of fraud cases in banks in recent years are capable of causing irreversible damage to the stability of the banking system.
She, however, maintained that the corporation is in collaboration with sister agencies in law enforcement to curtail cybercrimes in the financial system.
At the programme with the theme: “Effective Investigation and Prosecution of Banking Malpractices that led to the Failure of Banks in Nigeria”, Abiola-Edewor referred to a 2020 report that stated that banks in the country lost over N5 billion to fraudsters between January and September 2020.
She added that the losses for only nine months, was comparable to the financial losses insured institutions suffered for the entire 12 months of 2019.
She also said that a total of 52,754 fraud cases were reported to the NDIC against 37,817 in 2018 and 26,182 in 2017, according to the NDIC’s 2019 annual report.
The amount involved in the fraud cases stood at N204.65 billion in 2019, compared to N38.93billion in 2018 and N12.01 billion in 2017, Abiola-Edewor said.