In the past five years, Nigeria’s financial industry has seen an increase in fraudulent activities and a growth in digital payment transactions.
The annual fraud rate spiked by 11%, from 44.947 cases in 2019 to 95,620 in 2023, with corresponding losses rising by 496% from N2.9 billion to N17.67 billion during the same period.
Also, the ratio of the total reported fraud cases to the value of transactions has slightly risen from 0.0019% in 2019 to 0.0022% in the past year, showing the growing challenge of fighting fraud in the digital economy.
Reports say the Nigerian Inter-Bank Settlement System (NIBSS) 2023 Annual Fraud Landscape report shows a disturbing trend in international fraud activities targeting Nigerian bank customers.
The geographical spread and intensity of fraud reported in 2023 reinforce the need for increased security and vigilance worldwide.
Top ten foreign nations in which Nigerian bank customers were defrauded in 2023
The country recorded a drop in fraud cases from 3,939 in 2022 to 486 in 2023. The US was the most affected country, with a total loss of N79.9 million, down from N95.83 million the year before.
The total amount lost to fraud decreased by more than 16%, showing a shift towards high-value targets.
The number of fraud cases in the country rose from 68 in 2022 to 109 in 2023. The financial losses rose astronomically tenfold, to N15.5 million from N1.66 million.
The UK also experienced a drop in fraud cases in 2023. Reported cases dropped from 172 in 2022 to 81 in 2023.
The total amount lost rose to N10.8 million from N5.11 million, showing a decrease in the number of cases but more fraud cases.
The country reported four fraud cases in 2023, leading to a loss of N2.4 million, showing the sophistry of the fraud types in Singapore.
The country recorded one fraud case in the past year, bringing about N2 million in losses.
Reports say this lone case’s high value was a sophisticated operation targeting individuals with high net worth.
The oil-rich country reported about five cases leading to an N1.9 million loss, which shows the impact of fraudulent activities in the region targeting Nigerian customers.
The country reported decreased fraud cases from 35 in 2022 to 13 in 2023 but recorded a rise in financial losses of N1.8 million in 2023 from the N1,25 million recorded in 2022.
Nine cases cost N1.4 million in the Netherlands in 2023, highlighting the prevalence of fraudulent activities in the country.
Luxembourg recorded ten fraud cases with a total financial loss of N1.4 million, indicating the presence of fraudulent activities within its borders.
Despite just four cases, Kenya incurred losses amounting to N0.76 million, emphasizing the need for vigilance against fraud despite relatively low numbers.
