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- About 85 bank employees lost their jobs in 2024 due to fraud, as 105 staffers were indicted for fraudulent activities
- A report by the Financial Institutions Training Centre showed that there was a decline in bank fraud in the first half of 2024
- The report also showed that Nigerian banks invested heavily in personnel costs in the same period
Legit.ng’s Pascal Oparada has reported on tech, energy, stocks, investment and the economy for over a decade.
A report on Fraud and Forgeries in Nigerian Banks by the Financial Institutions Training Centre (FITC) in the first half of this year revealed that at least 105 bank employees were involved in fraud.
However, this figure was a 34.38% decrease from the 160 employees involved in fraud cases in 2024.
Source: UGC
The amount lost to fraud cases rises
The report said that despite the decline in staff involvement in fraud, the total amount lost to fraud cases rose by 380.13%, up from N12.33 billion between January and June 2023 to N59.2 billion in the same period this year.
The number of bank employees terminations due to fraud rose, with 84 employees dismissed in the first half of 2024, an increase of 223.08% from the 26 terminations recorded in the same period last year.
However, outsider involvement in fraud cases declined slightly by 10.78%, with 21,335 cases reported in the first six months, a decline from 23,912 in 2023.
The top channels for fraud in banks
Data showed that outsider involvement in fraud cases stood at 92.74% of bank fraud cases between January and June this year.
The fraudsters employed different channels to perpetrate their activities.
The three most prevalent channels for fraud in banks were via ATM, web, and fraud involving bank branches.
In the period under review, fraud via bank branches tops the list with a significant margin involving a total of N55.01 billion, representing 646.4% from N7.37 billion lost to fraud at bank branches in the same period in 2023.
The banks recorded web fraud of N1.87 billion, while ATM-relation fraud increased to N43.1 million in the review period.
Nigerian banks raise wages and salaries
The development comes despite an increase in the wages and salary expenses of some of the banks amid inflation.
According to a Punch report, the personnel expenses of 10 banks spiked by 96% in the first half of 2024, hitting N615.8 billion, from N314.4 billion recorded in the same period in 2023.
The increase in personnel costs shows the growing operating expenses in the banking industry.
Top banks with salary increases in 2024
Access Bank recorded the highest wage expenses of N151.5 billion, a 154% increase from N61.9 billion in 2023.
First Bank came second with N134.2 billion in staff expenses, representing a 110% yearly increase from N63.9 billion in the same period last year.
UBA recorded a 92% wage bill growth, rising to N126.6 billion in the first half of 2024, relative to N65.9 billion in the first half of 2023.
Zenith Bank came next, with a 64% increase in wage bill to N63.5 billion, up from N38.6 billion recorded last year.
Guaranty Trust Bank’s personnel expenses doubled by 98% to N39.3 billion in the first half of 2024 from N19.9 billion in 2023.
FCMB's wage bill rose 74% to N26.6 billion from N15.2 billion in 2023.
Wema Bank’s wage expenditure increased 77%, hitting N15.6 billion, from N8.8 billion the previous year.
Sterling Bank recorded a wage bill growth of 41% at N12.5 billion, relative to N8.9 billion in 2024.
Jaiz Bank also records a 78% rise in personnel expenses at N5.5 billion from N3.1 billion in 2023.
According to reports, FITC asked the bank to use multifactor authentication, restricting access to critical data and systems to authorised personnel only.
Legit.ng earlier reported that Nigerian banks invested heavily in tech upgrades, migrating their platforms to a more secure and robust platform.
Nigeria's most profitable banks in 2024
Legit.ng earlier reported that Nigerian financial institutions have recorded impressive numbers despite the challenging economy in the first half of 2024.
Analysis by Legit.ng showed that the total profit after tax (PAT) of the 11 banks listed on the Nigerian Exchange increased by 68.21% year-on-year, from N1.67 trillion in H1 2023 to N2.82 trillion in H1 2024.
It also noted foreign assets held by the banks have been inflated in naira terms.
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Source: Legit.ng
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