Yahoo boys: Financial Intelligence reports increase in cases of fraudulent transfers

• The Nigerian Financial Intelligence Unit reported an increase in the fraudulent petitions related to the alleged transfer to Nigerian banks
• It stated that the activities usually targeted at victims pose a threat to government organisations, financial institutions, and law enforcement
• The group recommended that the financial institution carry out Enhanced Due Diligence to confirm the legitimacy of the documents that were submitted

Legit.ng journalist Zainab Iwayemi has over 3-year-experience covering the Economy, Technology, and Capital Market.

A spike in fraudulent petitions pertaining the alleged transfer of money from international banks to Nigerian banks has been reported by the Nigerian Financial Intelligence Unit.

NFIU warned the public to be wary of telegraphic transfer documents from central European banks. Photo Credit: Seksan Mongkhonkhamsao
Source: Getty Images

According to the organisation, these fraudulent activities steadily focus on victims and present a continuous risk to government organisations, financial institutions, and law enforcement.

In a study dated June 19, 2024, the NFIU stated that because of the complexity and frequency of these schemes, increased security measures and coordinated responses from all impacted industries are urgently needed to reduce risks and safeguard stakeholders.

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It partly read,

“Our findings suggest that deceptive, fraudulent petitions involving the tracing and recovery of funds allegedly transferred from foreign banks to Nigerian banks are becoming a recurrent threat to not only the targeted victim(s) but also Financial Institutions, Law Enforcement Agencies and other government agencies.“Financial institutions and the general public are advised to be vigilant and adopt recommendations that will help to further safeguard essential documents from being easily accessible to prevent their use as a backup for such petitions.

It cautioned the public to be wary of telegraphic transfer documents from central European banks because almost all fraudulent claims originate from the same foreign banks and jurisdictions.

It stated,

“Relevant LEAs should also take steps to effectively address the problem of fraudulent telex copies by ensuring the prompt prosecution and sanctioning of offenders to serve as a deterrence.”

The intelligence unit specifically addressed the impact of fraudulent petitions on banks. It claimed that false accusations fabricated by material factual misrepresentation could cause the banking public to lose faith in the banks.

How suspected fraud should be treated?

The Punch reported that the intelligence unit suggested that the financial institution should immediately conduct Enhanced Due Diligence, sufficient to establish the authenticity or otherwise of the document presented, upon receipt of a letter from a customer anticipating a huge inflow, evidenced by the usual Telex copy.

It specifically addressed the impact of fraudulent petitions on banks. It claimed that the banking public may lose faith in the banks if they have reason to think that they are truly holding funds on their server due to false accusations created by major factual misrepresentations.

The organisation suggested that the financial institution should immediately conduct Enhanced Due Diligence, sufficient to establish the authenticity or otherwise of the document presented, upon receipt of a letter from a customer anticipating a huge inflow, evidenced by the usual Telex copy.

The report added,

“The purpose of the funds, according to the petition, is for investment in the real estate sector. NFIU said a law firm once forwarded a petition on behalf of its client seeking to trace and recover the sum of €6,000,000,000.00 (Six Billion Euros) only transferred from foreign banks to the client’s Nigerian bank account.“

The NFIU, however, urged the Nigerian Bar Association to enlighten its members to verify documents received from clients before acting on them.

Bank discovers new app used by fraudsters

Legit.ng reported that Wema Bank has issued a warning regarding a new banking cyber threat targeting android devices.

The bank said the malware is called "Brokewell" and has cautioned customers to remain alert and never download.

Wema Bank explained that the malware is designed to steal sensitive information such as banking details and personal data, is being spread through various means, including phishing emails and malicious websites.

Source: Legit.ng