Report on Frauds and Forgeries in Banks

Transcription

1 Report on Frauds and Forgeries in Banks January - March, 24

2 Report on Frauds and Forgeries in the Nigerian Banking Industry for the Period January - March, 24 Overview In the first quarter of 24, FITC received 66 returns from 22 deposit money banks on incidence of fraud and forgery that occurred in their respective institutions. Of these returns, 22 were received for the month of January, 22 were received for February, and 22 returns were received for March. Volume and Value of Fraud Cases Analysis of the returns shows that a total of 2,957 cases 2 (volume) of frauds and forgeries were reported in the banking industry during the period (January - March, 24), compared to 2,57 cases reported in the preceding quarter (October December, 23), representing an increase of 7.95 per cent. The types of fraud that were predominant during the review period include: fraudulent ATM withdrawals, computer/web fraud, miscellaneous 3 (other types of) fraud, fraudulent withdrawals, and suppression of entries. Appendices I and II contain details of the fraud incidence that occurred during the review period with graphical illustrations. During the period, the total amount 4 (value) of money involved in reported cases of fraud plunged to N3. billion from N3.66 billion in the previous quarter, indicating a significant 5.8 per cent decrease. Of the total amount (N3. billion) that was reported to be involved in fraud, N.28 billion (4. per cent) was actually lost to fraud in the banking industry; the difference of N.83 billion (58.9 per cent of the total amount involved in fraud) was recovered through the combined effort of banks internal and external control techniques: i.e. internal procedural checks and investigation processes, as well as intervention of the law enforcement and anti-graft agencies. Ranking the fraud types according to their value, Appendix II (A) shows that computer/web fraud ranked first at N.43 billion (46.4 per cent), while miscellaneous (other types of) fraud ranked second with N765.6 million (24.64 per cent) of the total amount involved in fraud and forgery during the review period. Further analysis shows that fraudulent withdrawals ranked third at N384.5 million (2.38 per cent), while fraudulent ATM withdrawals and forged cheque with forged signature ranked fourth and fifth at N69.94 million (5.47 per cent) and N74.94 million (2.4 per cent) respectively. Appendix II (B) provides a graphical illustration of the amount involved in the reported cases of frauds and forgeries in the period under review. Further analysis of the returns indicates that computer/web fraud accounted for N66.23 million (48.27 per cent) of the total amount that was lost to fraudulent activities, while miscellaneous (and other types of) fraud and fraudulent withdrawals accounted for N23.78 million (5.96 per cent) and N9.2 million 2

3 (4.9 per cent) respectively. Appendix II (C) shows the amount that was actually lost to fraud and forgery activities in the first quarter of 24, while Appendix II (D) shows graphical comparison of the amount involved in fraud and the actual amount lost to fraud during the period. The Channels, the Instruments and the Personalities involved in perpetrating Fraud During the period under review, the various types of channels used to perpetrate fraud are: Web, ATM, bank branch, mobile, PoS and agent; while cash, cheques, cards and slips were the instruments used by fraudsters to carry out their nefarious activities. Analysing the banks returns by the amount involved in fraud shows that the channel that was mostly used to perpetrate fraud was bank branch, which increased by 44.9 per cent to N.45 billion from N. billion in the preceding quarter. Following this was the Web, which fell to N.43 billion from N2.37 billion in the previous quarter, thus representing a significant decrease of per cent. Further analysis according to the amount involved in fraud reveals that the instrument that was mostly used to perpetrate fraud was cash, which decreased considerably by 4.38 per cent to N.37 billion from N2.34 billion in the preceding quarter. This was closely followed by the incidence of card fraud which rose to N.63 billion from N.6 billion that was reported in the previous period, representing a significant increase of 54.4 per cent. Further details of the channels and instruments that were used in perpetrating fraud are illustrated graphically in Appendices III IV. The returns also revealed data on banks employees whose appointments were terminated as a result of involvement in fraudulent activities. This figure fell to 73 banks staff, from 87 banks employees whose appointments were terminated on similar grounds in the preceding quarter, representing a significant decrease of 6.9 per cent. This index further reinforces banks zero tolerance of their employees involvement in fraudulent practices. Conclusion and Recommendations Analysis of banks returns on fraud reveals that most of the parameters used to assess fraud and forgery in the banking industry surged during the first quarter of 24. This view was informed by the fact that during the period, total amount that was lost to fraud rose significantly to N.28 billion from N87.9 million that was reported in the fourth quarter, thus representing an increase of 46.7 per cent. Similarly, the total number of reported fraud cases in the banking industry increased by 7.95 per cent to 2,957 from 2,57 that was reported in the preceding quarter. It is encouraging to observe that the total amount that was reported to be involved in fraud dropped by 5.8 per cent to N3. billion from N3.66 billion in the previous quarter. In a similar vein, it is remarkable to observe that the amount 3

4 involved in electronic fraud 5 plunged to N.63 billion from N2.65 billion in the previous quarter, indicating a decrease of per cent. However, the actual amount that was lost to electronic fraud increased marginally by 3.97 per cent to N million, up from N million in the previous quarter. With the incessant incident of fraudulent activities in the industry, banks should endeavour to continually engage other stakeholders on ways to collaboratively combat the menace in an effective and efficient manner. In addition, banks must continually enhance their control systems to discourage potential by ensuring that their internal procedures (especially security and recruitment procedures) are regularly reviewed. While banks are encouraged to continually pay close attention to preventing fraud through their electronic platforms (i.e. web, PoS, mobile payments and ATM), they must ensure that their employees are continually trained on emerging trends in electronic fraud detection techniques, and provide basic tips to also enlighten their customers on how to prevent fraud perpetration. (Please see the appendices below for summaries of the cases of frauds and forgeries covered in this report, with comparisons between the first quarter of 23, fourth quarter of 23 and first quarter of 24 on selected concerns.) Notes: Note : Commercial, merchant and non-interest banks. Note 2 : Volume of fraud and forgery cases. Note 3 : Miscellaneous fraud include unauthorised debit, fraudulent diversions of customers fund for personal use, fraudulent debit of customers accounts, fraudulent debit of inter-branch suspense accounts, conversion of dividend warrants, dry postings, diversion of deposits, misappropriation of funds, and cash shortages. Note 4 : Value of fraud and forgery. Note 5 : Consisting of computer/web fraud, PoS fraud, mobile payment fraud, and ATM fraud. 4

5 Amount Involved Amount Lost Amount (N) Appendix I (A) Frauds and Forgeries in the Nigerian Banking Industry: A Comparison between Fourth Quarter, 23 and First Quarter, 24 S/N Variables Fourth Quarter, 23 First Quarter, 24 Total Cases reported 2,57 2,957 2 Total Amount Involved N3,66,564,68.26 N3,5,755, Total Amount Lost N87,94,36. N,276,529, Outsider Involvement 2,358 2,8 5 Insider (Staff) Involvement 6 Appointments Terminated Appendix I (B) Frauds and Forgeries in the Nigerian Banking Industry: A Comparison between Fourth Quarter, 23 and First Quarter, 24 4,,,. 3,5,,. 3,,,. Fourth Quarter 23 First Quarter 24 2,5,,. 2,,,.,5,,.,,,. 5,,.. Quarters 5

6 Total Cases Involved Outsider Involvement Insider (staff) Involvement Appointments Terminated Appendix I (C) Frauds and Forgeries in the Nigerian Banking Industry: A Comparison between Fourth Quarter, 23 and First Quarter, 24 3,5 3, 2,5 2, Fourth Quarter 23 First Quarter 24,5, 5 Quarters Appendix I (D) Frauds and Forgeries in the Nigerian Banking Industry: A Comparison between First Quarter, 23 and First Quarter, 24 S/N Variables First Quarter, 23 First Quarter, 24 Total Cases Involved,84 2,957 2 Total Amount Involved N7,527,322,37.59 N3,5,755, Total Amount Lost N2,48,67,25.54 N,276,529, Outsider Involvement,62 2,8 5 Insider (staff) Involvement 6 Appointments Terminated

7 Amount Involved Amount Lost Amount (N) Total Cases Involved Outsider Involvement Insider (staff) Involvement Appointments Terminated Appendix I (E) 3,5 3, 2,5 Frauds and Forgeries in the Nigerian Banking Industry: A Comparison between First Quarter, 23 and First Quarter, 24 First Quarter 23 First Quarter 24 2,,5, 5 Quarters Appendix I (F) Frauds and Forgeries in the Nigerian Banking Industry: A Comparison between First Quarter, 23 and First Quarter, 24 8,,,. 7,,,. 6,,,. 5,,,. 4,,,. 3,,,. 2,,,.,,,.. First Quarter 23 First Quarter 24 Quarters 7

8 Appendix II (A): Frauds and Forgeries in the Nigerian Banking Industry (First Quarter, 24) Types of Fraud Total Number of Cases Reported Involving Bank Staff Only Involving Outside Persons Only Collusion Not Specified Amount Involved (N) Actual /Expected Loss (N) Expected Loss/ Amount Involved (% ) Tellering Fraud 2 (.4) (7.43) () (.) () 8,94,45. (.29) 6,899,796. (.54) 77.2 Falsification Of Accounts: Current/Cheque, Savings/Deposits, Suspense Accounts () () () () () () () Forged Cheques with Forged Signature 32 (.8) 5 (3.38) 27 (.96) () () 74,94,53.44 (2.4) 65,863,29.44 (5.6) 87.9 Printing Of Bank Document Illegally (.3) (.68) () () () () () Clearing Fraud 5 (.7) () 5 (.8) () () 2,276,8 (.69) () Computer/Web Fraud 59 (7.2) 4 (9.46) 492 (7.57) 3 (33.33) (),432,947,697.7 (46.4) 66,23,62.94 (48.27) 43. Mobile Fraud (.3) () (.4) () (),65,. (.5),65,. (.3) Foreign Exchange Fraud 2 (.7) 2 (.35) () () () 3,35,. (.) () Cross Firing Of Cheques and Kite Flying () () () () () () () Note: All figures in parenthesis ( ) indicate percentages 8

9 Appendix II (A) Cont d: Frauds and Forgeries in the Nigerian Banking Industry (First Quarter, 24) Types of Fraud Total Number Of Cases Reported Involving Bank Staff Only Involving Outside Persons Only Collusion Not Specified Amount Involved (N) Actual /Expected Loss (N) Expected Loss/ Amount Involved (% ) Theft of Cash (.37) (6.76) (.4) () () 55,73,. (.78) 38,9,. (3.5) 7.5 Suppression of Entries: Cash/Cheques Opening and Operating Fraudulent Loans and Accounts Over-Invoicing of Service to the Bank 5 (.69) 8 (.6) () Robberies (Armed) 5 (.7) Fictitious Bank Branches Miscellaneous and Other Types of Fraud Fraudulent Withdrawals () 85 (2.87) 77 (2.6) ATM Withdrawals 2,7 (7.59) PoS Fraud 32 (.8) 47 (3.76) () () () () 42 (28.38) 5 (.4) (.68) () 3 (.) 8 (.64) () 5 (.8) () 42 (.5) 58 (2.7) 2,6 (75.57) 32 (.4) () () () () () (.) 4 (44.44) () () () () () () () () () () () 38,845,44.76 (.25) 55,5,824. (.77) () 7,966,858. (2.32) () 765,62, (24.64) 384,5,48.37 (2.38) 69,936,47.42 (5.47) 22,264,8.26 (.72) 9,676, (.54) 4,. (.3) () 7,92,858. (5.63) () 23,783, (5.96) 9,2,285.6 (4.9) 38,74,95.94 (3.3) 22,264,8.26 (.74) Total 2, ,8 9 3,5,755,48.4,276,529, Note: All figures in parenthesis ( ) indicate percentages 9

10 Tellering fraud Falsification of Account: Forged cheques with forged printing of bank document Clearing Fraud Computer/Web Fraud Telex fraud Foreign Exchange Fraud Cross Firing of cheques & Kite Theft of cash Suppression of Entries: Opening and Operating Over-invoincing of service to the Robberies (Armed) fictitious bank branches Miscellaneous and other Types Fraudulent Withdrawals ATM Withdrawals PoS Fraud Percentages Tellering fraud Falsification of Account: Forged cheques with forged printing of bank document Clearing Fraud Computer/Web Fraud Telex fraud Foreign Exchange Fraud Cross Firing of cheques & Kite Theft of cash Suppression of Entries: Opening and Operating Over-invoincing of service to Robberies (Armed) fictitious bank branches Miscellaneous and other Fraudulent Withdrawals ATM Withdrawals PoS Fraud Percentages Appendix II (B) Percentage Distribution of Amount Involved in Frauds and Forgeries (First Quarter, 24) Amount Involved Types of Fraud Appendix II (C) 6. Percentage Distribution of Amount Lost to Frauds and Forgeries (First Quarter, 24) Amount Lost Types of Fraud

11 Tellering fraud Falsification of Account: Forged cheques with forged printing of bank document Clearing Fraud Computer/Web Fraud Telex fraud Foreign Exchange Fraud Cross Firing of cheques & Theft of cash Suppression of Entries: Opening and Operating Over-invoincing of service Robberies (Armed) fictitious bank branches Miscellaneous and other Fraudulent Withdrawals ATM Withdrawals PoS Fraud Percentages Appendix II (D) Percentage Distribution of Amount Involved in and the Amount Lost to Frauds and Forgeries (First Quarter, 24) Amount Involved Amount Lost Types of Fraud Appendix III (A) Fraud and Forgeries through various Payment Channels: A Comparison between Fourth Quarter, 23 and First Quarter, 24 S/N Channels Cases: Fourth Quarter, 23 Cases: First Quarter, 24 Web ATM,539 2,7 3 Bank Branch Mobile 5 POS Van 7 Agent 4 9 Total 2,57 2,957

12 Web ATM Bank Branch Mobile POS Van Agent Amount (N) Appendix III (B) Amount Involved and Amount Lost to Fraud through various Payment Channels: A Comparison (Fourth Quarter, 23 and First Quarter, 24) S/N Channel Amount Involved, Fourth Quarter, 23 (N) Amount Involved, First Quarter, 24 (N) Amount Lost, Fourth Quarter, 23 (N) Amount Lost, First Quarter, 24 (N) Web 2,367,934,4.66,432,947, ,58,5.5 66,23, ATM 252,382,7. 69,936, ,68, ,74, Bank Branch,4,66,85.6,448,62, ,2, ,644, Mobile 22,88.,65, 22,88,65, 5 POS 27,533, ,264,8.26 8,652, ,264, Van Agent 8,885,878. 3,354,32.5,. Total 3,66,564, ,5,755, ,94,36.,276,529,762. Appendix III (C) Amount Involved and Amount Lost to Fraud through various Payment Channels: A Comparison (Fourth Quarter, 23 and First Quarter, 24) 2,5,,. 2,,,.,5,,. Amount Involved, Fourth Quarter, 23 Amount Involved, First Quarter, 24 Amount Lost, Fourth Quarter, 23 Amount Lost, First Quarter, 23,,,. 5,,.. Channels 2

13 Appendix IV (A) Frauds and Forgeries through various Instruments: A Comparison between Fourth Quarter, 23 and First Quarter, 24 S/N Instruments Cases: Fourth Quarter, 23 Cases: First Quarter, 24 Cash Cheques Cards,994 2,659 4 Slips 3 7 Total Appendix IV (B) Amount Involved and Amount Lost to Fraud through various Instruments of Transaction: A Comparison (First Quarter, 23 and First Quarter, 24) S/N Instruments Amount Involved, Fourth Quarter, 23 (N) Amount Involved, First Quarter, 23 (N) Amount Lost, Fourth Quarter, 23 (N) Amount Lost, First Quarter, 24 (N) Cash 2,34,597,262.4,37,978, ,4, ,472, Cheques 57,78, ,26,7.44 2,64, ,863, Cards,56,66,296.87,626,798, ,29, ,885, Slips 7,9,868.8,762,45. 24,932,35. 9,39,8. Total 3,66,564, ,5,755, ,94,36.,276,529,762. 3

14 Cash Cheques Cards Slip Amount (N) Appendix IV (C) Amount Involved and Amount Lost to Fraud through various Instruments of Transaction: A Comparison (Fourth Quarter, 23 and First Quarter, 24) 2,5,,. Amount Involved, Fourth Quarter, 23 2,,,.,5,,. Amount Involved, First Quarter, 24 Amount Lost, Fourth Quarter, 23 Amount Lost, First Quarter, 23,,,. 5,,.. Instruments 4

15 Report on Frauds and Forgeries in Banks April - June, 24 5

16 Report on Frauds and Forgeries in the Nigerian Banking Industry for the Period April - June, 24 Overview During the second quarter of 24, FITC received 66 returns from 22 deposit money banks on incidence of fraud and forgery that occurred in their respective institutions. Of these returns, 22 each were received for the months of April, May and June. Volume and Value of Fraud Cases Analysis of the returns shows that a total of 2,66 cases 2 (volume) of frauds and forgeries were reported in the banking industry during the period (April - June, 24), compared to 2,957 cases reported in the preceding quarter, thus representing a decrease of. per cent. The types of fraud that were reported to be predominant during the review period include: fraudulent ATM withdrawals, computer/web fraud, fraudulent withdrawals, miscellaneous 3 (other types of) fraud, suppression of entries, and opening/operating fraudulent accounts. Appendices I and II contain details of the fraud incidence that occurred during the review period with graphical illustrations. During the period, the total amount 4 (value) of money that was reported to be involved in fraud cases skyrocketed to N2.75 billion from N3. billion in the previous quarter, indicating an alarming 3.55 per cent increase. Of the total amount (N2.75 billion) involved in fraud, N million (3.75 per cent) was actually lost to fraud in the banking industry; the difference of N2.27 billion (96.24 per cent) of the total amount involved in fraud was recovered through the collective efforts of banks internal and external control techniques: i.e. internal procedural checks and investigation processes, as well as intervention of the law enforcement and anti-graft agencies. Ranking the fraud types according to their value, Appendix II (A) shows that miscellaneous (and other types of) fraud ranked first at N.47 billion (89.98 per cent), while computer/web/web fraud ranked second at N628.8 million (4.93 per cent) of the total amount involved in fraud and forgery, during the review period. Further analysis shows that fraudulent withdrawals ranked third at N9.22 million (.5 per cent), while fraudulent ATM withdrawals ranked fourth at N67.69 million (.32 per cent). Appendix II (B) further provides a graphical illustration of the amount that was reported to be involved in cases of frauds and forgeries during the period under review. Further analysis of the returns revealed that computer/web fraud accounted for N64.3 million (34.27 per cent) of the total amount that was actually lost to fraudulent activities, while fraudulent withdrawals and fraudulent ATM withdrawals accounted for N8.8 million (22.54 per cent) and N4.5 million (8.45 per cent) respectively. Appendix II (C) shows the amount that was actually 6

17 lost to fraud and forgery activities in the second quarter of 24, while Appendix II (D) shows graphical comparison of the amount involved in fraud and the actual amount lost to fraud during the period. The Channels, the Instruments and the Personalities involved in perpetrating Fraud During the review period, the various types of channels that were used to perpetrate fraud are: Web, ATM, bank branch, mobile payments, PoS, van and agent; while cash, cheques, cards and slips were the instruments used by fraudsters to commit fraud. Analysing the banks returns by the amount involved, the channel that was mostly used to perpetrate fraud was bank branch, which surged to N.89 billion from N.45 billion that was recorded in the preceding quarter, representing an alarming increase of per cent. Following this was the Web, which fell significantly by 56.7 per cent to N628.8 million from N.43 billion in the previous quarter. Further analysis by the amount involved in fraud reveals that the instrument that was mostly used to perpetrate fraud was bank slip, which skyrocketed by a very alarming 4,369.4 per cent to N.24 billion from N.76 million in the preceding quarter. This was followed by card which, however, plummeted to N87.9 million from N.63 billion in the previous period, thus representing a significant decrease of 5.34 per cent. Details of the channels and instruments that were used in perpetrating fraud are illustrated graphically in Appendices III IV. The returns also reveal data on banks employees that were either dismissed or had their appointments terminated as a result of fraud related activities. This index increased by 8.22 per cent to 79 banks staff, from 73 banks employees whose appointments were terminated on similar grounds in the preceding quarter. This action demonstrates banks zero tolerance for employees involvement in fraudulent practices. Conclusion and Recommendations Analysis of the banks returns on fraud reveal that most of the parameters that were used to assess fraud and forgery in the banking industry reduced considerably in the second quarter of 24, except for the amount involved in fraud which surged during the period. For instance, the total amount that was lost to fraud fell considerably to N million from N.28 billion that was reported in the first quarter, thus representing a decrease of per cent. Similarly, the total number of reported fraud cases in the banking industry plummeted by. per cent to 2,66 from 2,957 that was reported in the preceding quarter. However, it is alarming to observe that the total amount that was reported to be involved in fraud rose significantly by 3.55 per cent to N2.75 billion from N3. billion in the previous quarter. It is also remarkable to observe that the amount that was reported to be involved in electronic fraud 5 dropped to N88.27 million from N.63 billion in the previous 7

18 quarter, decreasing by 5.32 per cent. Similarly, the actual amount that was lost to electronic fraud plunged by per cent to N2.92 million, down from N million in the previous quarter. The observed surge in the amount involved in fraud is quite worrisome, and brings to the fore, the need for the banking industry to adopt a multi-stakeholders approach to tackling fraud incidence in the industry. Banks must continually enhance their control processes and security measures; for emphasis, it is very imperative for banks to ensure that proper due diligence is carried out on potential employees before they are formally engaged. Thus, the directive of the Central Bank of Nigeria that deposit money banks and discount houses seek its approval before recruiting new employees will help to mitigate the incidence of fraud in the industry. In addition, banks must be persuaded to regularly make use of available structures and processes to ensure that only fit and proper persons are recruited and retained in the industry, as well as evolve efficient ways of tracking their previous employees to discourage them from becoming subsequent threats to the industry. (Please see the appendices below for summaries of the cases of frauds and forgeries covered in this report, with comparisons between the first quarter of 23, first and second quarters of 24 on selected concerns.) Notes: Note : Commercial, merchant and non-interest banks. Note 2 : Volume of fraud and forgery. Note 3 : Miscellaneous fraud include unauthorised debit, fraudulent diversions of customers fund for personal use, fraudulent debit of customers accounts, fraudulent debit of inter-branch suspense accounts, conversion of dividend warrants, dry postings, diversion of deposits, and misappropriation of funds etc. Note 4 : Value of fraud and forgery. Note 5 : Consisting of computer/web fraud, PoS fraud, mobile payment fraud, and ATM fraud. 8

19 Amount Involved Amount Lost Amount (N) Appendix I (A) Frauds and Forgeries in the Nigerian Banking Industry: A Comparison between First and Second Quarters, 24 S/N Variables First Quarter, 24 Second Quarter, 24 Total Cases reported 2 Total Amount Involved 3 Total Amount Lost 4 Outsider Involvement 2,957 2,66 N3,5,755,48.4 N,276,529,762. N2,75,672,6.44 N479,45, , Insider (Staff) Involvement Appointments Terminated Appendix I (B) 4,,,. Frauds and Forgeries in the Nigerian Banking Industry: A Comparison between First and Second Quarters, 24 2,,,. First Quarter 24 Second Quarter 24,,,. 8,,,. 6,,,. 4,,,. 2,,,. - Quarters 9

20 Total Cases Involved Outsider Involvement Insider (staff) Involvement Appointments Terminated Appendix I (C) 3,5 3, 2,5 2,,5, 5 Frauds and Forgeries in the Nigerian Banking Industry: A Comparison between First and Second Quarters, 24 First Quarter 24 Second Quarter 24 Quarters Appendix I (D) Frauds and Forgeries in the Nigerian Banking Industry: A Comparison between Second Quarter, 23 and Second Quarter, 24 S/N Variables Second Quarter, 23 Second Quarter, 24 Total Cases Involved 2,76 2,66 2 Total Amount Involved N8,577,64,74.38 N2,75,672, Total Amount Lost N97,773, N479,45, Outsider Involvement 2,6 2,52 5 Insider (Staff) Involvement 6 Appointments Terminated

21 Amount Involved Amount Lost Amount (N) Total Cases Involved Outsider Involvement Insider (staff) Involvement Appointments Terminated Appendix I (E) Frauds and Forgeries in the Nigerian Banking Industry: A Comparison between Second Quarter, 23 and Second Quarter, 24 3, 2,5 2, Second Quarter 23 Second Quarter 24,5, 5 Quarters Appendix I (F) Frauds and Forgeries in the Nigerian Banking Industry: A Comparison between Second Quarter, 23 and Second Quarter, 24 4,,,. 2,,,.,,,. Second Quarter 23 Second Quarter 24 8,,,. 6,,,. 4,,,. 2,,,.. Quarters 2

22 Appendix II (A): Frauds and Forgeries in the Nigerian Banking Industry (Second Quarter, 24) Types of Fraud Total Number of Cases Reported Involving Bank Staff Only Involving Outside Persons Only Collusion Not Specified Amount Involved (N) Actual /Expected Loss (N) Expected Loss/ Amount Involved (% ) Tellering Fraud (.38) (7.52) () () () 3,87,94. (.3),39,. (.24) 29.8 Falsification Of Accounts: Current/Cheque, Savings/Deposits, Suspense Accounts () () () () () () () Forged Cheques with Forged Signature 36 (.35) 3 (2.26) 3 (.9) 3 (37.5) () 8,558,624.8 (.5) 2,267,5. (.47) 2.2 Printing Of Bank Document Illegally () () () () () () () Clearing Fraud 7 (.26) () 7 (.28) () (),2,. (.9),426,5. (.3) 2.7 Computer/Web Fraud 4 (5.3) 4 (3.) 396 (5.7) () () 628,82,69.47 (4.93) 64,297,86.43 (34.27) 26.2 Mobile Fraud 4 (.5) () 4 (.6) () () 8,739,2. (.7) 4,445,2. (.93) 5.9 Foreign Exchange Fraud 6 (.23) 2 (.5) 4 (.6) () () 25,744,33.2 (.2) 3,74,224. (2.86) 53.2 Cross Firing Of Cheques and Kite Flying () () () () () () () Note: All figures in parenthesis ( ) indicate percentages 22

23 Appendix II (A) Cont d: Frauds and Forgeries in the Nigerian Banking Industry (Second Quarter, 24) Types of Fraud Total Number Of Cases Reported Involving Bank Staff Only Involving Outside Persons Only Collusion Not Specified Amount Involved (N) Actual /Expected Loss (N) Expected Loss/ Amount Involved (% ) Theft of Cash 9 (.7) 8 (3.53) (.4) () () 39,57,2. (.3) 37,886,295. (7.9) 95.9 Suppression of Entries: Cash/Cheques Opening and Operating Fraudulent Loans and Accounts Over-Invoicing of Service to the Bank 53 (.99) 46 (.73) (.4) Robberies (Armed) 7 (.26) Fictitious Bank Branches Miscellaneous and Other Types of Fraud Fraudulent Withdrawals () 64 (2.4) 66 (2.48) ATM Withdrawals,926 (72.38) PoS Fraud 6 (.6) 52 (39.) () (.75) () () 24 (8.5) 7 (2.78) 2 (.5) () (.4) 46 (.83) () 7 (.28) () 37 (.47) 47 (.87),924 (76.35) 6 (.63) () () () () () 3 (37.5) 2 (25.) () () () () () () () () () () () 83,56,39. (.66) 57,3,6.5 (.45) 8,4. () 37,835,743.5 (.3) (),473,639, (89.98) 9,28,. (.5) 67,693,93.4 (.32) 3,755,2.74 (.3) 6,336,5. (3.4) 8,764,. (.83),6. () 37,835,743.5 (7.89) () 4,92, (8.36) 8,8,5. (22.54) 4,5,63.94 (8.45) 2,662, (.56) Total 2, ,52 8 2,75,672, ,45, Note: All figures in parenthesis ( ) indicate percentages

24 Tellering fraud Falsification of Account: Forged cheques with forged printing of bank document Clearing Fraud Computer/Web Fraud Telex fraud Foreign Exchange Fraud Cross Firing of cheques & Kite Theft of cash Suppression of Entries: Opening and Operating Over-invoincing of service to Robberies (Armed) fictitious bank branches Miscellaneous and other Types Fraudulent Withdrawals ATM Withdrawals PoS Fraud Percentages Tellering fraud Falsification of Account: Forged cheques with forged printing of bank document Clearing Fraud Computer/Web Fraud Telex fraud Foreign Exchange Fraud Cross Firing of cheques & Kite Theft of cash Suppression of Entries: Opening and Operating Over-invoincing of service to Robberies (Armed) fictitious bank branches Miscellaneous and other Fraudulent Withdrawals ATM Withdrawals PoS Fraud Percentages Appendix II (B) Percentage Distribution of Amount Involved in Frauds and Forgeries (Second Quarter, 24) Amount Involved Types of Fraud Appendix II (C) Percentage Distribution of Amount Lost to Frauds and Forgeries (Second Quarter, 24) Amount Lost Types of Fraud

25 Tellering fraud Falsification of Account: Forged cheques with forged printing of bank document Clearing Fraud Computer/Web Fraud Telex fraud Foreign Exchange Fraud Cross Firing of cheques & Theft of cash Suppression of Entries: Opening and Operating Over-invoincing of service to Robberies (Armed) fictitious bank branches Miscellaneous and other Fraudulent Withdrawals ATM Withdrawals PoS Fraud Percentages Appendix II (D) Percentage Distribution of Amount Involved in and the Amount Lost to Frauds and Forgeries (Second Quarter, 24) Amount Lost Amount Involved. Types of Fraud Appendix III (A) Fraud and Forgeries through various Payment Channels: A Comparison between First and Second Quarters, 24 S/N Channels Cases: First Quarter, 24 Cases: Second Quarter, 24 Web ATM 2,7,92 3 Bank Branch Mobile 4 5 POS Van 7 Agent 9 3 Total 2,957 2,66 25

26 Web ATM Bank Branch Mobile PoS Van Agent Amount (N) Appendix III (B) Amount Involved and Amount Lost to Fraud through various Payment Channels: A Comparison (First and Second Quarters, 24) S/N Channel Amount Involved, First Quarter, 24 (N) Amount Involved, Second Quarter, 24 (N) Amount Lost, First Quarter, 24 (N) Amount Lost, Second Quarter, 24 (N) Web,432,947, ,82, ,23, ,297, ATM 69,936, ,75, ,74, ,55, Bank Branch,448,62,89.5,89,879, ,644, ,827, Mobile,65, 8,739,2.,65, 4,445,2. 5 POS 22,264,8.26 8,733, ,264,8.26 7,7, Van. 4,576, ,576, Agent 3,354, ,945, ,3,724. Total 3,5,755,48.4 2,75,672,6.44,276,529, ,45,89.32 Appendix III (C) 4,,,. Amount Involved and Amount Lost to Fraud through various Payment Channels: A Comparison (First and Second Quarters, 24) 2,,,.,,,. 8,,,. Amount Involved, First Quarter, 24 Amount Involved, Second Quarter, 24 Amount Lost, First Quarter, 24 Amount Lost, Second Quarter, 24 6,,,. 4,,,. 2,,,.. Channels 26

27 Appendix IV (A) Frauds and Forgeries through various Instruments: A Comparison between First and Second Quarters, 24 S/N Instruments Cases: First Quarter, 24 Cases: Second Quarter, 24 Cash Cheques Cards 2,659 2,345 4 Slips 7 3 Total 2,957 2,66 Appendix IV (B) Amount Involved and Amount Lost to Fraud through various Instruments of Transaction: A Comparison (First and Second Quarters, 24) S/N Instruments Amount Involved, First Quarter, 24 (N) Amount Involved, Second Quarter, 24 (N) Amount Lost, First Quarter, 24 (N) Amount Lost, Second Quarter, 24 (N) Cash,37,978, ,534, ,472, ,52, Cheques 96,26, ,759, ,863, ,694,. 3 Cards,626,798, ,9, ,885, ,95, Slips,762,45.,243,466, ,39,8. 3,39,9. Total 3,5,755,48.4 2,75,672,6.44,276,529, ,45,

28 Cash Cheques Cards Slips Amount (N) Appendix IV (C) Amount Involved and Amount Lost to Fraud through various Instruments of Transaction: A Comparison (First ans Second Quarters, 24) 2,,,.,,,. 8,,,. 6,,,. Amount Involved, First Quarter, 24 Amount Involved, Second Quarter, 24 Amount Lost, First Quarter, 24 Amount Lost, Second Quarter, 24 4,,,. 2,,,.. Instruments 28

29 Report on Frauds and Forgeries in Banks July - September, 24 29

30 Report on Frauds and Forgeries in the Nigerian Banking Industry for the Period July - September, 24 Overview During the second quarter of 24, FITC received 64 returns from 22 deposit money banks on incidence of fraud and forgery that occurred in their respective institutions during the period. Of these returns, 22 were received for the month of July and 2 each were received for the months of August and September. Volume and Value of Fraud Cases Analysis of the returns shows that a total of 2,844 cases 2 (volume) of frauds and forgeries were reported in the banking industry during the period (July - September, 24), compared to 2,66 cases reported in the preceding quarter, thus representing an increase of 6.88 per cent. The types of fraud that were reported to be predominant during the review period include: fraudulent ATM withdrawals, computer/web fraud, PoS fraud, opening/operating fraudulent accounts, fraudulent withdrawals, miscellaneous 3 (other types of) fraud, suppression of entries, and forged cheque with forged signature. Appendices I and II contain details of the fraud incidence that occurred during the review period with graphical illustrations. During the period, the total amount 4 (value) of money that was reported to be involved in fraud cases plunged to N7.48 billion from N2.75 billion in the previous quarter, indicating a significant 4.33 per cent decrease. Of the total amount (N7.48 billion) involved in fraud, N.25 billion (6.76 per cent) was actually lost to fraud in the banking industry; the difference of N6.23 billion (83.24 per cent) of the total amount involved in fraud was recovered through the collective efforts of banks internal and external control techniques: i.e. internal procedural checks and investigation processes, as well as intervention of the law enforcement and anti-graft agencies. Ranking the fraud types according to their value, Appendix II (A) shows that clearing fraud ranked first at N3.25 billion (43.5 per cent), while computer/web fraud ranked second at N2.6 billion (27.48 per cent) of the total amount involved in fraud and forgery during the review period. Further analysis reveals that miscellaneous 3 (other types of) fraud ranked third at N.49 billion (9.94 per cent), while fraudulent ATM withdrawals ranked fourth at N64.3 million (2.9 per cent). Appendix II (B) further provides a graphical illustration of the amount that was reported to be involved in fraud and forgery cases during the period under review. Further analysis of the returns reveals that computer/web fraud accounted for N million (69.3 per cent) of the total amount that was actually lost to fraud during the quarter, while miscellaneous 3 (other types of) fraud and armed robbery accounted for N33.29 million (.63 per cent) and N8.9 million (6.53 per cent) 3

31 respectively. Appendix II (C) shows the amount that was actually lost to fraud and forgery activities in the third quarter of 24, while Appendix II (D) shows graphical comparison of the amount involved in fraud and the actual amount lost to fraud during the period. The Channels, Instruments and Personalities involved in perpetrating Fraud During the review period, various types of channels were used to perpetrate fraud; they include: Web, ATM, bank branch, mobile payments, PoS, van and agent. Meanwhile, cash, cheques, cards and slips were the instruments used by fraudsters to commit fraud during the period. Analysing the banks returns by the amount involved, the channel that was mostly used to perpetrate fraud was the Web, which increased significantly to N2.6 billion from N628.8 million recorded in the preceding quarter, representing an upsurge of per cent. Also, fraud through PoS and mobile channels increased by per cent and 4.89 per cent, rising to N56.27 million from N8.73 million and to N7.9 million from N8.74 million respectively. Further analysis by the amount involved in fraud reveals that the instrument that was mostly used to perpetrate fraud during the quarter was cheque, which snowballed by an alarming,92.5 per cent to N3.33 billion from N29.76 million in the preceding quarter. This was followed by card which also increased significantly to N2.29 billion from N87.9 million in the previous period, thus representing a per cent rise. Details of the channels and instruments that were used in perpetrating fraud are illustrated graphically in Appendices III IV. The banks returns also revealed information on banks employees that were either dismissed, or had their appointments terminated as a result of involvement in fraud related activities. The banks reported that 66 bank employees appointment were terminated on fraud related activities; this indicates 6.46 per cent decrease from 79 employees whose appointments were terminated in the preceding quarter. The reduction in the number of appointments terminated on fraud related reasons indicates banks increasing low tolerance for employees involvement in fraud, and that this is being communicated effectively to staff by such terminations. Conclusion and Recommendations Analyses of the banks returns on fraud reveal that most of the parameters that were used to assess fraud and forgery in the banking industry during the third quarter indicated mixed performance, as some increased while others declined. For instance, the total amount that was lost to fraud soared to N.25 billion up from N million that was reported in the second quarter, thus representing an increase of 6.53 per cent. Similarly, the total number of reported fraud cases in the banking industry rose by 6.88 per cent to 2,844 from 2,66 that was reported in the preceding quarter. However, the total amount that was reported to be involved in fraud plummeted significantly by 4.33 per cent to N7.48 billion from N2.75 billion in the previous quarter. 3

32 While the reduction in the total amount reported to be involved in fraud during the quarter is encouraging, it is worrisome to observe that the actual amount lost to fraud increased. In a similar vein, it is very worrisome to observe that the amount that was reported to be involved in electronic fraud 5 surged to N2.29 billion from N88.27 million in the previous quarter, increasing by per cent. Similarly, the actual amount that was lost to electronic fraud rose significantly by per cent to N924.5 million, up from N2.92 million in the previous quarter. The observed increase in some of the parameters used in analysing fraud in the industry is instructive. For instance, clearing fraud which has been in the decline in previous quarters ranked first in the period under review. Also, armed robbery incidence recorded per cent loss; these indicate that all types of channels and instruments of perpetrating fraud are important, and stakeholders need closer and firmer collaborations to ensure that all the possible avenues of perpetrating fraud are plugged, as fraudsters will continually seek the weakest point to perpetrate their criminal activities. It is, therefore very important that all stakeholders in the industry make committed efforts to help reduce the incidence of fraudulent activities. Banks must ensure that REGULAR Know Your Customer (KYC) checks are carried out on their customers, and ensure that security measures are beefedup to discourage fraudulent attempts via electronic channels of banking transactions. The industry should come up with initiatives and strategies to preempt fraud; because the best defence against fraudsters is to attack them first and make fraud an unprofitable business to venture into. With increasingly more competitive environment, fraud losses must be mitigated. (Please see the appendices below for summaries of the cases of frauds and forgeries covered in this report, with comparisons between the third quarter of 23, second and third quarters of 24 on selected concerns.) Notes: Note : Commercial, merchant and non-interest banks. Note 2 : Volume of fraud and forgery. Note 3 : Miscellaneous fraud include unauthorised debit, fraudulent diversions of customers fund for personal use, fraudulent debit of customers accounts, fraudulent debit of inter-branch suspense accounts, conversion of dividend warrants, dry postings, and misappropriation of funds etc. Note 4 : Value of fraud and forgery. Note 5 : Consisting of computer/web fraud, PoS fraud, mobile payment fraud, and ATM fraud. 32

33 Amount Involved Amount Lost Amount (N) Appendix I (A) Frauds and Forgeries in the Nigerian Banking Industry: A Comparison between Second and Third Quarters, 24 S/N Variables Second Quarter, 24 Third Quarter, 24 Total Cases reported 2,66 2,844 2 Total Amount Involved N2,75,672,6.44 N7,48,38, Total Amount Lost N479,45,89.32 N,253,93, Outsider Involvement 252 2, Insider (Staff) Involvement 33 8 Appointments Terminated Appendix I (B) 4,,,. Frauds and Forgeries in the Nigerian Banking Industry: A Comparison between Second and Third Quarters, 24 2,,,.,,,. Second Quarter 24 Third Quarter 24 8,,,. 6,,,. 4,,,. 2,,,.. Quarters 33

34 Total Cases Involved Outsider Involvement Insider (staff) Involvement Appointments Terminated Appendix I (C) Frauds and Forgeries in the Nigerian Banking Industry: A Comparison between Second and Third Quarters, 24 3, 2,5 Second Quarter 24 Third Quarter 24 2,,5, 5 Quarters Appendix I (D) Frauds and Forgeries in the Nigerian Banking Industry: A Comparison between Third Quarter, 23 and Third Quarter, 24 S/N Variables Third Quarter, 23 Third Quarter, 24 Total Cases Involved 2,97 2,844 2 Total Amount Involved N,69,976,562.2 N7,48,38, Total Amount Lost N794,8, N,253,93, Outsider Involvement 2,67 2, Insider (Staff) Involvement 25 8 Appointments Terminated

35 Amount Involved Amount Lost Amount (N) Total Cases Involved Outsider Involvement Insider (staff) Involvement Appointments Terminated Appendix I (E) Frauds and Forgeries in the Nigerian Banking Industry: A Comparison between Third Quarter, 23 and Third Quarter, 24 3, 2,5 Third Quarter 23 Third Quarter 24 2,,5, 5 - Quarters Appendix I (F) Frauds and Forgeries in the Nigerian Banking Industry: A Comparison between Third Quarter, 23 and Third Quarter, 24 4,,,. 2,,,.,,,. Third Quarter 23 Third Quarter 24 8,,,. 6,,,. 4,,,. 2,,,. - Quarters 35

36 Appendix II (A): Frauds and Forgeries in the Nigerian Banking Industry (Third Quarter, 24) Types of Fraud Total Number of Cases Reported Involving Bank Staff Only Involving Outside Persons Only Collusion Not Specified Amount Involved (N) Actual /Expected Loss (N) Expected Loss/ Amount Involved (% ) Tellering Fraud 6 (.2) 6 (5.56) () () () 6,69,9. (.9) 6,526,69. (.52) 97.5 Falsification Of Accounts: Current/Cheque, Savings/Deposits, Suspense Accounts () () () () () () () Forged Cheques with Forged Signature 52 (.83) () 5 (.87) (25.) () 7,548,65.5 (.94) 5,747,453.5 (.46) 8. Printing Of Bank Document Illegally () () () () () () () Clearing Fraud 9 (.32) () 9 (.33) () () 3,253,77,74.75 (43.5) 2,8,678.5 (.2).4 Computer/Web Fraud 563 (9.8) 5 (4.63) 556 (2.36) (25.) () 2,55,5, (27.48) 868,98,34. (69.3) 42.3 Mobile Fraud 4 (.4) () 4 (.5) () () 7,95,32.32 (.24) 2,77,2. (.22) 5. Foreign Exchange Fraud 2 (.7) (.93) (.4) () () 25,. (.) () Cross Firing Of Cheques and Kite Flying () () () () () () () Note: All figures in parenthesis ( ) indicate percentages 36

37 Appendix II (A) Cont d: Frauds and Forgeries in the Nigerian Banking Industry (Third Quarter, 24) Types of Fraud Total Number Of Cases Reported Involving Bank Staff Only Involving Outside Persons Only Collusion Not Specified Amount Involved (N) Actual /Expected Loss (N) Expected Loss/ Amount Involved (% ) Theft of Cash 2 (.42) (9.26) 2 (.7) () () 9,999,585. (.3) 4,792,985. (.38) 47.9 Suppression of Entries: Cash/Cheques Opening and Operating Fraudulent Loans and Accounts Over-Invoicing of Service to the Bank 52 (.83) (3.52) () Robberies (Armed) 6 (.2) Fictitious Bank Branches Miscellaneous and Other Types of Fraud Fraudulent Withdrawals () 73 (2.57) 64 (2.25) ATM Withdrawals,787 (62.83) PoS Fraud 4 (4.) 5 (47.22) 2 (.85) () () () 7 (5.74) 4 (2.96) 2 (.85) () (.4) 97 (3.55) () 6 (.22) () 56 (2.5) 49 (.79),785 (65.36) 4 (4.7) () (25.) () () () () (25.) () () () () () () () () () () () 8,75, (.45) 78,82,33.75 (.5) () 8,95,565. (.9) (),49,29,338.9 (9.94) 85,353,946.4 (.4) 64,3, (2.9) 56,269,936.3 (.75) 35,7, (2.79) 7,7,48.43 (.56) () 8,95,565. (6.53) () 33,294,87.6 (.63) 42,32,54.24 (3.37) 5,92, (4.8),628,45.2 (.3) Total 2, ,73 4 7,48,38,5.59,253,93, Note: All figures in parenthesis ( ) indicate percentages

38 Tellering fraud Falsification of Account: Forged cheques with forged printing of bank document Clearing Fraud Computer/Web Fraud Telex fraud Foreign Exchange Fraud Cross Firing of cheques & Kite Theft of cash Suppression of Entries: Opening and Operating Over-invoincing of service to the Robberies (Armed) fictitious bank branches Miscellaneous and other Types Fraudulent Withdrawals ATM Withdrawals PoS Fraud Percentages Tellering fraud Falsification of Account: Forged cheques with forged printing of bank document Clearing Fraud Computer/Web Fraud Telex fraud Foreign Exchange Fraud Cross Firing of cheques & Kite flying Theft of cash Suppression of Entries: Opening and Operating Over-invoincing of service to the Robberies (Armed) fictitious bank branches Miscellaneous and other Types of Fraudulent Withdrawals ATM Withdrawals PoS Fraud Percentages Appendix II (B) Percentage Distribution of Amount Involved in Frauds and Forgeries (Third Quarter, 24) Amount Involved Types of Fraud Appendix II (C) Percentage Distribution of Amount Lost to Frauds and Forgeries (Third Quarter, 24) Amount Lost Types of Fraud

39 Tellering fraud Falsification of Account: Forged cheques with printing of bank document Clearing Fraud Computer/Web Fraud Telex fraud Foreign Exchange Fraud Cross Firing of cheques & Theft of cash Suppression of Entries: Opening and Operating Over-invoincing of service Robberies (Armed) fictitious bank branches Miscellaneous and other Fraudulent Withdrawals ATM Withdrawals PoS Fraud Percentages Appendix II (D) Percentage Distribution of Amount Involved in and the Amount Lost to Frauds and Forgeries (Third Quarter, 24) Amount Involved Amount Lost Types of Fraud Appendix III (A) Fraud and Forgeries through various Payment Channels: A Comparison between Second and Third Quarters, 24 S/N Channels Cases: Second Quarter, 24 Cases: Third Quarter, 24 Web ATM,92,787 3 Bank Branch Mobile POS Van 7 Agent 3 Total 2,66 2,844 39

40 Web ATM Bank Branch Mobile PoS Van Agent Amount (N) Appendix III (B) Amount Involved and Amount Lost to Fraud through various Payment Channels: A Comparison (Second and Third Quarters, 24) S/N Channel Amount Involved, Second Quarter, 24 (N) Amount Involved, Third Quarter, 24 (N) Amount Lost, Second Quarter, 24 (N) Amount Lost, Third Quarter, 24 (N) Web 628,82, ,55,5, ,297, ,98,34. 2 ATM 62,75, ,3, ,55, ,92, Bank Branch,89,879,6.3,868,24, ,827, ,94,3.3 4 Mobile 8,739,2. 7,95, ,445,2. 2,77,2. 5 POS 8,733, ,269, ,7,283.97,628, Van 4,576, ,5,. 4,576, ,5,. 7 Agent 36,945,33.2 3,253,796, ,3,724. 2,8,678.5 Total 2,75,672,6.44 7,48,38, ,45,89.32,253,93,33.87 Appendix III (C) Amount Involved and Amount Lost to Fraud through various Payment Channels: A Comparison (Second and Third Quarters, 24) 4,,,. 2,,,.,,,. 8,,,. Amount Involved, Second Quarter, 24 Amount Involved,Third Quarter, 24 Amount Lost, Second Quarter, 24 Amount Lost, Third Quarter, 24 6,,,. 4,,,. 2,,,.. Channels 4

41 Appendix IV (A) Frauds and Forgeries through various Instruments: A Comparison between Second and Third Quarters, 24 S/N Instruments Cases: Second Quarter, 24 Cases: Third Quarter, 24 Cash Cheques Cards 2, Slips 3 26 Total 2,66 2,844 Appendix IV (B) Amount Involved and Amount Lost to Fraud through various Instruments of Transaction: A Comparison (Second and Third Quarters, 24) S/N Instruments Amount Involved, Second Quarter, 24 (N) Amount Involved, Third Quarter, 24 (N) Amount Lost, Second Quarter, 24 (N) Amount Lost, Third Quarter, 24 (N) Cash 669,534,674.86,836,88,25. 26,52, Cheques 29,759, ,33,846,57. 3,694, Cards 87,9,23.6 2,293,87, ,95, Slips,243,466, ,466,66 3,39, Total 2,75,672,6.44 7,48,38, ,45,89.32,253,93,

42 Cash Cheques Cards Slips Amount (N) Appendix IV (C) Amount Involved and Amount Lost to Fraud through various Instruments of Transaction: A Comparison (Second and Third Quarters, 24) 2,,,.,,,. 8,,,. 6,,,. Amount Involved, Second Quarter, 24 Amount Involved, Third Quarter, 24 Amount Lost, Second Quarter, 24 Amount Lost, Third Quarter, 24 4,,,. 2,,,.. Instruments 42

43 Report on Frauds and Forgeries in Banks October - December, 24 43

44 Report on Frauds and Forgeries in the Nigerian Banking Industry for the Period October - December, 24 Overview During the fourth quarter of 24, FITC received 63 returns from 2 deposit money banks on incidence of frauds and forgeries that occurred in their institutions during the period. Of these returns, 2 were received for each of the months of October, November and December. Volume and Value of Fraud Cases Analysis of the returns shows that a total of 4,79 cases 2 of frauds and forgeries (volume) were reported in the banking industry during the period October to December, 24. Comparing this number to the 2,844 cases that was reported in the preceding quarter, there was an increase of per cent in the reported cases of fraud in the banking industry. The types of fraud that were reported to be predominant during the review period include fraudulent ATM withdrawals, computer/web fraud, miscellaneous 3 fraud, opening/operating fraudulent accounts, fraudulent withdrawals, suppression of entries, and PoS fraud. Appendices I and II contain details of the fraud incidence that occurred during the review period with graphical illustrations. During the period, the total amount 4 of money (value) that was reported as being involved in fraud cases plummeted to N4.57 billion from N7.48 billion in the previous quarter, indicating a significant per cent decrease. Of the total amount (i.e. N4.57 billion) involved in fraud, N.6 billion (approximately 35.3 per cent) was actually lost to fraud in the banking industry. The difference of N2.96 billion (64.69 per cent) of the total amount involved in fraud was recovered through the combined efforts of banks internal control systems and external control from relevant agencies of the government (i.e. intervention of the law enforcement and anti-graft agencies. Ranking the fraud types according to their value, Appendix II (A) shows that computer/web fraud ranked first at N.54 billion (33.77 per cent), while miscellaneous (other types of) fraud ranked second at N.35 billion (29.43 per cent) of the total amount involved in fraud and forgery during the review period, and fraudulent ATM withdrawals ranked third at N.25 billion (27.28 per cent). Appendix II (B) further provides a graphical illustration of the amount that was reported to be involved in fraud and forgery cases during the period under review. Further analysis of the returns reveals that fraudulent ATM withdrawals accounted for N984.3 million (6.95 per cent) of the total amount that was actually lost to fraud during the quarter, while computer/web fraud accounted for N26.72 million (6.5 per cent), and miscellaneous (other types of) fraud accounted for N46.73 million (9.9 per cent). Appendix II (C) shows the amount that was actually lost to fraud and forgery activities in the fourth quarter of 24, 44