NDIC Reports 12,279 Fraud Cases In 2015

Godwin Emefiele, CBN Governor

A total of 12,279 fraud cases were reported by insured Nigerian banks in 2015, the Annual Report of the Nigeria Deposit Insurance Corporation has revealed.

This is as the report also disclosed that total loans and advances to the economy by the banks stood at N13.33 trillion in 2015, showing an increase of 5.56 per cent over the N12.63 trillion reported in 2014.

And in compliance with the Fiscal Responsibility Act (FRC), NDIC remitted N24,185,762,000 to the Consolidated Revenue Fund of the Federation in during the period under review as against N15.38 billion in the previous year.

The Corporation’s operating surplus for 2015 stood at N30.23 billion as against N15.52 billion in 2014, according to the report.

The 12,279 fraud cases represented an increase of 15.71 per cent over the 10,612 fraud cases reported in 2014 but the amount involved decreased significantly by N7.59 billion or 29.63 per cent from N25.608 billion in 2014 to N18.021 billion in 2015.

“Similarly, the actual loss suffered by the insured banks decreased by N3.02 billion or 48.79 per cent from N6.19 billion in 2014 to N3.17 billion in 2015.

“The actual loss sustained in respect of internet banking fraud was N857 million, representing 27 per cent of total actual loss of the industry. There was an increase in the frequency of ATM/Card-Related Fraud cases from 7,181 in 2014 to 8,039 in 2015, an increase of 11.95 per cent .

“However, the loss suffered by the industry due to such frauds declined significantly by 59.4 per cent from previous year figure of N1.242 billion to N0.504 billion, representing 15.9 per cent of total industry loss to frauds and forgeries.

“Out of the 12,279 fraud cases reported by the DMBs, 425 cases were attributed to staff. The number of fraud cases perpetrated by staff had decreased from 465 in 2014 to 425 in 2015. Similarly, losses arising therefrom substantially decreased by 70 per cent from N3.165 billion in 2014 to N0.979 billion in 2015. The highest percentage of frauds and forgeries cases of 38.59 per cent was perpetrated by temporary staff”, the report indicated.

Liquidity position of the banking industry was strong as its average liquidity ratio rose slightly from 53.65 per cent in 2014 to 58.18 per cent in 2015. All the individual DMBs had liquidity ratios above the prudential minimum threshold of 30 per cent as at 31st December, 2015.

Operating profitably, though earnings and profitability deteriorated, unaudited profit-before-tax (PBT) of the banks stood at N588.86 billion as at 31st December, 2015 representing a decrease of 2.02 per cent over N601.02 billion reported as at 31st December, 2014.