By Dickson Pat
In the first quarter of 2024, Nigerian banks recorded a decline in fraud losses by 77.62% as a result of more reliance on artificial intelligence, data from the Financial Institutions Training Centre ,FITC, has revealed.
In the report analysed by Business Post, it was observed that only N468.42 million was lost to fraud and forgeries in the period under review as against the N2.09 billion recorded in the fourth quarter of 2023.
The report from FITC attributed this success to the use of emerging technologies like AI, Machine Learning ,ML, and Robotics Process Automation ,RPA, among others.
It, however, noted that the adoption of these emerging technologies by financial institutions must align with regulatory standards and ethical considerations.
According to the report, in Q1 of 2024, mobile fraud had the highest ranking of 25.73% , accounting for N768.84 million, followed by computer/web fraud at 22.78% with N680.75 million, and PoS fraud at 18.93% with N565.69 million.
FITC noted that staff involvement in fraud declined by 12.96% to 47 cases from 54 cases in the period under consideration, while the banks fired 35 staff appointments versus nine in the preceding quarter.
It further stated that in the first three months of this year, the Nigerian banking sector witnessed 11,472 fraud cases versus 12,405 cases in the last three months of last year, representing a decline of 7.52% .
“For Q1 2024, a total of 11,472 cases were reported compared with the 12,405 cases reported in Q4 2023, a 7.52% decrease.
“During Q1 2024, fraudulent activities were conducted through various channels, which included ATMs, online platforms such as web and mobile banking, bank branches, and point-of-sale ,PoS, terminals.
“In the first quarter of 2024, cards were the only instrument for fraud that recorded an increase, while the use of cheques and cash recorded relatively lower fraudulent activities when compared to the previous quarter.
“Specifically, there was a 31.12% rise in fraud cases through the PoS channel, rising from 2,683 cases in Q4 2023 to 3,518 cases in Q1 2024.
“Similarly, the number of fraud cases through the Mobile Channel increased by 0.45% rising from 3,173 cases in Q4 2023 to 3,393 cases in Q1 2024″, a part of the report stated.
