• Monday, May 27, 2024
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Electronic fraud in banking projected to reach N6.1trn by 2021 says CBN 


Electronic fraud loses in the Nigerian banking system are projected to reach N6.1 trillion by 2021 according to the Central Bank of Nigeria (CBN).
The volume and value of e-transactions is projected to continue to increase nationally and globally as a result of broader ecosystem scope, evolution of channels, adaptability to disruptive Innovations/modes payment increased inclusion and evolving technologies.
The CBN through it Consumer Protection Department (CPD) has resolved over 13,715 complaints resulting in the refund of about N72.2 billion to customers by the deposit money banks.
The breakdown of the refund show that N66.5 billion, $18.5 million or N5.6 billion  converted using CBN’s official rate of N306, €26,319.03 or N10.43 million, and£9,085.98 or N3.13 million were refunded to customers in the country.

READ ALSO: Banks refund N72.2bn to customers after complaint resolution

This is coming as 25,043 cases of fraud were reported by deposit money banks in 2017 compared to 19,531 cases in 2016, representing a 28 percent increase in reported fraud cases in 2017
Even though there was a 24 percent reduction in actual fraud loss value in 2017 compared to 2016 figures, actual fraud loss value amounted to N1.63 billion in 2017.
The statistics provided by the CBN at the workshop show that there was a significant increase in the year-on-year volume and value of transactions across all payment channels in Nigeria.
Consequently, 1.4 billion transactions with a value of N97.4 trillion were processed in 2017 as against 869 million transactions with a value of N69.1 trillion recorded in 2016.
An increase of 59.7 percent and 40.9 percent were recorded respectively in the volume and value of transactions in 2017.
The CBN said on Wednesday that it will soon issue a framework on consumer protection.
Disclosing this in Benin at the ongoing workshop for finance correspondents and business editors organised by the Nigeria Deposit Insurance Scheme (NDIC), Salam-Alada S.K, director, consumer protection department, CPD co ducted a mapping exercise of financial literacy activities in Nigeria as one of the achievements of the department.
Other achievements were the biannual consumer protection compliance exams, review of the guide to bank charges (2004, 2013 and 2017) and conducting of baseline survey on financial literacy in the country.
Salam-Alada who was represented at the workshop suggested some way forward for regulatory intervention/collaboration to include, implementation of consumer protection framework, establishment of industry fraud desks and strengthening internal controls among others.


Hope Moses-Ashike and Onyinye Nwachukwu in  Benin