Over the past five years, Nigeria’s financial landscape has witnessed an increase in fraudulent incidents, mirroring the rapid expansion of digital payment transactions. The annual fraud count surged by 112%, from 44,947 cases in 2019 to 95,620 in 2023, with corresponding financial losses skyrocketing by 496% from N2.9 billion to N17.67 billion during the same period. Additionally, the ratio of total reported fraud cases to the total value of transactions has shown a slight increase from 0.0019% in 2019 to 0.0022% in 2023, highlighting the escalating challenge of combating fraud in the ever evolving digital economy.
According to the Nigeria Inter-Bank Settlement System (NIBSS) 2023 Annual Fraud Landscape report, it was revealed that there is a concerning trend in international fraud activities targeted at Nigerian banks’ customers.
The geographic distribution and intensity of fraud in 2023, reinforces the urgent need for increased security and vigilance on a worldwide scale. Customers and banking institutions alike need to place a high priority on proactive and all-encompassing fraud detection and prevention techniques since fraudsters are always evolving and expanding their horizons.
Here are the top ten foreign nations in which Nigerian banks’ customers were defrauded in 2023
United states
There was a significant drop in fraud cases from 3939 in 2022 to 486 in 2023, yet the United States was the most affected country with total losses amounting to N79.9 million from N95.83 million from the previous year. Despite a reduction of over 87% in fraud cases, the total amount lost only decreased by over 16% showing a shift towards fewer but more high value targets.
Ireland
Fraud cases in Ireland increased from 68 in 2022 to 109 in 2023. The financial losses multiplied by nearly tenfold to N15.5 million from N1.66 million. This stark increase highlights the escalation of fraud frequency in Ireland.
United Kingdom
The United Kingdom, just like the United States, also experienced a decrease in fraud cases in 2023. Cases reported came down from 172 in 2022 to 81 in 2023. The total amount lost increased to N10.8 million from N5.11 million. This trend shows a reduction in number of cases, but more severe fraud cases.
Singapore
There were only four fraud cases in 2023, but these four cases led to a loss of N2.4 million, highlighting the sophistication of the type of fraud that took place in Singapore.
Switzerland
Despite having only one case in 2023, this case brought about a loss of N2 million. The high value of this case shows it was a very sophisticated operation targeted at individuals with high net worth.
United Arab Emirates (UAE)
The UAE reported five fraud cases leading to a total loss of N1.9 million, reflecting the impact of fraudulent activities in the region targeted at Nigerian customers.
Canada
Canada experienced a decrease in fraud cases from 35 in 2022 to 13 in 2023, but saw an increase in financial losses, up from N1.25 million in 2022 to N1.8 million in 2023. This shows the severity of each case.
Netherlands
The Netherlands had nine cases in 2023 costing a total of N1.4 million. This highlights the prevalence of fraudulent activities in the country.
Luxembourg
Luxembourg recorded ten fraud cases with a total financial loss of N1.4 million, indicating the presence of fraudulent activities within its borders.
Kenya
Despite just four cases, Kenya incurred losses amounting to N0.76 million, emphasizing the need for vigilance against fraud despite relatively low numbers.
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