Banks sack 35 staff over fraud

Between January and March 2024, commercial banks in Nigeria dismissed 35 employees for their involvement in fraudulent activities, according to a report from the Financial Institutions Training Centre (FITC). This marks a 288% increase from the nine terminations recorded in Q4 2023.

Despite this rise in terminations, staff involvement in fraud declined by 12.96%, dropping from 54 cases in Q4 2023 to 47 in Q1 2024. However, outsider involvement in fraud saw a slight increase of 0.45%, with cases rising from 10,350 in Q4 2023 to 10,397 in Q1 2024.

The banks’ losses to financial fraud in the first quarter of 2024 fell by 77.62% compared to the previous quarter. The report noted a 7.52% decrease in the total number of fraud cases, with 11,472 cases reported in Q1 2024, down from 12,405 in Q4 2023.

FITC commended the decline in fraud activities and losses but emphasized the need for banks to enhance their vigilance and fraud control measures. The organization urged the adoption of advanced fraud detection technologies such as Artificial Intelligence (AI), Machine Learning (ML), Robotics Process Automation (RPA), Advanced Analytics, and Predictive Modelling to monitor transactions and detect suspicious patterns.

FITC also advised financial institutions to adhere to regulatory standards and incorporate ethical considerations and transparency in their decision-making processes while implementing these technologies.