Banks record N5.8bn loss to fraudsters

B about 20 hours ago CRIMINALS' penetration into the banking sector operations is gradually slowing down, as the sector recorded a loss of N5.8 billion last year, compared to the preceding year’s figure, according to the Central Bank of Nigeria (CBN). The decline in the criminal activities at the nation’s money deposit banks came on the heels of report that the volume and value of cheque transactions nationwide increased by 11 per cent and 13 per cent respectively. The revelation was contained in the 2011 Financial Statement by the apex bank, obtained by The Guardian, in Abuja, yesterday. The development, according to the report, showded a decline from the preceding year’s record. On the banks’ fraud, the statement said in part: “The number of reported cases of attempted or crystalised fraud and/or forgery in the banking industry declined in 2011. There were 2,527 reported cases of attempted fraud or forgery, involving N29.5 billion, as against 5,960 cases involving N19.7 billion and $19.2 million in 2010. “Of this amount, the actual loss to the banks was N5.8 billion, compared with N11.4 billion and $10.98 million at end of December 2010. The reduction in actual loss was accounted for by improvements in risk management practices in the banking sector. “The fraud cases were perpetrated through various means, including pilfering and theft, suppression and conversion of customer deposits, illegal funds transfer and fraudulent ATM withdrawals, among others.”