Nigeria banks and fraud

The economic recession currently rocking the country has increased the volume of fraud cases in the banking industry , with the attendant loss of money , IFEANYI ONUBA writes
The banking sector recorded 31 , 736 fraud cases involving the sum of N16 . 5 bn between January 2014 and December 2016 , figures obtained by our correspondent from the Central Bank of Nigeria have revealed .
The fraud statistics are contained in the Nigerian Electronic Fraud Report, which was prepared by the Banking and Systems Payment Department of the CBN .
The frauds were perpetrated through various payment channels in the banking sector such as Across the Counter , Automated Teller Machines , cheques and electronic- commerce platforms .
Others are Internet banking , mobile banking , Point - of - Sale and web transactions .
The report stated that in the last three years , there had been more attempts in the number of fraud cases , adding that the development might be linked to the economic hardship being experienced in the country.
For instance , the report stated that the volume of fraud cases rose by 635 . 3 per cent from 1 , 461 incidents in 2014 to 10 , 743 in 2015 .
Between 2015 and 2016 , the report stated that the incidents of fraud rose by 81 . 8 per cent from 10 , 743 to 19 , 532 cases.
Cumulatively , the incidence of fraud rose by 1 , 236 per cent during the three- year period .
In monetary terms, an analysis of the report showed that while there had been an increase in fraud volume , the rate of increase could not be achieved financially .
For instance , the report stated that in 2014 , out of the total transaction value of N43 . 85 tn in the banking sector , about N7 . 75 bn was fraud - related .
However , it noted that while the transaction volume rose from N43 . 85 tn in 2014 to N48 . 93 tn in 2015 , the amount involved in fraud- related transactions declined by N3 . 38 bn or 43 . 6 per cent from N7 . 75 bn to N4 . 37 bn.
Between 2015 and 2016 , the report stated that while the value of financial transactions rose significantly from N48 . 93 tn to N64 . 18 tn , the amount of fraud involved during the period dropped marginally from N4 . 37 bn to N4 . 36 bn.
The report read in part, “ Although, values of the year 2016 are almost same with those of 2015 , the difference in its volume when compared to 2015 suggests more success in curbing fraud .
“ More attempts in volume can be seen over a period of three years , and the rate is expected to increase significantly if the current recession is to be taken into consideration .
“ The current economic recession has and will always drive persons deeper into fraudulent activities. ”
In terms of payment channels from which the frauds were perpetrated , the report stated that in 2014 , fraudulent transactions conducted through the ATM were 491 cases; Internet banking , 287 cases; and web channels, 218 cases , were the top three.
In 2015 , there were 5 , 133 ATM fraud incidents; PoS , 1 , 853 cases; and web , 1 , 463 cases, accounting for the top three most used channels to perpetrate fraudulent transactions .
In 2016 , ATM with 9 , 522 cases; mobile , 3 , 832 ; and web channels, 2 , 677, were the three most used channels.
The report added , “ Apparently , ATM and web channels have consistently appeared in the top three channels used to perpetrate fraudulent transactions for three years running .
“ This is something we have to look at collectively in the industry as it can be deduced that ATM channel has been the focal point for fraudsters in the last three years .
“ The emergence of mobile channel in this category cannot be extraneous to the various financial products and services we have these days , which ride on mobile platforms . ”
Speaking on the increasing rate of frauds in the banking system , financial analysts called on the CBN and the Nigerian Deposit Insurance Corporation to step up their regulatory oversights , adding that sensitive positions in banks should not be given to those who were not members of relevant professional bodies .
Those that spoke to our correspondent in separate telephone interviews are the Head, Banking and Finance Department , Nasarawa State University , Keffi , Uche Uwaleke ; and a former Managing Director Unity Bank Plc , Mr . Rislanudeen Muhammed .
Uwaleke , an Associate Professor of Finance, said the value system in the country, which celebrates wealth with no questions asked as to the source , needed to be changed .
He said , “ There is also a justice system that is very slow and , therefore , fails to act as a deterrent to fraud. Equally are lapses in internal control systems of banks , which are circumvented by fraudulent staff sometimes with the connivance of auditors.
“ Furthermore, the flip side of electronic banking is the level of sophistication associated with bank frauds and the specialist skills required in detecting such. So , it is not a surprise that the level of bank frauds is on the rise . Worse still , banking in Nigeria has become an all-comers affair where anybody who can bring deposits is employed . ”
As a way forward, he suggested that the control systems in banks should be strengthened .
“ Only professionals who belong to bodies that self - regulate their members , such as the Chartered Institute of Bankers of Nigeria , should be assigned to sensitive positions in the banks , ” he added .
Muhammed said since bank frauds were a threat to the stability of the financial sector , both the CBN and the NDIC should step up strategies for tackling the menace .
He said , “ Recent elevated risk in fraud cases will naturally impact negatively on the individual bank’ s loan loss provision , other known losses as well as profitability and capital adequacy ratios .
“ The risk of under capitalisation will also impact negatively on solvency ratios . This underscores the imperative for strengthening internal control as well as risk management divisions in banks .
“ The Central Bank of Nigeria should ensure compliance by banks of having internal control officers in each branch . This ensures that fraud cases are dealt with timely and proactively rather than reactively or after the fact . ”
He stated that in situations where fraud cases were at the corporate level , the chief internal control officers were duty bound to report directly to the regulators as provided by the law .
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Contact : editor @ punchng . com
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Residents chase away policemen,

POLICE ARREST 15 suspected Badoo cult members.

 The Lagos State Police Command  with Odua Peoples’ Congress, OPC,  Onyabo and local vigilantes in Ikorodu axis of Lagos, have arrested fifteen suspects in connection with the activities of the dreaded Badoo cult  in Ikorodu.
In a statement, the team, in an operation, which started over the weekend witnessed the movement of a combined team of police officers drawn from Lagos Command, Rapid Response Squad and Ikorodu Police Division led by the Deputy Commissioner of Police, Operations, Mr. Imohimi Edgal.
 The team, as at the time of  this report has combed black spots and suspected areas like, Ibeshe, Ita Maja, Ijede, Ipakodo and other areas to arrest the suspects.
The exercise is a follow up to a meeting with the factional leaders of Odua Peoples’ Congress, Chief Gani Adams and Onyabo last week at the police command Ikeja.
 Over forty  police and RRS vehicles have been deployed for the operations.

According to the Lagos State Police PPRO, ASP Olarinde Famous - Cole, the exercise will be  a continuous one, as it involves the Commander, Rapid Response Squad, ACP Olatunji Disu, DPO, Ikorodu among other top police officers.

Guard lock colleagues up ,  steals laptops, twenty four hours after  assuming duty.

Though he describes his stealing habit as a spell by evil forces , security Operatives said they are not fooled by the superstitious excuse an alleged notorious thief  Abdumalik Tijani is peddling.
Tijani according to the police did not waste time in exhibiting his   criminal tendencies as he allegedly  stole four laptops barely twenty four hours after he was employed as a guard with the  ChristCross security company .
Tijani 18 would have absconded with his loots but policemen attached to the Victoria Island Police station who were on patrol  operation accosted the suspect around 3am and asked him what he was carrying in his Backpack.
Narrating how he was arrested, Tijani said " I am from Kabba in Kogi state. I came to Lagos and started attending  church regularly. After attending church for two weeks, the pastor noticed I was always begging for money. He called me to his office and asked me what my name was but I lied to him that my name was Christopher  Benson   .  He  introduced me to a private  security company called ChristCross security company and they employed me immediately. I was employed on Friday and was given orientation with a salary package of N18,000 per month. I was deployed to the Trinity House in Victoria Island on Saturday but I had a strange urge to steal. I already hatched a plan and when the three other guards on duty with me were fast asleep at midnight,  I locked them up in the security  room  and went into the office where I stole four laptops .One Apple and three HPs laptops. I packed all the laptops in a backpack and sneaked out of the place. Trying to hide my crime , I called our supervisor on the phone and told him that I was kidnapped on my way to buy food. Luck however ran out on me when a team of policemen on patrol saw me with the Backpack and ordered me to stop. I lied to them that I was coming from a far journey but the policemen did not buy the story I told them. They opened my bag and saw the laptops. They took me to the Victoria Island Police station and I was detained . I intended to sell one Laptop for N10,000 at computer village. ".
Narrating how he ventured into crime, Tijani said " I started stealing since I was young. I was stealing in my village and I remembered that I stole money when I was 15 years old. When I came to Lagos,  I started stealing again. I would stand at the bus stop at ilupeju area and snatch phones and handbags from women on bike. There was a day I was catch at Mushin area stealing phone and I was arrested and kept behind the Counter. I lied to the police that my name was Tosin  Daramola   . I escaped from custody and went back to stealing . I cannot do without stealing. It's like I am under an evil spell".
It was gathered that the police at the Victoria Island Police station charged the suspect to the Igbosere Magistrate court 8 on charges bordering on theft.
Tijani pleaded  guilty to the charge and he appealed to the Magistrate Hon. Oghe  G. O  to tamper Justice with mercy . The Magistrate convicted the accused.

Police beef security around Evans

Policemen attached to the Lagos state police command have beefed up security around the notorious kidnapper Chukwudidumeme
Onuamadike aka Evans .
It was gathered that the command directed patrol officers attached to the Federal  Special Anti- Robbery Squad FSARS Lagos state police command and Operatives of the Inspector General of Police Intelligence Response Team IRT were directed to keep a close eye on Evans following fears that his gang members may break him out of the cell where he is being held at the FSARS   Lagos command.
A FSARS operative who requested anonimity said " I and  My team members who have been on patrol for six months were recalled by the Officer in Charge of the FSARS Lagos state command CSP Sanusi to to come and man the FSARS cell at the command. He said he was directed by the DCP Administration since the Lagos state Commissioner of Police  Fatia Owoseni has gone to Mecca for Hajj. He said the command  is recalling us because of  of  fear that Evans  can escape or his gang members can attack the command".
Meanwhile the police have kept Evans incommunicado as journalists who had made attempts to speak with him have been turned down.
Saturday Telegraph attempted to speak with Evans concerning his suit against his detention but efforts to see Evans were not successful.
Police officers attached to the I RT team said " We cannot allow journalists to speak to Evans . You people are writing rubbish about him just to sell your paper. Evans can die , he is down with diabetics  and the way you people are publicizing him can cost him heart attack. Nobody has seen Evans in the last one week. We are keeping him away from the public". 

Resident Lynch suspected Badoo   member in Lagos.

- "Ritualists may be    behind "Badoo" killings in Ikorodu-- Rtd DIG

A man suspected to be a member of the dreaded Badoo cult member was  allegedly burnt to death at the Ikorodu area of the state.
The man it was learnt was  apprehended about   1am by the angry  residents of Igbo-Oluwo, Ikorodu,  and set ablaze around 6.45am, at Jumofak junction a source said but the source did not give the identity of the murdered suspect.
He source said " He  was  seem with another suspect who is now at large. The two suspect allegedly robbed their bodies with oil, which is a major tactic of the dreaded Badoo gang that has been terrorizing residents of Ikorodu for long".
However reacting to the killings , the Chairman of the Lagos state Neighbourhood Corp Rtd DIG Israel Ajao said three persons have been burnt to death.
The incessant killing of residents at the Ikorodu area  of Lagos state by a notorious gang  called Badoo may be for rituals and  fetish purpose. 

Retired DIG Ajao stated this during an interactive session with Crime correspondents in Lagos on Friday.
He said " It has become  a disturbing trend and their modus operandi is worrisome . There is more to it than meet the eyes. They come into a house with no weapon except with a stone or mortar which they use to smash their victims' head. They are not spirits  but they come at the dead of the night 2am and they use the grinding stone and mortar to smash the heads of an entire family. After they are done, they clean the blood with white clothes and they escape. This is bizarre and it is fetish and a ritual .  We believe they are receivers who benefits from this . People who are evil but we will not sit back and allow them to continue in this killing. We are going deeper into this crime and we will nip it in the bud but need the cooperation of members of the community".
In a bid to strengthen public confidence in the security agencies ,the retired DIG Ajao stated that the Corp will carry out a sensitization workshop around the local government areas in the state.  .
He added that the Lagos state Neighbourhood Corp was established to complement the police and urged members of the public to provide useful information to the Corp.
He said " Officers of the Corp are sons and daughters of the community .It is not about state of origin but the person must be resident in Lagos and registered with the state. We have people from all the geographical locations of the country. We have been mandated to do grassroot policing also known as community policing . We are not substitute for  the Nigeria Police but we complement the police. This is necessary seeing the level of crime in the society. No matter how brilliant the security agencies are, without the cooperation of the members of the public, the police cannot perform. We therefore urge members of the public to use the toll free lines and send use anonymous messages if they see something, they should say something"
It can be recalled that the notorious Badoo cult murdered a family of four at  the Ikorodu area of the state. Residents stated that the cult have killed about 26 persons in the last one year ".