
News
Nigerian banks lost N42.6bn to fraud in three months Report
The amount lost in the second quarter of 2024 alone exceeded the total amount lost to fraud by the banks throughout the entire year of 2023. In 2023, the banks lost a total of N9.4bn.
This was revealed by the Financial Institutions Training Centre in its Q2 2024 Fraud and Forgeries report released on Saturday, highlighting a surge in fraudulent activities across banking platforms.
The FITC report is based on returns on fraud and forgery cases received from 28 deposit money institutions in the country.
According to FITC, 80 of such returns were received in the quarter under review. It said that 26 reports were submitted in April, while twenty-seven 27 reports were received in both May and June.
A breakdown of FITC’s data showed that the Q2 loss shows an 8,993 per cent increase in loss when compared with the N468.4m lost in Q1 2024.
This also represents a 637 per cent increase when compared with the N5.7bn loss recorded in Q2 2023.

FITC said ‘miscellaneous and other fraud’ types constituted the largest loss, representing 96.46 per cent of the total amount lost, with a value of N41.14bn.
This was followed by losses from fraudulent withdrawals and computer/web fraud, amounting to approximately N781.2m and N400.7m, respectively.
According to the report, there was a staggering 1,784 per cent increase in the total amount involved in fraud cases from Q1 to Q2 2024, with the sum escalating from N2.9bn to approximately N56.3bn in Q2.
During the second quarter of 2024, fraudulent activities were carried out through various channels, including ATMs, online platforms like web and mobile banking, bank branches, and point-of-sale terminals.
Among instruments used, card fraud recorded a significant decrease, declining by 47.66 per cent from 21,469 in Q1 to 11,237 in Q2.
In contrast, fraudulent activity involving cheques and cash increased by 36.67 per cent and 9.09 per cent, respectively, with cheques surging from 30 cases in Q1 to 41 cases in Q2, while the use of cash rose from 209 in the first quarter of 2024 to 228 in the second quarter of 2024.
The increase via cash is likely to be fuelled by the demand for cash ransom for kidnapped citizens by bandits.
A further analysis of the data shows a significant rise in the amount lost across all channels, except for mobile fraud, which recorded a decline.
In terms of magnitude, losses through bank branch-related channels rose by 31,497 per cent to a value of N42.2bn in Q2 from N133.9m in Q1 2024.
Additionally, computer/web frauds also saw a monumental increase of 1,560 per cent, with losses growing from N24m to N400.8m.
However, there was no indication of the amount lost due to ATM-related fraud, while mobile fraud recorded a decline in the amount lost from the previous quarter, decreasing by 59 per cent from N216.4m in Q1 to N88.7m in Q2 2024.
With the staggering increase in losses to fraud, the FITC advised the banks to enhance their monitoring and auditing procedures.
According to the Centre, deposit money institutions can utilize AI-driven tools that flag unusual entries or patterns to implement continuous and automated monitoring systems that can detect anomalies or discrepancies in settlement files.
Additionally, regular unannounced internal audits focusing specifically on settlement processes can be conducted to identify and address any irregularities promptly.
“Access controls should also be strengthened by limiting access to settlement files to only a small, vetted group of authorized personnel given the appropriate clearance and are regularly trained on the latest security protocols.
“The implementation of multi-factor authentication and role-based access controls can aid the reduction of the risk of unauthorised changes to settlement files,” FITC stated.
PUNCH

News
Driver kills employer in Delta, flees with vehicle to Anambra
A personal driver of a Pentecostal bishop of End-Reconciliation Ministry in Asaba, Delta State, has been arrested for allegedly killing his employer and fleeing with his vehicle, a Toyota Prado Jeep.
The driver, whose identity has yet to be disclosed due to ongoing investigations, was arrested alongside another suspect in Nkpor, Idemili North Local Government Area of Anambra State, while attempting to sell the vehicle.
The Commissioner of Police in Anambra, CP Ikioye Orutugu, disclosed this during a press briefing at the Command’s headquarters in Awka, on Wednesday, adding that the suspect murdered the cleric before fleeing with his vehicle to Anambra to sell.
Orutugu said the arrest followed a swift intelligence-led operation by operatives attached to the Rapid Response Squad, Awkuzu, which led to the arrest of the suspect and another individual alleged to be the buyer of the stolen vehicle.
He said the driver conspired with some criminal elements still at large, to kill his employer, adding that investigations are ongoing to apprehend other members of the criminal gang involved in the incident and fully unravel the circumstances surrounding the unfortunate murder.
He said, “The operatives of the Anambra State Police Command arrested a domestic staff member allegedly involved in the gruesome murder of his employer, a Pentecostal Bishop of End-Reconciliation Ministry in Asaba, Delta State, and the subsequent attempt to dispose of the victim’s Toyota Prado Jeep in Nkpor, Idemili North Local Government Area of Anambra State.

“The breakthrough followed a swift intelligence-led operation by Operatives attached to the Rapid Response Squad, Awkuzu, which led to the arrest of the suspect and another individual alleged to be the buyer of the stolen vehicle.
“Preliminary investigation reveals that the suspect, who served as the Bishop’s driver and domestic staff, allegedly conspired with yet-to-be-identified criminal elements to murder the cleric before fleeing with the victim’s Prado Jeep to Anambra State for sale.
“Police operatives, acting on credible information, tracked and intercepted the suspects in Nkpor, successfully recovered the stolen vehicle, and took them into custody for further interrogation.”
The CP stated that investigations are ongoing to apprehend other members of the criminal gang involved in the incident and fully unravel the circumstances surrounding the unfortunate murder.
Orutugu advised the public to exercise due diligence in the recruitment and management of domestic staff, drivers, and other household employees.
He urged members of the public to properly profile and verify the identities of persons employed in their homes and establishments, while also remaining vigilant to suspicious behaviours and activities.
“We assured the public that the Command remains committed to proactive policing, intelligence-driven operations and collaboration with sister security agencies to ensure the safety of lives and property across the State,” the CP added. (The PUNCH)

News
EFCC arrests energy commission DG over N500bn fraud allegations
Operatives of the Economic and Financial Crimes Commission have arrested the Director-General of the Energy Commission of Nigeria, Mustapha Abdullahi, over alleged money laundering offences.
A source within the anti-graft agency, who spoke on condition of anonymity because he was not authorised to speak on the matter, disclosed on Wednesday that Abdullahi was arrested in Abuja and is currently in the custody of the commission.
According to the source, the alleged fraud involves funds estimated at N500bn.
“We have arrested the Director-General of the Energy Commission of Nigeria, Dr Mustapha Abdullahi, for money laundering offences. He was arrested and is currently in our custody. The money Is to the tune of N500bn,” the official said.
Efforts to get confirmation from the EFCC spokesperson, Dele Oyewale, were unsuccessful as he could not be reached as of the time of filing this report.
President Bola Tinubu had on October 24, 2023 appointed Abdullahi as Director-General of the Energy Commission of Nigeria.


News
MainPower: EERC Downgrades 59 Feeders in Enugu over Poor Power Supply
… Several Band A Customers downgraded to Band C
Enugu Electricity Regulatory Commission, EERC, has announced the downgrade of 59 feeders under the franchise of the MainPower Electricity Distribution Company Limited.
MainPower is a subsidiary of the Enugu Electricity Distribution Company, EEDC, which services customers in Enugu State.
EERC attributed the action to MainPower’s failure to meet the threshold of minimum hours of power availability, especially for Band A customers, despite charging them Band A tariff.
It could be recalled that the Nigeria Electricity Regulatory Commission, NERC, in November 1, 2020 categorized electricity users into Bands.
It incldued: Band A: Minimum of 20 Hourss; Band B: Minimum of 16 Hours; Band C: Minimum of 12 Hours; Band D: Minimum of 8 Hours and Band E: Minimum of 4 Hours
However, there has been an outcry by electricity users in Enugu over the inability of the Disco (Manpower) to meet the electricity supply target, necessitating the EERC’s intervention in line with its statutory powers.

The public notice, signed by the Commission, said the downgrade would remain in place until power supply improved on such feeders.
Providing background to the decision, EERC said it arose following persistent complaints from electricity consumers in Enugu State, particularly Band A customers.
Their complaints were regarding the drastically reduced hours of supply.
Consequently, the EERC said it conducted a technical and safety audit of major injection substations operated by MainPower.
“In addition, the Commission continued its routine monitoring of MainPower’s feeder performance through its online platform, the Electronic Design and Manufacturing International (EDMI) Multidrive Manager.
“The findings from the Commission’s field inspection and the online monitoring platform corroborated customers’ complaints that MainPower had failed to deliver the expected hours of supply as required under the Service-Based Tariff (SBT) regime.
“The SBT framework was introduced to ensure that customers pay for electricity commensurate with the quality and hours of availability of the supply received.
“The public is hereby notified that the Commission has directed MainPower to downgrade all fifty-nine (59) affected feeders, as listed in the Commission’s directive, to their appropriate service bands immediately,” it disclosed.
EERC, however, hinted that upon request by MainPower, it may approve the upgrade of any of the downgraded feeders “once it is verified that the feeder met the threshold of minimum hours of availability in the preceding month in line with the SBT framework”.
Some of the feeders downloaded include: 9th Mile Industrial 11KV, downgraded from Band A to Band C; Abakaliki Road 11KV, downgraded from Band A to Band C; Abakpa 1 11KV, downgraded from Band A to Band C; Abakpa 2 11KV, downgraded from Band A to Band C; Abakpa 3 11KV, downgraded from Band B to Band C; Amorji 11KV, downgraded from Band B to Band D; Nsukka Township, from Band B to D; Presidential, from A to C; UNEC from A to D; University of Nigeria Nsukka from A to D and Government House from A to E.
Other affected areas included Emene, Topland, Ugwuoye, Chime Avenue, Achi, Amechi, Ibagwa, Ugwuogo, Ugwuaji, Okwe, NOWAS, Coca Cola, Coal Camp, Dhamija, among others.

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