The Nigerian Inter-Bank Settlement System (NIBSS) says mobile fraud cases would rise above those of automated teller machines (ATM) by 2020 going by the rising rate of fraud in the channel.
Adebisi Shonubi, managing director NIBBS, disclosed this at the third annual banking security summit organised by MAXUT Consulting in partnership with OneSpan, a global data security company in Lagos.
Shonubi, who was represented at the event by Olufemi Fadairo, head, industry security services at NIBBS, said the banking industry lost N12.30 billion in 41,461 fraud cases between 2014 and 2017.
He noted that while fraud trend is generally on the decline, mobile fraud trend alone is on the increase, adding that the top three mobile threats in Nigeria include phone theft, SIM swaps and kidnappings.
He said the ATM as a channel accounted for the highest fraud in 2017 with an actual loss of N497.64 million in 9,823 cases with mobile trailing with the loss of N347.65 million in 5,055 cases. Across-the-counter transactions accounted for 314 cases with the loss of N259.02 million.
Specifically, he noted that 2014 fraud volume stood at 1,461 and rose sporadically to 10,743 by year 2015. The volume further rose to 19,531 in 2016 and climaxed to 25,043 in 2017.
Speaking on the topic “Industry fraud overview with focus on mobile & payments related frauds,” Shonubi highlighted that the industry lost N6.22 billion in 2014 on attempted fraud value of N7.76 billion while the sum of N2.26 billion was lost in 2015 on attempted fraud value of N4.37 billion in 2015.
In 2016, the industry lost the sum of N2.19 billion on attempted fraud value of N4.37 billion.
Shonubi said a gender fraud analysis in the period under review showed males accounted for 73 percent of recorded cases, while females accounted for 23 percent.
He said more fraud cases were reported in 2017, with an increase of 28 percent compared with 2016 but with less financial loss.
Shonubi, however, called on Nigerians to shield themselves by ensuring phone lock, SIM lock, swap/recycle checks.
Also speaking at the event, Mike Odusami, CEO/President MAXUT Consulting, said the summit was geared toward making the financial system safer for people to have trust in the system.
“Our solution as a technology company is really about fraud prevention and making sure that this is the person the bank authorises because most of the transactions are not physical, they are done through electronic channels.
“And also in the background, we are monitoring everything that is going on in the system, that is fraud monitoring and we have helped a lot of banks and financial institutions to do that,” he said.
Odusami said the company was committed to make the banking system safer for people to have confidence in the system by preventing.
He said the Nigerian banking system was advanced and not lacking behind in terms of digital banking.
“We are very advanced; we are not lacking behind, but because a lot of transactions are still done through USSD channel, this is the normal feature channel and anybody can use it.
“Lot frauds are done in that channel either through SIM swap, stolen phones and kidnapping. So we are working with the banks to develop a solution to curb that,” Odusami said.
He also said the country was still behind in open banking security, and that it was relatively new with more players connecting to the banking system.