E-Financial
Bank Insiders Help Fraudsters Steal Billions
Despite multiple security checks in banks, incidents of fraud are on the increase, prompting the Central Bank of Nigeria (CBN) to raise alarm, blaming it on insiders.
A report by Weekly Trust takes a look at the disturbing trend.
According to Weekly Trust, since e-banking commenced some years ago, banking operations and services to customers have been made easier.
But despite the smoothness and comfort on offer, there are also setbacks and risks the banks and customers face from time to time. Investigations indicate a rise in fraudsters cashing in on modern technology to fleece unsuspecting depositors.
Weekly Trust spoke to a banker in one of the leading commercial banks in Nigeria, who craved anonymity, and he confirmed the rise of insider collaborators in fraud. He noted that the network of criminals is so strong that it is extremely difficult to pin down the culprits.
The source said the most elementary aspect of the fraud is wilful neglect of checking and confirmation of personal data and addresses of fresh bank customers who want to open new accounts.
“There is a policy called “Know Your Customer” (KYC). It is expected that any person who comes to open a new bank account is only granted that opportunity upon confirmation by his account officer the accuracy of the information he has rendered in his personal data form, especially his office and residential address. But in most cases, customers who are fraudsters who come to open accounts and have connivers within, give fake information,” he said.
“Without necessary confirmation, the conniver goes ahead to open such accounts, which are used in defrauding people. In effect, when fraud happens, the suspects cannot be located with the addresses in personal data forms. He stands a better chance of evading prosecution at this point,” the source added.
Another source disclosed that would-be fraudsters who have insiders approach the bank with account numbers and other details of persons they know are flush with cash.
“They come and pretend that they have forgotten the signature they signed for the account in question. They request that the manifest be opened for them to see their signature and remember. Once the insider opens the manifest, the fraudster could also request to snap the signature with his phone, under the pretext that he doesn’t want to forget it again. These are questionable demands, but the insider grants it because they are in collaboration. Of course, we know there are expert forgers,” he explained.
In another case, a man who operated an account with a commercial bank (name withheld) with a heavy base in the North had N2.1 million withdrawn from his account by fraudsters.
The man, who pleaded anonymity, said he had N3.2 million in his account and went to withdraw N200,000.
He had not withdrawn cash for a while, noting that the transaction was done. But since his GSM number which receives SMS alerts was inoperative, he requested for written balance, only to discover that N2.1 million had been withdrawn.
“I raised alarm and upon investigation by the management of the bank, it was discovered that someone forged my bank documents, impersonated me with an identity card and also cloned my GSM line. The money was transferred into an account in Abuja, but I couldn’t get the alert. The bank later discovered I never made the transfer or withdrawals and refunded my money, but it suspended the cashier who authorized the payment,” the victim said.
Weekly Trust gathered that fraud within the banking sector manifests at different levels and it is systemic in nature.
A source said bank staff would not ordinarily open doors for a thief to come in and steal money from the vault.
He said what obtains is that corrupt bank staff carefully arrange for a lapse to occur, so they can explore that window.
Also, a recently retired senior manager with one of the old generation banks who prefers to be identified simply as Mustapha said experience tells him it is almost impossible to hit any bank without internal assistance.
“One of the common examples of fraud amongst the top officers of banks is in approving fraudulent loans for their proxies. They register companies in the name of their friends or families, put documents together and approve huge sums to these companies which largely exist only on paper.”
Then they go ahead to approve all manner of concessions and waivers, practically giving themselves these monies, robbing the bank of legitimate income. Billions of naira get stolen this way, accumulatively.
Investigation also revealed that even where these companies truly exist with verifiable business on ground, they cannot access bank loans on record time without reaching a compromise with the bank officials on what percentage they will get as kick-backs.
“In doing so, even where there are danger signals to warrant reconsideration, they will be overlooked and approval will be given,” another source added.
A chartered accountant and auditor, Mr. Sunday Enenche said a good number of the high-profile fraud cases are executed by top management staff of banks, with bank management using their branches to warehouse large sums for politicians and other highly placed individuals in the society.
According to him, these monies are not captured in the books of the banks because they could raise suspicion by the Economic and Financial Crimes Commission (EFCC), saying it denies the bank of income.
“With the cooperation and understanding of the bank management, they move these sums around from time to time to avoid Central Bank of Nigeria’s (CBN) unscheduled inspection. You will rarely see the real owners of these monies in the banking hall, as they have their agents who are well-known by the banks and can access these monies at any time of the day,” he added.
Worried by the increasing cases of fraud, the CBN on January 19 through a circular issued a directive urging banks to take steps to curb the trend.
The directive, signed by Mr. Dipo Fatokun, Director, Banking and Payment System Department, also stated that the abuses center on identity theft and abuse of authorization.
The apex bank therefore announced measures to check such and gave a December 31, 2015 time limit for compliance by all banks or a N50,000 fine daily after the expiration of the deadline.
Experts argue that what you get with the lower ranks of bank officials is not frequent and they also come in various forms because the opening is not always there.
They insist that in some cases, double deductions occur on same amount on an account where the customer has made same type of deductions, by not crediting the customer’s account with deposits, yet issuing a teller to the customer.
They could also connive with robbers to hit the banks premises or bullion vans if they notice that guards are loose on certain days or times. There are also cases of signature forgery and altered cheques.
But Mustapha cautioned that whereas banks keep updating their fraud counter-mechanisms, a lot more depend on the integrity and prudence of the staff to succeed.
The banks may need to also reconsider the current practice of contract workers who handle transactions far above their pay grades.
“You cannot employ a graduate, place him on contract and pay him less than 50 percent of what a similar graduate in the same system earns, who is not on contract. Temptation will be there.”
Ecobank Transnational Incorporated (ETI) has joined the trillion-naira exclusive club of firms, marking its first entry in its two decades of being listed on the Nigerian Exchange.
The Pan-African lender saw its valuation surge more than the N1 trillion mark on Monday, January 5, 2026. As of the close of trade on Monday, January 12, the stock had gained 7.4 percent, with its share price hitting N45. ETI has accrued 23 percent over the past four-week period alone, making it the 40th best on NGX.
“Ecobank Transnational Inc. is currently the 23rd most valuable stock on the NGX with a market capitalisation of N 1.07 trillion, which makes up about 1.02 percent of the Nigerian Stock Exchange equity market,” according to African Stock Exchange data, a market analytics platform.
This historic feat follows the early repayment of $245 million of Ecobank’s $300 million Eurobond issuance to bondholders who validly tendered their notes ahead of the February 2026 maturity date.
This must have led to an improved confidence in the bank’s operation, which gained 61 percent a year ago despite the sell-off that rattled the bank’s stock in 2025.
More Nigerian lenders are seeing their market capitalisation cross the N1 trillion mark, suggesting renewed investor confidence in the sector that’s undergoing a recapitalisation exercise.
GTCO remains the most capitalised, with its valuation reaching N3.62 trillion as of January 12, followed by Zenith Bank, First Bank of Nigeria, United Bank for Africa, Access Bank, and Stanbic IBTC with N2.75 trillion, N2.16 trillion, N1.94 trillion, N1.23 trillion, and N1.7 trillion, respectively. By crossing N1 trillion, Ecobank now sits among the country’s biggest lenders within the trillion-naira club.
Fidelity Bank, on April 4, 2025, saw its market value shoot above N1 trillion, making it the first tier-2 bank to cross the threshold. However, it slipped below the mark on May 20 following a Supreme Court ruling that pressured its share price. The bank’s valuation currently stands at N957 billion.
The membership of the exclusive club of listed companies with at least N1 trillion valuation has increased to 24, compared to 17 a year earlier, according to data from the Nigerian Exchange Limited.
The top five members include BUA Foods with a market cap of N14.38 trillion, MTN Nigerian Communications with N12.70 trillion, Dangote Cement with N10.71 trillion, Airtel Africa with N8.53 trillion, and BUA Cement with N6.2 trillion.
Wema Bank Plc has launched the upgraded version of its flagship digital banking platform, ALAT by Wema. Designed as the next phase in digital banking, the upgraded version of ALAT delivers a smarter, faster, and more intuitive experience, reinforcing Wema Bank’s leadership in technology-driven financial services.
Tagged ALAT: The Evolution, the upgraded version represents a significant advancement in how customers interact with their bank.
It enables seamless banking through intelligent features such as voice banking (called SAW), which allows customers to carry out banking activities using natural voice commands, reducing friction and improving accessibility.
It also introduces Tap and Pay for quick, secure, and convenient contactless transactions, alongside uptime prediction that enhances transparency, reliability, and confidence around service availability.
Together, these innovations are designed to simplify everyday banking while anticipating customer needs in real time, reinforcing Wema Bank’s commitment to trust, efficiency, and customer-centric digital experiences.
While announcing the upgraded version of the ALAT Banking app, Moruf Oseni, Managing Director and Chief Executive Officer of Wema Bank, said, “ALAT: The Evolution is more than an upgrade. It is a clear demonstration of our commitment to redefining digital banking in Africa.
“By understanding the future of banking and listening closely to our customers, we have upgraded ALAT by Wema to a digital banking platform that is smart, intelligent and dependable. This evolution reinforces our promise to deliver innovation that genuinely enhances how people live, work, and transact everyday.”
He added that migrating to the upgraded app is seamless. “Existing customers can simply visit the Google Play Store or Apple App Store to update their existing ALAT app and sign-in with their existing login details (All their account information and transaction history remain intact on their profile and they will also gain access to new features that make banking faster, more intuitive, and more reliable).
For new customers, all they have to do is visit the Google Play Store or Apple App Store to download ALAT by Wema app and click the Get Started icon to onboard seamlessly.
Speaking on the technology in the upgraded ALAT by Wema, Olusegun Adeniyi, Chief Digital Officer at Wema Bank, explained, “With ALAT: The Evolution, we set out to enhance not just functionality but the overall banking experience.
“By integrating voice banking, contactless payments, and predictive reliability, we are delivering a platform that is built on powerful technology and responds intelligently to customer needs. This upgrade reflects our long-term digital vision to create a digital bank that is adaptive, intuitive, and consistently available.”
Built on speed, intelligence, and user-centric design, ALAT: The Evolution redefines everyday banking through intuitive features such as voice-enabled transactions, contactless payments, and predictive service reliability. Designed to anticipate customer needs in real time, the platform delivers a smarter, more seamless, and dependable digital banking experience that reflects Wema Bank’s vision for the future of finance.
With the upgraded version of ALAT, Wema Bank continues to strengthen its position as a digital-first institution, delivering innovative solutions that empower individuals and businesses to bank with confidence in an increasingly digital economy.
Nigeria Deposit Insurance Corporation (NDIC) has declared a second liquidation dividend of ₦24.3 billion for depositors of Heritage Bank Limited (in liquidation) whose account balances exceeded the statutory insured limit of ₦5 million at the time of the bank’s closure.
Heritage Bank’s operating licence was revoked by the Central Bank of Nigeria (CBN) on June 3, 2024, after which the NDIC was appointed liquidator in line with the Banks and Other Financial Institutions Act (BOFIA) 2020 and the NDIC Act 2023.
In a statement signed by Hawwau Gambo, head of the Communication and Public Affairs Department, the Corporation said “the second liquidation dividend would be paid at a rate of 5.2 kobo per ₦1.00 on outstanding uninsured balances. This brings the total liquidation dividend paid so far to 14.4 kobo per ₦1.00.
“The NDIC has now declared a second liquidation dividend of ₦24.3 billion. This amount, derived from debt recovery, sale of physical assets, and realisation of investments, will be applied to the payment of uninsured balances for depositors with funds exceeding the ₦5 million insured limit. The second liquidation dividend is payable at a rate of 5.2 kobo per ₦1.00 on outstanding balances, in accordance with Section 72 of the NDIC Act 2023. This brings the cumulative liquidation dividend declared to date to 14.4 kobo per ₦1.00”.
The NDIC recalled that it had earlier paid a first liquidation dividend of ₦46.6 billion in April 2025, representing 9.2 kobo per ₦1.00, following the reimbursement of insured deposits of up to ₦5 million per depositor from its Deposit Insurance Fund.
According to the Corporation, the second tranche was made possible through sustained recovery of debts and continued asset disposal.
“This payment is in furtherance of our statutory responsibility to ensure that depositors of closed banks are reimbursed promptly as assets are realised,” the NDIC said.
The Corporation explained that payments would be made automatically to eligible depositors using existing records. Depositors who have already received their insured deposits and the first liquidation dividend will have their alternative bank accounts credited automatically through their Bank Verification Numbers (BVN).
However, depositors without alternative bank accounts or BVNs, as well as those who have not claimed their insured deposits or the first liquidation dividend, were advised to visit the nearest NDIC office nationwide or complete the e-claim form on the Corporation’s website for verification and processing.
The NDIC noted that liquidation dividends are paid only to depositors with balances above the insured limit and are sourced from asset sales and recoveries. Other creditors and shareholders will be considered only after all depositors have been fully reimbursed and subject to the availability of funds.
The Corporation assured the public that the ₦24.3 billion payment represents only the second liquidation dividend, adding that further payments would be made as additional assets are realised and outstanding debts recovered.
Depositors were advised to contact the NDIC Claims Resolution Department at any of its offices nationwide or through the Corporation’s official email addresses and helplines for further enquiries.
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