Connect with us

E-Financial

Banks Lose N15.15Bn to Frauds in 2018- NDIC

Published

on

Kindly share this post

The banking industry lost N15.15 billion to cases of fraud last year, indicating an increase of 539 per cent when compared to the N2.37 billion lost in 2017, according to Nigeria Deposit Insurance Corporation (NDIC).

 

NDIC in its 2018 Report, also said that the total amount involved in fraud in the year under review stood at N38.93 billion compared to N12.01 billion in 2017.

The report said a total of 37,817 fraud cases were reported in 2018, compared to 26,182 in 2017.

 

NDIC attributed the increase in fraudulent cases to “the increase in the sophistication of fraud-related techniques such as hacking, cybercrime as well as increase in IT-related products and usage, fraudulent withdrawals and unauthorised credit.”

 

According to the report, Internet and technology-based sources of fraud have the highest frequency, accounting for 59.2 per cent of fraud cases and 42.83 per cent of the actual total loss suffered.

The number of ATM/card-related fraud cases, however, declined from 16,397 in 2017 to 10,063 in 2018.

 

The report said: “That may be attributed to improved security features of the card as well as security awareness on the part of users.”

 

But web-based fraud cases, however, increased from 7,869 in 2017 to 12,343 in 2018, the report noted.

 

Notably, some of the fraud and forgery cases had staff involvement with a total of 899 staff involved in fraud and forgery cases in 2018 compared to 320 in 2017.

 

The report stated that the number of temporary staff involved in fraud was 394, accounting for 43.83 per cent of the total number of staff involved in frauds.

 

This was followed by officers and executive assistants’ cadre with 206 or 22.91 per cent . Supervisors and managers accounted for 119 or 13.24 per cent of the total fraud cases.

 

NDIC said the number of temporary staff involved in fraud and forgery cases had consistently been on the increase.

 

“The DMBs (Deposit Money Banks) and regulators need to address the problem of contract/temporary staff in terms of welfare and permanent employment in view of the risk their current status poses to banks operations. Furthermore, banks should strengthen their internal controls and validate their recruitment process,” it added.

 

The corporation also stated that it made a cumulative payments amounting to N116.258 billion to depositors, creditors and shareholders as at December 31, 2018.

 

Providing a breakdown of the payments, NDIC said it perfected payments of insured and uninsured deposits of N108.641 billion, N2.973 billion and N70.53 million to depositors of defunct DMBs, MFBs and PMBs, respectively.

 

Also, it made payments of N1.272 billion to creditors and N3.30 billion to shareholders of banks in-liquidation.

 

In addition, it disbursed N4.83 million to 338 depositors of 18 closed DMBs.

 

“As at 31st December, 2018, the NDIC has paid a cumulative sum of N8.25 billion as insured amount to 442,999 depositors of closed DMBs against the payment of N8.24 billion to 442,661 depositors as at 31st December, 2017.

 

“In 2018, the NDIC paid N89.24 million insured deposits to 1,804 depositors of MFBs in-liquidation compared to 173 depositors of closed MFBs and N13.24 million paid in 2017. The significant increase was due to the 138 MFBs that were closed during the year. The cumulative payment of N2.97 billion was made to 83,415 depositors of closed MFBs as at 31st December, 2018, compared to N2.88 billion paid to 81,611 depositors of closed MFBs as at 31st December 2017,” NDIC said.

 


Kindly share this post

Nigeria CommunicationsWeek believes that technology makes life more exciting and helps improve the lives of people around Nigeria and indeed the world. So since 2007, we have devoted our energy to independent reportage of technology and how they affect lives.

Continue Reading
Comments

E-Financial

FG Sacked IST Members over Fraud- Ahmed

Published

on

Kindly share this post

Mrs Zainab Ahmed, minister of Finance Budget and National Planning, has said the Federal Government sacked some past members of the Investments and Securities Tribunal (IST) as they indulged in corruption.

FG Sacked IST Members over Fraud- Ahmed

Inaugurating the new members, the minister charged the new members to eschew corruption and be forthright.

Bar. Azi Amos Isaac was appointed as Chairman for a five year term and Bar. Nosa Smart Osemwengie, was re-appointed as member for a second term of four years.

“The problem with the tribunal has been infighting amongst members, lack of industrial harmony and series of complaints bordering on maladministration.

“This has been the bane of the tribunal and a source of embarrassment not only for the Ministry of Finance but for the government in general,” Ahmed said.

The new chairman, Azi, assured the finance minister that, “the teething issue of restiveness has been addressed since he assumed duty,” adding that, “The place is calm and the staff have become very supportive.”

Azi said since 2003, the tribunal has “given judgment in the value of assets worth over N844 billion and that from 2017 to date, they have given decisions in monetary value totalling over N28bn.

“It has not failed in its adjudicatory responsibility.

“It has carried out its assignment with candour and integrity and intends to improve on what has been on ground.”

 


Kindly share this post
Continue Reading

E-Financial

CBN Bans Customer-to-Customer Forex Transfer

Published

on

Kindly share this post

Central Bank of Nigeria (CBN) has banned transfer of foreign exchange (forex) from one customer to another.

CBN Bans Customer-to-Customer Forex Transfer

According to the apex bank, forex cash lodgements into domiciliary accounts can only be done by the account owners henceforth.

An internal memo available in the media space explains that the new guidelines are necessary to review the utilisation of inflows into customers domiciliary accounts.

The circular states: “Forex inflows cannot be credited to customers until the legitimacy of funds is established.

“They can have unfettered access by telegraphic transfers up to a limit of $40,000 monthly for payment of medical bills, school fees, subscription to professional bodies subject to existing CBN guidelines.

“Transfers from one customer to another is prohibited. Transfer within related companies is allowed subject to a limit of $50,000 per month.”

It recommended that proceeds from non-oil exports should be sold to banks, used for repayment of dollar term loans, and self-utilisation for trade transactions for LC, bills and Form A.

Also oil export proceeds from E&P companies are to be used to pay contractors and service providers employed by the oil companies in addition to the recommended uses for non-oil FX proceeds.

Offshore forex inflows from other Nigerian banks and internal account to forex transfers sourced from offshore inflows are to be used for trade transactions subject to eligibility for E-Form M.

“Upon confirmation of the legitimacy of the inflows, customers can have unfettered access, subject to a maximum of $50,000,” the document read.

“Utilisation for trade transactions subject to processing of eligible trade transactions using E-Form M. Payment for services must be backed with demand note from offshore beneficiary and other regulatory documents.

“Related party transfers are allowed to the maximum of the inflow received. The transfer request should be backed by a signed instruction from the account holder.” Payment of government fees and levies are also allowed to the maritime, oil and gas, aviation. government parastatals and export processing zones.

 


Kindly share this post
Continue Reading

E-Financial

Stanbic IBTC, Standard Bank, Listed Among Top African Corporate Brands

Published

on

Kindly share this post

Stanbic IBTC Holdings PLC and its parent company, Standard Bank, have emerged amongst the top winners of the 2020 Tech Times’ Africa LinkedIn Corporate Brand Awards.

The Stanbic IBTC Group emerged the second position in the category, with total votes of 3,515, out of 24 firms nominated for the award. Standard Bank placed the fourth 2,494 votes.

Nominations for this award opened to the public on July 1, 2020 and closed on July 14.

Shortlisted nominees were announced on August 24 while voting commenced immediately and voting ended on September 8, 2020.

The Corporate Brand Awards was instituted by Tech Times’ Africa, an online platform for leading technology, innovation, and startup stories.

Expressing his delight on the awards, Dr Demola Sogunle, Chief Executive, Stanbic IBTC Holdings PLC, said that both Stanbic IBTC Holdings PLC and Standard Bank had been deliberate and consistent in making a remarkable impact in Africa’s financial sector.

“Our sincere appreciation goes to the organisers of the Africa Corporate Brands Awards and to every member of the public who voted. This is a reflection of the high level of trust and confidence that the public has reposed on us,” he added.

Dr Sogunle further said that Stanbic IBTC Holdings PLC would remain relentless in portraying the organisation as one of the most influential corporate brands in Africa.

He stated: “Stanbic IBTC Holdings PLC and Standard Bank have relentlessly contributed to driving the growth and development of the African financial ecosystem. These awards affirm our efforts, and we are encouraged to raise the bar continually.”

The Africa Corporate Brand Award is designed to identify and recognise outstanding companies. It also projects their achievements and impacts on African society and the world at large.


Kindly share this post
Continue Reading

Trending