Zenith Bank loses N10.9m to fraud in six months

Zenith Bank

By Ayobami Adedinni

Zenith Bank Plc lost a total of N10.9 million to fraud and forgeries cases in first six months of 2017.

The lender between January to June reported 32 cases of fraud that involved N9.2 million Stolen/forged Instrument while staff perpetrated nine cases that cost the bank N1.1 million.

Other related fraud cases cost Zenith Bank a whopping sum of N616.7 million.

The Bank disclosed that Internet banking fraud increased significantly to 66 cases from 51 cases reported in prior half year of 2016, to undermined online threat financial transactions in the country is facing as Central Bank of Nigeria (CBN) continued to drive cashless policy.

Zenith Bank in its report available to InsideBusiness online disclosed that 19 ATM/Electronic frauds were reported in first six months of 2017 as against 11 reported in first six months of 2016.

However, the Bank lost N9 billion to fraud and forgeries cases in first six months of 2016 as most cases were perpetrated by Staff that work in the bank.

Fraud and forgeries cost the financial institution N9 million in 2016 as staff of the bank were involved in four fraud cases that cost the Bank N7.7 million.

Also for 2016, Internet banking cases increased significantly to 151 as against 80 reported in 2015 while the bank lost N1.3 million.

Early in the month, The Nigerian Deposit Insurance Corporation (NDIC) had disclosed that reported fraud cases, forgeries and outright theft that involved commercial banks staff rises to N26.7 billion in two years.

According to NDIC, reported fraud cases closed 2016 at N8.68 billion as against N18.02 billion reported in 2015.

The commission also disclosed that actual losses to the nation’s banking industry dropped by 24.29 per cent from N3.17 billion in 2015 to N2.40 billion in 2016.

The report by NDIC stated that level of attempted cases of frauds and forgeries by commercial banks staff declined by N0.329 billion or 11.94 per cent from N2.756 billion in March 2017 to N2.427 billion in June 2017.

The commission said fraud and forgeries rose by 36.42 per cent from 12,279 cases in 2015 to 16,751 cases in 2016, the reduction in the rate of successful fraud incidences and actual losses was an indication of improved regulatory/supervisory oversight, increased vigilance by banks and the deployment of improved security architecture in the banking industry


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