Access Bank reportedly lost ₦6.15 billion in 2023 to fraud. In 2023, Access, which is Nigeria’s biggest bank, said it lost ₦6.15 billion to fraud and forgery, a big jump from ₦1.44 billion the year before.
Access Bank Lost ₦6.15 Billion to Fraud
Fraudulent transfers, withdrawals, and reactivation made up 80% of the ₦6.15 billion losses for Access Bank in 2023. Embezzlement accounted for 29%, which included cash theft and other tricky tactics. Electronic fraud and USSD scams made up 9%.
In 2023, there were 6,771 attempts at electronic fraud and USSD scams, involving ₦2.69 billion. Despite the high number of attempts, the actual loss was only ₦92.2 million. This was a significant improvement from the previous year, where electronic fraud accounted for 80% of all fraud cases, with losses reaching ₦1.15 billion.
How Access Bank Combated Electronic Fraud
While Access Bank hasn’t disclosed the exact measures they took to combat electronic fraud, their efforts seemed to have paid off as the incidents reduced significantly.
However, fraud remains a widespread issue in the Nigerian banking sector. Reports show that in the second quarter of 2023 alone, Nigerian banks lost ₦5.79 billion to fraud, a sharp increase from ₦472.28 million in the first quarter.
Other Fintech Platforms to Face Challenges in the Industry
Startups like Union54 faced challenges with chargeback fraud, resulting in losses that could have exceeded $1 billion. Interswitch, an established payment platform, also reported losses of ₦30 billion to chargeback fraud.
Experts And Agencies Working Together To Combat Fraud
In response, industry players like the Nigerian Electronic Fraud Forum (NeFF), the Association of Mobile Money and Banking Agents of Nigeria (AMMBAN), and the Nigeria Inter-Bank Settlement System (NIBSS) are working together to develop strategies to combat fraud.
Why Collaboration among Banks and Fintechs Is Crucial
While fraud remains a concern, collaboration among banks and fintechs is crucial in mitigating these risks and protecting customers’ funds.
Financial institutions, like Access Bank, are facing challenges with Point-of-Sale (POS) fraud. In the second quarter of 2023, around 2,000 cases of POS fraud were reported, resulting in losses totaling ₦428 million.
This was a slight decrease from the previous quarter, which recorded losses of ₦450 million.
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