Over the past two years, a staggering 110 bank employees, including top executives and junior staff, have been dismissed for involvement in fraud-related cases, according to reports by the Financial Institutions Training Centre (FITC). FITC’s findings indicate a concerning upward trend, with only four bank officials being fired for fraud in Q2 2021, rising to 11 in Q2 2023, marking a 175% increase.
The reports highlighted the cases of fraud, the number of employees sacked, and the amounts lost due to fraudulent activities. The highest number of employees sacked in a single quarter occurred in Q3 2022, totaling 20. The individuals involved in these cases were linked to a combined 967 fraud cases. These cases covered various forms of fraud, including mobile fraud, computer/web fraud, and point-of-sale (POS) related fraud.
While the reports reflect an alarming rise in fraud-related incidents within the banking sector, they also underscore the necessity for financial institutions to reinforce security protocols and employ advanced fraud detection systems. FITC recommends implementing measures such as multi-factor authentication, robust encryption techniques, and regular security updates to prevent unauthorized access and mitigate fraudulent activities.
Despite the overall increase in cases, Nigerian banks are urged to prioritize staff education and take measures to deter and detect fraud, emphasizing the importance of both internal and external security measures.