Nigerian banks lost about N3.3 billion to frauds associated with electronic transactions in 2017.
The President, Chartered Institute of Bankers of Nigeria, Prof. Segun Ajibola, disclosed this to our correspondent over the weekend in Lagos.
He explained that the alarming rate of electronic fraud is becoming worrisome and advocated an effective, enterprise risk management framework to the financial institutions as a stop-gap measure.
Ajibola said, “If you go through the audited finances of the banks annually, you will see the figures, which are not hidden.
“I will strongly advocate and recommend the enterprise risk management solution, as this is the process of planning, organising, leading and controlling the activities and operations of the banks, in order to minimise the effects of the risk associated with electronic fraud losses on their capital and earnings.”
While he admitted that Information Technology is the arrowhead for innovations such as the automated teller machines and electronic banking, the CIBN boss insisted that financial institutions in the country must upgrade their IT equipment to be able to fight the menace.
I will strongly advocate and recommend the enterprise risk management solution, as this is the process of planning, organising, leading and controlling the activities and operations of the banks, in order to minimise the effects of the risk associated with electronic fraud
“I suggest they should endeavour to train their staff and send their information technology staff on local and international training to widen their knowledge on this electronic fraud detection, modus operandi and how well to detect and stop it,” he added.
According to him, the time has come for a proper legislation from the National Assembly on electronic frauds in banks and other financial institutions to serve as a deterrent to others who are perpetually in the habit of hacking into customers’ accounts and records.
“There is also the need for the Central Bank of Nigeria to increase its surveillance on this area of fraud in the banking institution, to avoid collapse. This fraud area is on the rise from year to year, based on the bureau of statistics’ report,” he added.
