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Nigerians Lost N2.19bn To Fraud In 2016 – Report


A report by the Nigeria Electronic Fraud Forum (NEFF), which was on Wednesday showed that electronic payment space transaction fraud rose by 82 percent in 2016 with an estimated N2.19 billion lost to cyber criminals.

The annual report for 2016 titled: “A Changing Payments Ecosystem: The Security Challenge”,  noted that “the industry recorded about 82 percent increase in the reported fraud case, when compared to 2015 and over 1200 percent compared to 2014.”

However, it noted that “despite the 82 percent increase in the reported fraud cases, with an estimated N2.19 billion loss to fraud, the industry was able to reduce fraud by 2.7 percent, when compared to the 2015 figure.”

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A breakdown of the fraud, according to various payment channels, revealed that N511.1 million frauds occurred across the counter, N464.5 million through Automated Teller Machines (ATMs), N320 million through Internet banking, and N243.3 million through Point Of Sale (POS) terminal.

Further analysis also revealed that mobile banking saw N235.1 million frauds, eCommerce N132.2 million, web fraud N190.9 million, Kiosk N10.1 million, Cheques N4.5 million and N190.9 million through other platforms not categorized.

Aggregately, electronic platforms had the highest level of fraud with 77 per cent, while the non-electronic platforms saw 23 per cent fraud cases.

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Comparing the attempted fraud against the actual loss, the industry was able to recover 49.7 percent of the total amount attempted by these fraudsters within the years” the report stated adding that these figures informed us that there are more attempts on yearly basis with different innovation tricks to take advantage of the system.

The report said looking ahead in 2017, the financial industry as a whole must cooperate to ensure a wider gap exists between the attempted fraud and actual loss

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