10 banks responsible for 90% of frauds in banking sector - NDIC report
Category: Frauds & Scandals
March 10, 2011 by by Odidison Omankhanlen
The high incidence of massive frauds in the banking sector has been linked to the activities of 10 banks. This was contained in the Nigeria Deposit Insurance Corporation (NDIC) 2009 Annual Report released on Wednesday. But the corporation did not name the banks.
According to the report, there was a total of 1,764 reported cases of attempted frauds and forgeries involving N41.2 billion in 2009 compared with 2,007 reported cases involving N53.5 billion in the preceding year, stating that 10 banks accounted for N37.18 billion, which is higher than the 2008 figure of N34.31 billion.
Analysis of the frauds and forgeries perpetrated by the banks include: presentation of forged cheques, granting of unauthorised credits; posting of fictitious credits and fraudulent transfers withdrawals. Others are cheque suppression, loss of money to armed robbers and lodgment of stolen warrants and overdraft cheques.
The report noted that granting of unauthorized credits and perpetration of ATM frauds accounted for the largest proportion.
A further analysis showed that a total of 656 members of staff of banks were involved in frauds and forgeries during the year under review, representing an increase of about 109.58 per cent as against the previous year’s figure of 313. Of the total core operations staff such as accountants, supervisors, officers, cashiers totaled 431, thus accounting for 65.70 per cent.