Fidelity Bank Chief Tasks NeFF on Solutions to e-Fraud Threats

By Modupe Gbadeyanka

The Nigeria Electronic Fraud Forum (NeFF) has been tasked to come up with solutions to the challenges posed by electronic fraud to the financial system.

This charge was given by the chief executive of Fidelity Bank Plc, Mrs Nneka Onyeali-Ikpe, at the third quarter general meeting of the group in Lagos recently.

The respected banker, according to Vanguard, decried the threats posed by e-fraud to the banking sector, its customers and others in the country, noting that efforts must be made to address these challenges.

Mrs Onyeali-Ikpe explained that e-fraud is carried out online to exploit individuals and business entities for financial gain, listing examples as phishing, advanced fee fraud (419), online auction fraud, identity theft, tech support scams, online romance scam, investment scam, business email compromise (BEC), ransomware, online rental schemes, pyramid schemes, and click fraud.

Highlighting the rising trend of e-fraud in the country and the associated challenges, the Fidelity Bank boss said, “According to data released by the NIBSS, the value of electronic payment transactions in Nigeria increased by 298 per cent year-on-year from N34.04 trillion in Q1 2022 to N135.52 trillion in Q1 2023.

“As technology continues to advance at an unprecedented pace, our reliance on digital transactions has grown exponentially.

“However, with this rise in digital interactions, the threat of e-fraud has become a significant challenge affecting individuals, businesses, and industries alike.

“The banking industry lost a total of N14.3 billion to electronic fraud in 2022, up from the N12.7 billion reported in 2021. As of Q1 2023, the total fraud loss was N5 billion, according to the NIBSS Annual Fraud Landscape reports.

“The mobile channel is the most exploited channel by fraudsters in 2021 and 2022, with 42,821 and 45,090 reported fraud records, respectively. The total fraud count in 2021 was 123,918, and 101,668 in 2022.

“E-fraud has permeated multiple industries, spanning from banking and finance to e-commerce and beyond. These cybercriminals leverage advanced methods to exploit vulnerabilities, gaining unauthorised access to crucial data and funds. The repercussions of e-fraud are not limited to financial losses; they also extend to eroding trust and eroding brand reputation.”