CBN attributes decline to the efforts of the EFCC in prosecuting fraudstersArticle | July 18, 2012 – 12:41am | By Eki Toju
The Central Bank of Nigeria (CBN), on Tuesday, disclosed that the number of reported cases of attempted or crystalised fraud in the banking industry declined in 2011.
The decline was attributed to the efforts of the Economic and Financial Crime Commission (EFCC) in prosecuting bank fraudsters, of which close to 1,000 may have been jailed in the last three years.
Last week in Abuja, the commission arraigned a former staff of FCMB Plc. over a N52 million fraud. The accused forged the signature of a client to withdraw the amount from his account.?
CBN said that there were 2,527 reported cases of attempted fraud or forgery, involving N29.5 billion, as against 5,960 cases involving N19.7 billion and $19.2 million in 2010. Of this amount, the actual loss to the banks was N5.8 billion,?compared with N11.4 billion and $10.98 million at end-December 2010.
The reduction in actual loss was accounted for by improvements in risk management practices in the banking sector.?
The fraud cases, according to the apex bank were perpetrated through? various means, including pilfering and theft, suppression and? conversion of customer deposits, illegal funds transfer and fraudulent ATM withdrawals, among others.?
The CBN said it received 1,926 complaints at the end of 2011, of which 1,510 were treated, resulting in a refund of N4.34 billion by banks, compared with 1,526 complaints and a refund of N2.20 billion in?2010. Most of the complaints bordered on conversion of invested funds,?unauthorised and fraudulent withdrawals from customer accounts, excess charges, and staff matters.?
The CBN had informed of strengthening its Bank consumer protection activities in the year.
One of the strategies was the development of a consumer protection framework, which included consumer literacy and education, complaints management, fair practices and collaboration with stakeholders, amongst others.?
In order to enhance consumer education and promote consumer rights on?financial transactions with banks and other financial institutions in Nigeria, the Consumer Protection Office was mandated to address customer complaints.
The apex Bank also issued relevant circulars to the banks and? collaborated with the Consumer Protection Council (CPC) on complaints? management, consumer education and enlightenment, and information sharing.
