As the Nigerian financial system continues to
grapple with the rising cases of frauds and
forgeries and the attendant threats to banking
operations, the Nigerian Deposit Insurance
Corporation (NDIC) has disclosed that 64 per cent
of such fraudulent activities were traced to
temporary staff member of banks in 2014.
The shocking revelation which promises to elicit
reactions of Nigeria’s labour unions was made by
the Managing Director/Chief Executive, Nigerian
Deposit Insurance Corporation (NDIC), Alhaji
Umaru Ibrahim, in Ilorin last week.
Speaking at the just concluded seminar for
business editors and financial journalists, the
NDIC helmsman regretted that in spite of the
modest improvement recorded in the adoption of
electronic payment system in recent times, it is
worrisome that the banking system had
continued to record very high incidences of fraud
and forgeries in recent years. And according to
him, a category of workers in the bank including
temporary or contract staff perpetuated 64 per
cent of such heinous crimes.
To underscore the seriousness of the situation,
Ibrahim disclosed that “A total of 10,612 of such
cases were reported in 2014 as against 3,786
cases in 2013, which showed an increase of 183
per cent. The amount involved in 2013 was
N21.80 billion as against N25.61 billion in 2014,
which was a 17.5 per cent increase with expected/
actual loss increase from N5.76 billion in 2013 to
N6.19 billion in 2014.”
Ibrahim explained that the types and nature of
frauds and forgeries were largely web-based
(online banking)/ATM card related, fraudulent
transfer/withdrawal of deposit frauds and
suppression of customer deposits among others.
He added, “It was also discovered that temporary
staff, clerks and tellers accounted for 64 per cent
of the frauds and forgeries in 2014, which
required urgent attention to improve the
electronic payment controls, IT Security, human
capital and integrity profiling as well as motivation
of staff.”
He pointed out that Section 35 and 36 of the NDIC
Act, 2006 had mandated all deposit-taking
financial institutions to send returns on frauds,
forgeries and other financial malpractices to the
corporation on monthly basis.
According to the NDIC boss, banks are also
expected to notify the corporation on any
member of staff that has been dismissed or have
their appointments terminated or advised to
retire on grounds of financial infractions.
Ibrahim, however, said the corporation, in
collaboration with the Central Bank of Nigeria,
had embarked on various public awareness
initiatives with a view to drastically reducing the
percentage of Nigerians who have no access to
any form of financial services from 39 per cent to
20 per cent by 2020.
Corroborating the NDIC’s claims, an official of the
Economic and Financial Crimes Commission
(EFCC), Mr. Ibrahim Shazali, noted that Nigerian
banks, like their global counterparts, experience
more external than internal fraud.

Read the detail ... http://www.thisdaylive.com/articles/ndic-banks-contract-staff-responsible-for-64-of-frauds-forgeries-in-2014/223656/

Cc lalasticlala seun sheriffc

Hope they make it up to 100% this year...

Monkey dey work Baboon dey chop...

Awww NDIC equally forgot to include that contract staffs contribute about 80% to the workforce of every money bank iin Nigeria tday.

The earlier banks increase their salary the better for em all that how dey will be shifting blames to the innocent n vulnerable