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Frauds In Banks And Banks In Fraud - Business - Nairaland

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How Bank Staff-Assisted Frauds Affect Bank Customers’ Deposits / CBN & Bankers Committee Suspends Lay-offs In Banks / How Banks And Bankers Are Getting Richer Through Foolish Dead Husbands (2) (3) (4)

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Frauds In Banks And Banks In Fraud by Omooba77: 10:28am On Feb 07
Fraud is a daily recurring word in every daily newspaper in Nigeria. A Nigerian newspaper seems incomplete without a report on fraud or fraudulent activity in public or private enterprises. It is so common that, without deliberate monitoring, you may not even notice you have just read about it. Thus, it has become a way of life. I was in search of another word to go with ‘bank’ in the title of this piece to attract attention but could not find a more appropriate word. Attaching fraud to banks might attract the required attention, but banks themselves are closely knit with fraud, given what havoc they have rendered on some individuals or enterprises. I, therefore, thought that if I doubled the two words – fraud and bank – it might just be more appealing to readers.

Fraud does not offend the sensibilities of many Nigerians anymore because it is like a national toga and Nigerian banks are part of the environment. To behave differently is to be ‘un-Nigerian.’ Or, how do you explain billions of naira spent on the refineries’ repairs yearly, including 2021 without positive results and nobody has been sent to jail or being probed on how such funds did go into the corruption drain pipe? How does the Federal Government of this country insist arrogantly on spending N3 trillion on fuel subsidy in 2022, even when there are options to look at how domestic production of fuel could save the country more than half of the amount; just because some people feel they must spend or benefit from spending the money? To expect stakeholders in the Nigerian banks to behave differently is to treat them as the saints that they should be but are not.

Bad debt and fraud in banks have always been part of the banking problems and have both grounded some banks globally. Actually, the link between bad debt and fraud is thin. Many underhand businesses that already compromise repayment of loans would have taken place before loans deals were concluded. That is why banks are reluctant to publish the names of debtors, and when published, nothing concrete happens in terms of settling the debt. Of course, non-payment of debt is a fraudulent act in itself but it was not so treated in the ongoing discussions by the House of Representatives.

The Bank Employee etc (Declaration of Assets) Act, Cap. B1, Laws of the Federation of Nigeria 2004, had prescribed a 10-year jail term in addition to forfeiture of assets for bank staff found to be involved in fraud. The House of Representatives is now recommending that the jail term be increased to 20 years in addition to forfeiture of assets. The bill has passed the second reading. The area of interest here is Section 7(2) of the Act, which states inter alia ‘Any employee guilty of an offence under the section shall, on conviction, be sentenced to imprisonment for twenty years and shall, in addition, forfeit the excess asset or its equivalent in money to the Federal Government.” Honourable Francis Waive (Ughelli North/South/Udu), who led the debate on the bill acknowledged the challenges posed by internet fraud, including yahoo boys’ activities, and their effects on banking. He hoped that the amendment will not only help improve the data bank of the banks but, importantly, serve as a deterrent to other staff and reduce the surge in nefarious activities. There is supposed to be simultaneous punishment for customers too.

It is no news that bank staff commit fraud and do go to jail. Since the introduction of the Act, now being amended, in 2004, many bank staff have gone to jail on the basis of it, and that ought to have deterred other ones, but not so. Hence the amendment. Will this stop fraud in banks? It will not. We have to investigate what is fueling the action and tackle the root headlong with a view to reducing, if we cannot eliminate, fraud. We need to understand that fraud in banks is also fueled by banks engaging in fraudulent acts against its staff and customers.

Most young staff we see in the banking hall are casual staff. These young ones grow with the bank over time and are conscious of the fact that they can be thrown out of the banking business anytime and without adequate compensation. Many of these youths, who have put in over ten years, were from time to time sacked or relieved of their jobs unceremoniously. This has been the trend of events over the last 20 years. The issue of the dedication of staff is very important for the growth of the enterprise they work for. Dedication itself is hinged on a number of factors, including job security and staff welfare.

Casual staff have no job security and they would be concerned about how to secure themselves against an uncertain future. In a bank setting, where their daily task is dealing with funds, the first idea is how to secure their future with such funds. This is a major source of increasing fraudulent activities in the banks. The banking management has effectively discouraged the activities of labour unions in the banking system so that staff would have no voice to fight for their rights and can be treated in a use-and-dump manner. The House of Representatives will have to look into this unholy attitude of worker casualisation to protect the workers, the banks and the customers.

The fraudulent activities of the banks towards customers also need attention just as customers fraudulent acts on the banking system. The House will have to investigate why banks should be imposing charges on customers on virtually all transactions. The banks are aware that their services on e-transactions are not near perfect but willfully play games with customers. Hitherto and ordinarily, customers were allowed to withdraw up to N20,000 from the ATM machines owned by other banks but most of them now allow withdrawals of only N10,000 so that the customer can get to the mandatory three withdrawals from the other machine and start paying penalty, which is likely to be paid for the rest of the month because of inefficient internet provision or service provider.


One of the banks I use regularly always deduct charges for the transfer of funds to another person’s account with the same bank such that I have to suspend using it as my main business account. Sometimes a bank would deduct card maintenance charges, even when you did not use the account for a month. Some other times, you lose your card in the ATM machine or there are multiple deductions, either may take you days to recover, if you do not have to eventually forgo your money. You can also imagine receiving embarrassingly smelly money from the ATM, yet one finds crisp notes with currency hawkers at parties! Some banks would even send you birthday wishes on wrong dates for whatever reason you may never know.

What is the House of Representatives take on all those big men, who have been found defrauding banks, causing huge bad debts that do put some banks in distress? Such people brought down the defunct National Bank, like many other banks in that category, in the 1990s. Some names were published but we never knew what punishment they faced except that some of them contested elections in later years and won. Some names have been published recently and nothing seems to be happening beyond the publication of the names. I suspect that they are going to contest the next elections and win. So, the compromise to defraud is not just coming from within the banking system but also from outside.

Why would such acts not embolden a young man or woman, who has worked with good qualifications in a bank for over 10 years as casual labour, unsure of when he or she will be thrown into the job market, to take advantage of the lapses to engage in fraud. While the House is trying to prevent fraud in banks, it should also prevent banks from engaging in fraudulent practices. The banks are supposed to be embodiments of truth, trust and reliability. The bankers have to search themselves for restitution; the Chartered Institute of Bankers of Nigeria has the onerous task of cleansing this odious table while the Central Bank of Nigeria should return to central banking instead of the present retail banking and launching cassava or rice pyramid.

https://punchng.com/frauds-in-banks-and-banks-in-fraud/

19 Likes 9 Shares

Re: Frauds In Banks And Banks In Fraud by Omooba77: 10:41am On Feb 07
Some frauds men are even here, promising to deliver.....

6 Likes 2 Shares

Re: Frauds In Banks And Banks In Fraud by Jostoman: 10:43am On Feb 07
All the Bank in Nigeria are the real Yahoo Yahoo because the dubious money those thieves that called themselves bank deduct from our account everyday is enough to pay China the money borrow from them by Nigeria Yahoo Yahoo government.

53 Likes 3 Shares

Re: Frauds In Banks And Banks In Fraud by uthlaw(m): 11:04am On Feb 07
Those bankers are the real yahoo yahoo after government!

14 Likes 2 Shares

Re: Frauds In Banks And Banks In Fraud by Omooba77: 12:19pm On Feb 07
uthlaw:
Those bankers are the real yahoo yahoo after government!

Nigeria is not running on any system, it is free for all.... Lalasticlala.

13 Likes 7 Shares

Re: Frauds In Banks And Banks In Fraud by Crafteck1: 12:26pm On Feb 07
We are in trouble in this nation, people are stealing left and right, people police/taylors that are meant to catch them are also stealing what the theives stole and stealing much more, no one is checking activities of ndlaa and etcc, we are in trouble.

4 Likes 2 Shares

Re: Frauds In Banks And Banks In Fraud by alphaconde(m): 12:26pm On Feb 07
what i know about fraud is that

When the money is small the fraudster is treated like a criminal

but when the money is big the case is different.

45 Likes 4 Shares

Re: Frauds In Banks And Banks In Fraud by FreeStuffsNG: 12:26pm On Feb 07
The banks are trying, we must support them by exposing the bad eggs in the system.

2 Likes

Re: Frauds In Banks And Banks In Fraud by inoki247: 12:26pm On Feb 07
ok
Re: Frauds In Banks And Banks In Fraud by Rootprof(m): 12:27pm On Feb 07
The banking sector needs urgent reform. Some staffs are lazy and the nonchalant attitude of some bankers as rendered some customers broke for life. How on earth is it hard to track down someone that defraud using his/her bank account The only thing they're very quick in doing is receiving money.
Most ATMs malfunction and hardly dispence on weekends most especially Sunday.

8 Likes 2 Shares

Re: Frauds In Banks And Banks In Fraud by NobleSeed(m): 12:27pm On Feb 07
put the money for house e no safe put am for Bank problem embarassed
Which kind whalala be this?

12 Likes 2 Shares

Re: Frauds In Banks And Banks In Fraud by cremedelacreme: 12:27pm On Feb 07
The House of Reps members are recommending an increase from 10 to 20 years for Bank staff involved in fraud. But if I may ask, how many years are they recommending for our thieving politicians? A banker that commits fraud of just 500K will spend 20 years in jail while politicians that loot 500 Billion will go scot free. Bunch of hypocrites.

19 Likes 2 Shares

Re: Frauds In Banks And Banks In Fraud by Mko123(m): 12:27pm On Feb 07
Q
Re: Frauds In Banks And Banks In Fraud by MikeMicheal(m): 12:28pm On Feb 07
Why do yahoo, when you can do gmail?

If you dont get it, forget it. grin

5 Likes

Re: Frauds In Banks And Banks In Fraud by Rayjnr: 12:29pm On Feb 07
I think it's high time a law be enacted which will make banks liable if customers monies disappear from their account unnecessarily.
Cuz when you open an account as soon as you leave the bank premises fraudsters start calling you.
My question is , who gives them customers details

17 Likes 3 Shares

Re: Frauds In Banks And Banks In Fraud by baike: 12:29pm On Feb 07
Every body na thief who police catch na be criminal cool

2 Likes 1 Share

Re: Frauds In Banks And Banks In Fraud by Chibuzoc(m): 12:29pm On Feb 07
That's was how the keep deducting money even when there ussd code is not connecting angry

3 Likes 2 Shares

Re: Frauds In Banks And Banks In Fraud by xtremecr8: 12:29pm On Feb 07
Our own experience was awful in the hands of First Bank Plc and we keep appealing to well meaning Nigerians to help us by prevailing on FBN to pay us for our IP and sweat.

First Bank Plc is yet to pay us for creating and designing the125th Year Anniversary logo we created and designed for them to commemorate their 125th Year Anniversary.

Here's the original thread here on Nairaland:
https://www.nairaland.com/5591806/how-first-bank-did-not

We will continue to demand for payment for our hardwork designing this iconic 125th Year Anniversary logo for you, First Bank Plc.
You have not paid us a dime and you have used our creative.

We appeal to all well meaning Nigerians with conscience to prevail on First Bank Plc to pay us for creating and designing their 125th Year Anniversary logo.

https://m.facebook.com/ReportYourself/videos/723288038412109/?refsrc=https%3A%2F%2Fm.facebook.com%2FReportYourself%2Fvideos%2F723288038412109%2F&_rdr
(Modify) (Quote) (Report) (Share)

4 Likes 2 Shares

Re: Frauds In Banks And Banks In Fraud by splashbaby(m): 12:30pm On Feb 07
50% of present crops of bank staffs in Nigeria are criminals. They sell information of bank customers to criminals. The quickest way to lose your money is to use Nigeria bank.

4 Likes 3 Shares

Re: Frauds In Banks And Banks In Fraud by brandmix: 12:30pm On Feb 07
angryFraud starts from CBN

3 Likes 2 Shares

Re: Frauds In Banks And Banks In Fraud by Angrygoat: 12:30pm On Feb 07
Na everywhere. Yesterday,I ran out of fuel and my rx Jerked twice,meaning fuel left wasn't less than 5 litres, quickly just like a wounded cat I found myself somewhere I wasn't familiar with,and branched a nearby gas station,bought 3k just to do small top up, suddenly after strand moving,I noticed my tank was on E, I was confused and I have already left the station, well within 10 mins,i got to Mobil and did 5k. U won't believe my 3k,nw just air dem blow for my tank. God,i have sworn to start carrying Benson and hedges pack with lighter, make I see any bastard wey wan blow air for my tank,when tank don enter 5 litres (reserve,E,Yellow light illumination for dashboard). Dem play me mugu on a Sunday,when I was In a good mood. GOD WHY u never gimme mp5. Why. Why. Is it till I enter yankee.

8 Likes 2 Shares

Re: Frauds In Banks And Banks In Fraud by Fyie: 12:32pm On Feb 07
.
Re: Frauds In Banks And Banks In Fraud by DamnnNiggarr: 12:32pm On Feb 07
shocked

That head line is a palindrome

8 Likes 2 Shares

Re: Frauds In Banks And Banks In Fraud by obembet(f): 12:33pm On Feb 07
Here we go

2 Likes 1 Share

Re: Frauds In Banks And Banks In Fraud by bigdammyj: 12:36pm On Feb 07
Okay
Re: Frauds In Banks And Banks In Fraud by Investorozay: 12:36pm On Feb 07
keep your money in USDC , lock it in a ledger wallet
thank me later
saving money in naija currency na waste of money

3 Likes 2 Shares

Re: Frauds In Banks And Banks In Fraud by nairaman66(m): 12:37pm On Feb 07
Omooba77:


Nigeria is not running on any system, it is free for all.... Lalasticlala.
Re: Frauds In Banks And Banks In Fraud by Curious346: 12:41pm On Feb 07
Hnmmm

Bring back soludo
Bring back Lamido.


Our banks do not give loans, but yet declare humongous profits..
All they do is steal and pilfer innocent depositor funds..

3 Likes 2 Shares

Re: Frauds In Banks And Banks In Fraud by nkemoma(m): 12:43pm On Feb 07
What kinda long post is this?

1 Like 1 Share

Re: Frauds In Banks And Banks In Fraud by BarrElChapo(m): 12:52pm On Feb 07
angry
Re: Frauds In Banks And Banks In Fraud by GardenOfGod(m): 12:53pm On Feb 07
APC is an example of a fraudulent party cheesy
Omooba77:
Some frauds men are even here, promising to deliver.....

2 Likes 1 Share

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