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Fraud Has Emerged As a Huge Risk Vector in Nigerian Banking and Fintech

Fraud Has Emerged As a Huge Risk Vector in Nigerian Banking and Fintech

Thanks Access Bank for being bold to make what everyone knows PUBLIC: “Nigerian multinational commercial bank Access Bank, in its latest 2023 financial report, reportedly lost N6.5 billion from fraud and forgery, up from N1.44 billion the previous year. Fraudulent transfers, withdrawals, and reactivation caused 80% of the loss, followed closely by embezzlement at 29%, which included cash theft, dry posting, cash theft, as well as electronic fraud, and USSD (9%).”

Yes, fraud and forgery have scaled in the Nigerian banking and financial sector. In short, I posit that more than 90% of fintech companies which have collapsed or are dying could be attributed to fraud. And in this fraud vector, NIN/BVN impersonation ranks #1.

As a result of the dimensions of fraud, Tekedia Capital has been investing in KYC/security related companies as we model that such domains will see massive growths in Nigeria and Africa. The NIN/BVN fraud is so novel that from the Police to EFCC, confusion is everywhere as they cannot even help banks and fintechs. 

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It is like what bandits do in the physical domain where men will kidnap dozens of people and you ask, “how possible in this age of mobile?”,  we have a digital equivalent. With Access Bank making this public, I am confident that everyone will know that a battle is set. In the past, they could have put it under operating expense or bad loans or whatever, but saying it is fraud, solutions will come faster!

Simply, we need an efficient digital Police in Nigeria with the right tools because from banks to fintechs, fraud has evolved as a huge risk vector now. Of course, this is not just happening only in Nigeria; in the United States, banks are losing billions of dollars on digital related frauds.

Access Bank Releases 2023 Financial Report, Losses N6 Billion to Fraud And Forgery


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