Insider dealing in Zenith Bank Plc increased significantly in 2017, as staff committed 11 fraud and forgeries cases that worth N11.6 million, against reported four staff fraud, forgeries that worth N7.7 million in 2016.
In our correspondent findings, customers impersonation fraud and forgeries cases rocked the bank in 2017, followed by staff perpetrate.
The lender in 2017 reported 166 impersonation cases, valued at N12.8 million.
Stolen/Forged Instrument of Zenith Bank in 2017 was N8.6 milling with 34 cases and 20 ‘others’ related fraud and forgeries was valued at N1.6 million.
The Bank in 2017 reported 39 Automated Teller Machine/Electronic frauds as against 18 ATM/Electronic fraud reported in 2016.
Internet fraud however, reduced in 2017 to one case from 151 cases reported in 2016 that worth N1.3 million.
The Head, communications and public affairs, NDIC, Mr. Mohammed Ibrahim in a statement said, the commission is to investigate some banks for the inadequate rendition of returns to the Corporation on instances of fraud, forgeries, and cases involving members of their staff who were either dismissed or had their appointments terminated on grounds of fraudulent activities.
According to him, section 35 and 36 of the NDIC Act No. 16 of 2006 (as amended) requires all Deposit Money Banks (DMBs) to submit monthly information/returns on fraud and forgeries to the Corporation.
“The NDIC made the decision in the light of the most recent report from its Off-Site Supervision of the DMBs which revealed the number of fraud cases attributed to internal abuse by staff of banks increased from 231 in 2016, to 320 in 2017, or 38.53per cent above the figure reported for the previous year.
“The Corporation attributes the improvement to additional internal control measures adopted by the banks in the wake of the proactive corrective measures taken to ensure their compliance with good corporate governance principles.
“However, despite the Fidelity Insurance Cover taken by banks to address fraud perpetrated by staff, there is still need for the banks to further enhance their internal control and security measures, as the rising trend of E-Channels (Online banking & Card-related) fraud and forgeries in the Industry remains a serious cause for concern to the Corporation,” the statement signed by NDIC spokesperson added.
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