70% of fraud traceable to banking sector – EFCC

The Economic and Financial Crimes Commission (EFCC) has said 70 percent of financial crimes in Nigeria can be traceable to the banking sector, warning the bank auditors to stem the tide as soon as possible.

The anti-graft agency also bemoaned the growing rate of loss bank customers incur due to insider-related fraud comprises outright stealing of customers deposits’ authorised loan facilities, forgery and several other criminal practices.

The Chairman of EFCC, Ola Olukoyede, said this when he spoke at the 2024 Annual retreat of the Association of Chief Audit Executives of Banks in Nigeria (ACAEBI) in Abuja.

The EFCC’s boss frowned at the rate of fraudulent activities associated with the local banking industry.

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The anti-graft czar, who spoke through the Director, Internal Audit of the Commission, Idowu Oluwole-Apejoye, noted that banking fraud across the country often has either insider or outsider enablers.

Olukoyede called on Audit Executives in banks across the country to be more vigilant and assertive in tackling financial crimes in the banking sector.

“Broadly speaking, banking fraud in Nigeria is both insider and outsider-related. The insider-related fraud comprises outright stealing of customers deposits’ authorized loan facilities, forgery and several other kinds of unhealthy and criminal practices.

“The outsider-related ones include hacking, Automated Teller Machine, ATM, fraud, conspiracy among others. And the absurd one is when there is collaboration between the both of them,” he said.

He called for concerted efforts by relevant authorities and professionals, especially bank auditors to prevent and detect fraudulent practices in the industry.

“70 per cent of financial crimes in Nigeria is traceable to the banking sector. As gatekeepers on responsible financial conduct, adherence to regulations, and effective functioning of the financial services industry.

“As you retreat, use this opportunity to review developments in the financial sector of our nation and offer sound recommendations to the EFCC on how the rising cases of financial crimes can be curbed in our banks.

“I also call on you to always approach the Commission on any issue that you consider germane in addressing corruption not only in the financial sector but in all other areas of life in our dear country,” Olukoyede said.