*Olayinka Ijabiyi, Acting Group Head of Marketing and Corporate Communications at First Bank of Nigeria Limited, denies any fresh, massive N7 billion fraud incident in the financial institution, stating the bank 鈥榗ategorically states that the story is entirely unfounded and not supported by any factual evidence鈥�

Isola Moses 绿帽献妻

First Bank of Nigeria (FBN) Limited has denied the leading commercial bank’s involvement in any fresh, massive fraud incident to the tune of N7 billion from customer accounts by unknown persons.

绿帽献妻 gathered that an individual with direct knowledge of the matter disclosed that three other persons who solicited anonymity because of the sensitivity of the company matters confirmed the incident.

It is also noted the scope and complexity of the fraud incident, again, highlighted the increasingly sophisticated nature of fraud in Nigeria鈥檚 financial services sector, TechCabal report said.

First Bank: Reported N7bn fraud story entirely unfounded, not supported by any factual evidence

However, First Bank has denied the report of an incident of N7 billion fraud linked to an employee of the leading financial institution in the country.

Mr. Olayinka Ijabiyi, Acting Group Head of Marketing and Corporate Communications at FBN, in a statement, said: 鈥淲e have been made aware of a recent publication by Tech Cabal containing allegations of fraud involving our institution.

鈥淲e wish to categorically state that the story is entirely unfounded and not supported by any factual evidence.鈥�

The bank鈥檚 statement also described the media report as misleading information.

Ijabiyi noted: 鈥淔or over 130 years, First Bank has built an outstanding reputation for solid relationships, good corporate governance, and a strong liquidity position, and has been at the forefront of promoting digital payments in the country with over 13 million cards issued to customers (the first bank to achieve such a milestone in Nigeria).鈥�

Reiterating the bank鈥檚 commitment to offering best and seamless services to its teeming customers, the statement noted: 鈥淥ur vision is 鈥楾o be Africa鈥檚 Bank of first choice鈥� and our mission is 鈥楾o remain true to our name by providing the best financial services possible鈥�.

鈥淭his commitment is anchored on our core values of EPIC 鈥� Entrepreneurship, Professionalism, Innovation and Customer-Centricity.

鈥淥ur strategic ambition is 鈥榯o deliver accelerated growth in profitability through customer-led innovation and disciplined execution鈥� and our brand promise is always to deliver the ultimate 鈥榞old standard鈥� of value and excellence to position You First in every respect,鈥� said the Acting Group Head of Marketing and Corporate Communications.

The financial institution further highlighted the feats it has accomplished in the Nigerian banking ecosystem and beyond over the years.

The FBN stressed with over 42 million customer accounts (including digital wallets) spread across Nigeria, UK and sub-Saharan Africa, the Bank provides a comprehensive range of retail and wholesale financial services through more than 820 business offices and over 243,400 agent locations spread across 772 out of the 774 Local Government Areas in Nigeria.

On reported N60bn fraudulent diversion, dismissal of 100 employees

It is recalled that a First Bank employee, May 2024, had fraudulently diverted about N60 billion over a two-year span before eventually being discovered.

Two people with direct knowledge of the matter at the time said the bank鈥檚 comprehensive audit affirmed the total amount the employee diverted from customers’ accounts.

The incident later led to the dismissal of 100 employees, and was thought to be connected to the abrupt exit of Dr. Adesola Adeduntan, immediate past Chief Executive Officer (CEO) of the bank.

According to two people with knowledge of the matter, First Bank has begun the recovery process and reported the case to law enforcement.

Banks and Financial Technology (FinTech) typically work with the police and courts to recover stolen funds.

It remains unclear if First Bank has taken legal action over the matter.

FITC: How Nigerian banks lose N43.6bn to fraud Q2 2024

In a related development, Nigerian banks lost N43 billion to fraud Second Quarter (Q2) 2024, but those numbers are likely underreported, a Financial Institutions Training Centre (FITC) report has said.

The FITC report disclosed the lost amount between April and June this year alone exceeded the N9.4 billion lost to fraud by the banks throughout the entire 2023.

In the recent report on Fraud and Forgeries, Quarter 2, 2024, the Q2 loss shows an 8,993 per cent increase in loss, in comparison with the N468.4 million lost in Q1 2024.

This also represents a 637 per cent increase, compared to the N5.7 billion loss recorded Q2 2023, stated the FITC.

Still, only 60 of 163 financial institutions in Nigeria reported fraud cases, according to a Nigeria Inter-Bank Settlement System (NIBSS) report.

Whereas many choose not to report incidents over fear of reputational harm, report stated.

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