Fidelity Bank CEO, Onyeali-Ikpe urges solutions to tackle e-Fraud challenges

The Managing Director and Chief Executive Officer of Fidelity Bank Plc, Nneka Onyeali-Ikpe has urged the Nigeria Electronic Fraud Forum (NeFF) to devise effective measures to counter the rising challenges posed by electronic fraud in the financial system.

Speaking at NeFF’s 3rd quarter general meeting in Lagos, Onyeali-Ikpe highlighted the pressing need to address electronic fraud, a range of online activities that exploit individuals and businesses for financial gain.

Examples of e-fraud she cited included phishing, advanced fee fraud (419), online auction fraud, identity theft, tech support scams, online romance scams, investment scams, business email compromises, ransomware attacks, online rental schemes, pyramid schemes, and click fraud.

Emphasizing the surge in e-fraud incidents in Nigeria and the associated challenges, the CEO stated, “According to data released by NIBSS, the value of electronic payment transactions in Nigeria increased by 298% YoY from N34.04 trillion in Q1 2022 to N135.52 trillion in Q1 2023.”

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Onyeali-Ikpe noted the rapid advancement of technology and the corresponding surge in digital transactions. However, this digital growth has also brought about an alarming rise in e-fraud, impacting individuals, businesses, and industries across the board.

“In 2022, the banking industry incurred a total loss of N14.3 billion due to electronic fraud, up from the N12.7 billion reported in 2021. As of Q1 2023, the total reported fraud loss was N5 billion, as per the NIBSS Annual Fraud Landscape reports,” she revealed.

The CEO highlighted that mobile channels were the most vulnerable to exploitation by fraudsters in both 2021 and 2022, with 42,821 and 45,090 reported fraud records, respectively. The total fraud count in 2021 was 123,918, increasing to 101,668 in 2022.

Onyeali-Ikpe underscored the widespread impact of e-fraud, which permeates multiple industries, from banking and finance to e-commerce and beyond.

These cybercriminals deploy sophisticated techniques to exploit vulnerabilities, gain unauthorized access to critical data, and siphon funds. The consequences of e-fraud extend beyond financial losses, eroding trust and tarnishing brand reputations.