Zenith Bank Plc lost over N305 million more to staff perpetrated fraud in 2018 than it did in 2017

Zenith Bank Plc records almost a 400% loss to fraud and forgery cases in 2018.
An analysis by Business Insider SSA by Pulse shows that 67% of the fraud was perpetrated by its staff.
The bank lost more than N429 million to fraud and forgery cases within the period.

Despite efforts by the regulatory authorities to curb financial fraud and clean up the banking system, Nigeria’s tier-1 bank, Zenith Bank Plc recorded almost a 400% loss to fraud and forgery cases in 2018 than it did a year before.

Posting an impressive 2018 financial report with N193.15 billion profit, an 11.99% increase from the previous year, Zenith Bank Plc lost N429 million to fraud and forgery cases.

The reported fraud and forgery incidences were mostly perpetrated by bank staff and non-bank culprits within the past year.

This is an increase of N394.35 million from N34.7 million recorded during the same period in 2017.

Zenith Bank Plc financial statements for 2018 Zenith Bank Plc financial statements for 2018 Pulse Nigeria

Business Insider Sub-Saharan Africa by Pulse's analysis of the bank’s audited result released on the Nigerian Stock Exchange (NSE) on Tuesday, February 19, 2018, show that 317 fraud and forgery cases were perpetrated during the period under review.

This shows an increase of 38 cases and almost 400% from N34.7 million posted in 2017 to N429 million in the 2018 accounting year.

Zenith Bank Plc FY 2018 Zenith Bank Plc FY 2018 Pulse Nigeria

Further analysis by Business Insider SSA by Pulse shows that 67% of the fraud was perpetrated by its staff.

It lost N316.9 million to fraud perpetrated by staff, N4.25 million to impersonation, N107.5 million to stolen and forged instrument, and N413,841 to internet banking related frauds.

In light of fraudulent activities, Nigeria's central bank (CBN) also introduced the Bank Verification Numbers (BVN) to curtain incidences of fraud and engender public confidence in the banking industry.

Analysis of Fraud and Forgeries Returns Analysis of Fraud and Forgeries Returns Pulse Nigeria

Despite the success of the registration exercise for BVNs, a lack of integrity among some staff members of banks constitutes a major security problem and contributes to the increasing the level of fraudulent activities in Nigerian banks.

20,768 fraud cases recorded among Nigerian banks between January to June 2018

According to the Central Bank of Nigeria’s (CBN) first half 2018 economic report, there were 20,768 reported cases of fraud and forgery (attempted and successful), valued at N19.77 billion.

The figure is an increase from 16,762 cases, involving N5.52 billion and $ .12 million reported in the corresponding period of 2017.

In its corporate governance report, Zenith Bank said it will ensure that adequate prevention, detection and reporting mechanisms are in place to identify significant fraud risks.