Banks recorded 3,380 fraud cases in 2012 - NDIC

Cases of fraud reported by Deposit Money Banks in Nigeria are on the rise.

A staggering  3,380 fraud cases involving the sum of ₦17.97 billion with expected/contingent loss of about ₦4.52 billion were report by the banks in 2012 the Nigeria Deposit Insurance Corporation (NDIC) said in its 2012 annual report of released on Tuesday.

The  expected/contingent loss had increased by ₦455 million (10.9 per cent) as against ₦4.072 billion reported in 2011, the deposit insurer reported.

According to the report,  'notwithstanding the 43.7 per cent increase in the number of reported fraud cases from 2,352 in 2011 to 3,380 in 2012, the amount involved decreased by 36.4 per cent from ₦28.40 billion in 2011 to ₦18.04 billion in 2012.'

The report said that the corporation 'paid a cumulative sum of ₦6.82 billion to 528,212 insured depositors of closed banks by December 31, 2012 as against ₦6.68 billion paid to 527,942 insured depositors as at December 31, 2011.'

This feat the NDIC said was achieved in spite of long closure of the banks and the unwillingness of many depositors to file for their claims.

Similarly, a total sum of N2.505 billion was paid to 75,322 verified depositors of 95 out of 103 closed Micro Finance Banks (MFBs) during the year as against the sum of ₦2.249 billion paid to 72,062 verified depositors in 2011. In addition, the sum of N73.58 billion was paid as liquidation dividend to 250,209 depositors of DMBs as at December 31, 2012.