Banks’ contract staff responsible for frauds, forgeries, says NDIC


Contract and outsourced staff in the banking sector are now under searchlight for their involvement in the rising rate of frauds and forgeries in the system totaling N25.61 billion in 2014 alone.

This set of staff, according to the Chartered Institute of Bankers of Nigeria are responsible for over 75 percent of fraud and forgeries’ cases in the sector.

A Committee of the Institute is already working with heads of operations of banks on the challenges by these outsourced staff and would soon submit its report to the Central Bank of Nigeria (CBN) for consideration

This effort is to stem the tide in the sector.

Banks in their bid to compliment the inadequate human resources in the sector and also cut cost and maximize profits embraced outsourcing for marketing and other personnel.

Nigeria Deposit Insurance Corporation (NDIC) 2014 reports noted that Deposit Money Banks (DMBs) lost a total sum of N25.61 billion to fraud and forgeries.

This amount represented an increase of N3.81 billion or 17.5 per cent compared to N21.80 billion lost in the previous year.
Also, a total of 10,612 fraud cases were recorded in 2014 compared with 3,786 cases in 2013, representing an increase of 182.77 percent.

As a result, the expected/actual loss in fraud and forgeries increased from N5.76 billion in 2013 to N6.19 billion in 2014, representing an increase of 7.57 per cent largely due to the astronomical increase in the incidence of web-based (online banking)/ATM and fraudulent transfer/withdrawal of deposit frauds.

Umaru Ibrahim, managing director, NDIC at a meeting with President and other Council Members of the Chartered Institute of Bankers of Nigeria (CIBN) said bank examination reports showed that the high incidenceof fraud and forgeries in the banking system were more by outsource or contract staff.

. Umaru said that in as much as regulators appreciated the necessity for banks to 

cut costsit was incumbent on all stakeholders to fashion out capacity building and other strategies to motivate all employees to contribute positively rather than engaging in criminal acts that impact adversely on the entire banking system.

He also expressed concern about the plight of female employees in the banking industry who are often engaged with very high targets on deposit mobilisation and other asset creation ventures, which put undue pressure on the female employees. 

According to him, although some improvement had been recorded with regards to the situation, there was still need to provide more conducive working environment in order to attract and retain talented female workforce in the sector.

The President of the Institute,  Debola Osibogun said they were neither professionals nor members of the CIBN but lamented that the CIBN had no control over the recruitment policies of banks.

The CIBN President also said the Institute had been mandated as the agency for competency framework for banking industry by the CBN, adding that the CIBN had visited banks’ academies and had issued accreditation certificate to the academies of the First bank, Access bank and Guarantee Trust Bank.

To further strengthen professionalism in the sector,  Osibogun said that the Institute had harmonised the industry code of conduct which had been signed by all workers of deposit money banks, adding that the institute was seeking co-operation of microfinance banks’ workers to sign the document

According to her, the CIBN had strengthened its alliances with reputable local and foreign tertiary institutions for the linkage of its Associate Chartered Institute of Bankers (ACIB) programmes.

She commended the Management of NDIC for its continuous support to the Institute and the Corporation’s strategic investment in its human resources.

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