Depositors’ Funds At Risk As Wema Bank Reports N1.13bn Fraud Amid Weak System

Depositors and stakeholders of Wema Bank Plc, led by Moruf Oseni, express deep concern over the safety of their investments and the stability of the institution amidst a surge in fraudulent activities reported in the financial year of 2023.

The disclosure of N1.136 billion in fraud cases within Wema Bank’s financial statement has heightened apprehension among investors and industry observers.

Financial analysts are deeply troubled by this revelation, as it indicates potential vulnerabilities in the bank’s security infrastructure, that is,the bank’s security system may be either weak, poor, not up to industry standard or operated by unqualified personnel.

The disclosed amount of fraud not only undermines depositor confidence but also raises questions about the efficacy of the bank’s risk management protocols and the qualifications of its personnel.

Furthermore, the impact of these fraudulent activities extends beyond immediate financial losses. With 1,195 recorded fraud cases, amounting to N1.136 billion, the bank faces challenges in fulfilling dividend payouts to its shareholders.

In the audited 2023 financial statement, the bank recorded 1,195 fraud cases to the tune of a whopping N1.136 billion, out of which N685.595 million was lost.

Despite claims that 97 percent of the fraud cases were perpetrated by external parties, the significant financial implications underscore the urgent need for Wema Bank to bolster its security measures and restore trust among its clientele.

Internet fraud was worth N203.724 million and N90.017 million was ferried away by fraudsters.

Fraudsters also attempted to steal N36.071 million via point-of-sale channels and N8.148 million through mobile banking but only succeeded in carting away N506, 000.

Scammers also attempted to steal N869,000 via automated teller machines and N27.39 million web frauds, but they were foiled.