Cyber Fraud Alert: "Avoid Sharing Account Numbers Publicly," Warns Moniepoint MD

Introduction
In an exclusive interview with the News Agency of Nigeria (NAN), Mr. Babatunde Olofin, Managing Director of Moniepoint Microfinance Bank, urged Nigerians to prioritize cybersecurity by refraining from publicly sharing their account numbers. With the festive season in full swing, Olofin emphasized the increased risk of falling victim to financial crimes and highlighted preventive measures to curb such activities.

The Risks of Sharing Account Numbers

Olofin stressed that public exposure of bank account details could lead to unintended consequences, including legal troubles. He revealed that some individuals have been imprisoned for unknowingly allowing fraudsters to misuse their accounts.

“Some people are in prison because they had no idea what someone used their accounts for,” he said.

Fraudsters often exploit public information to commit financial crimes, leaving innocent account holders to face the consequences.

How Fraudsters Operate

Babatunde outlined common tactics used by cybercriminals, including:

Fake Giveaways: Fraudsters lure victims with offers of free gifts or cash rewards to extract personal and banking details. “People don’t love you as much to be giving you giveaways. They are harvesting your details,” he warned.
Advance Payment Scams: Victims are tricked into making upfront payments, only to lose their money without receiving the promised reward.
Identity Theft: Cybercriminals misuse victims’ accounts for illicit activities, such as money laundering, which can lead to legal repercussions for the account holders.

“Fraudsters do a lot of things. They structure funds and know how internal systems work,” Olofin explained.

Moniepoint’s Cybersecurity Measures

To combat fraud, Moniepoint is collaborating with key agencies like the Nigerian Financial Intelligence Unit (NFIU) and the Economic and Financial Crimes Commission (EFCC). Babatunde highlighted the bank’s efforts to enhance fraud detection and prevention:

Advanced Transaction Monitoring: Moniepoint has developed a robust transaction monitoring system and an anti-money laundering team.
Internal Rules for Fraud Prevention: The team employs sophisticated controls to identify and block suspicious activities.

“We’ve built up a transaction monitoring and money laundering team that has set rules internally,” he stated.

Fraud in Nigerian Banks: A Growing Concern

Recent statistics from the Financial Institutions Training Centre (FITC) reveal an alarming rise in fraud cases across Nigerian banks:

65% Increase in Fraud Incidents: Cases surged from 11,532 in Q2 2024 to 19,007 in Q3 2024.
Financial Impact: The amount involved in fraud attempts doubled to ₦115.9 billion in Q3 2024, up from ₦56.6 billion in the previous quarter.

Despite these challenges, banks successfully reduced actual losses:

Losses fell to ₦10.1 billion in Q3 2024, a 75.4% drop from ₦42.8 billion in Q2.

Cumulatively, Nigerian banks lost an estimated ₦53.4 billion to fraud in the first nine months of 2024, underscoring the urgent need for heightened vigilance.

Conclusion

As cyber fraud continues to evolve, individuals must take proactive steps to protect their financial information. Avoid sharing account numbers publicly, remain cautious of suspicious offers, and report any suspected fraudulent activities. Together with robust institutional measures, these actions can help mitigate the growing threat of financial crimes.