Business
First Bank Faces $9.1 Million Fraud Scandal Amid Growing Financial Crime Concerns in Nigeria

First Bank, Nigeria’s oldest financial institution, is grappling with a major fraud scandal that has seen approximately $9.1 million siphoned from customer accounts by unidentified individuals.
Sources familiar with the matter have confirmed the breach, which reportedly began months ago and involved the unauthorized transfer of funds from multiple customer accounts.
The stolen funds were allegedly dispersed into various accounts, including those of two fintech companies, a tactic commonly used to obscure money trails and complicate recovery efforts. The breach went unnoticed for an extended period, raising alarms about the effectiveness of First Bank’s internal control systems.
This incident follows a previous case in May 2024, where a First Bank employee was accused of diverting $52.2 million over two years. Investigations later revealed that the total stolen amounted to approximately $78.3 million, leading to the dismissal of 100 employees and the sudden resignation of the bank’s CEO.
The recent scandal underscores the growing sophistication of financial crimes in Nigeria. According to the Nigeria Inter-Bank Settlement System (NIBSS), Nigerian banks reported a combined loss of $56 million to fraud in the second quarter of 2024 alone. However, with only 60 out of 163 financial institutions reporting fraud, the actual figures are likely higher, as many banks prefer to keep such matters quiet to protect their reputations.
First Bank has initiated recovery efforts and reported the case to law enforcement, according to sources with knowledge of the situation. However, it remains unclear whether the bank has pursued legal action against those involved.
This incident highlights the increasing vulnerability of Nigeria’s banking sector to fraud and emphasizes the urgent need for stronger regulatory oversight, improved internal controls, and greater collaboration between banks and fintech companies to combat financial crime effectively. The case serves as a stark reminder of the high stakes for financial institutions that fail to protect their customers’ funds.
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