NIGERIA: Insider Abuse, Lack of Ethics Causes of Bank Fraud, says AIG Argungu

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Assistant –Inspector General of Police, in charge of Zone 5,  Hashimu  Salihu Argungu has identified disregard for  operational ethics, unhealthy rivalry  and poor recruitment policies  as  major  causes  of   fraud and   insecurity in banks   and other financial institutions in the country.

Argungu also linked bank insecurity to unguarded, misuse and leakage   of critical    bank information to unscrupulous individuals by bank employees.

Argungu spoke yesterday in Asaba , the Delta State capital , during the 7th annual retreat for heads  of security of bank  and other financial institutions , organised   by the Chartered Institute of Bankers  of Nigeria (CIBN).

In his twenty page presentation, titled “Security Challenges in Today’s Nigerian Financial Institutions”,  Argungu argued  that, the current insecurity challenges faced by banks and other financial institutors occasioning fraud and other vices  stem from  disregards of operational and professional ethics.

He said bankers now open accounts for customers in their bedroom and through telephone conversations without recourse to due process in their bid for customer drive and to meet financial targets.

He said the drawbacks of these unprofessional conducts finds expressions in corporate and identity theft, workplace violence, bank robberies, acts of terrorism, stalkers and computer fraud among others  banking  vices .

Argungu pointed out that most of the bank robbery operations, according to investigation were traced to the insiders who were bank officers, adding that banks do not pay adequate attention to recruitment policies as casualisation  and out sourced staff were potential dangers.

He therefore advised banks and other financial institutions to strive towards ensuring adequate security arrangements for their staff, materials and building environment at all times  with the provision of enough illumination and installation of closed circuit cameras and other surveillance systems.

Director, Security Services, CBN, Mr. Tayo Amu, in his presentation, acknowledged that banks were passing through uncertain times arising from the   large scale fraud and violent robbery in the banks , adding that these uncertainties were affecting banking operations nationwide.

Amu, who was represented by CBN Asaba branch controller,   Dame Elizabeth O. Agu,   noted that , today , beyond  physical  security challenges , the  financial sector in Nigeria  was faced with deep cyber security  challenges which threatens  to greatly undermine the business growth  potentials  of banking  sector  business.
“The issue  of identity  theft   coupled   with insider abuse , occasioned by lack of sound background  profiling system , are also  confronting  the banking sector”, he said .

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