Depositors and stakeholders of the bank under the leadership of Moruf Oseni, have expressed concern over the safety of their investments and deposits and the stability of the institution amidst a surge in fraudulent activities reported during the 2023 financial year.

Financial analysts have expressed serious concern over this disclosure, highlighting potential vulnerabilities in the bank’s security infrastructure, suggesting that the bank’s security system may be either weak, substandard, or manned by unqualified or inexperienced personnel.

The amount of fraud observers say, not only undermines depositor confidence but also raises serious questions about the effectiveness of the bank’s risk management protocols and the competency of its personnel.

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

In its audited 2023 financial statement with a disclosure of a staggering 1,195 fraud cases totaling 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 substantial financial implications underscore the urgent need for Wema Bank to fortify its security Infrastructure and measures to rebuild trust among its clientele.

Internet fraud accounted for N203.724 million, with N90.017 million lost to fraudsters.

Additionally, fraudsters attempted to steal N36.071 million through point-of-sale channels and N8.148 million through mobile banking, but only succeeded in making away with N506,000.

Scammers also attempted to steal N869,000 through automated teller machines and N27.39 million through web frauds, but their attempts were thwarted.

“There is no fraud, whether material or not, that involves management or other employees who have a significant role in the bank’s internal control system,” the management of the bank had stated.

But analyst, an market watchers are of the view that the high incidence of fraud cases in 2023 leaves much to be desired as it goes to show how vulnerable the bank’s system is.

Also in the 2023 financial year, Wema Bank also incurred sanctions, with penalties paid amounting to N61.350 million for contravention of cybersecurity framework law, sections of the Bank and Other Financial Institutions Act (BOFIA) 2020, late rendition of returns, and circulars on the CBN know your customers, among others.

Despite these fraud and security challenges, the bank grew its revenue by 70.54 percent to N226.91 billion, driven by interest income that increased by 71.83 percent to N185.64 billion while and fees and communications revenue improved by 50.50 percent to N24.96 billion.

The lender’s pre-tax profit rose by 195.6 percent to N43.59 billion, just as post-tax profit inched by 220.42 percent to N35.93 billion from N11.21 billion recorded in 2022.

Its net trading income on the other hand dipped by 79.45 percent to N822.49 million,down from N 4 billion in 2022, primarily due to the N1.15 billion Treasury Bill loss it suffered in 202

Meanwhile, analysis have harped on the need for a more effective and efficient security Infrastructure and Management to ensure the bank does not continue to lose investors’ confidence.

Wema Bank they insist needs to take immediate and proactive step to prevent this level of fraud and assure its depositors that their deposits are safe and investors that their investors are secure by implementing measures to mitigate current cyber threats as well as engage competent professionals, while also investing heavily on customer education customers if the rising tide of fraud and fraudulent activities in the bank is to be mitigated

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