NIGERIA’S tier-1 bank, Access Bank Plc, failed to resolve a total of 34,922 customer complaints in the 2023 financial year and this could cost the financial institution over N28 billion and $183 million, Economy Post has found.

According to the bank’s 2023 financial statement released on March 27, 2024, unresolved customer complaints in naira stood at 34,152. This represents a 458 percent increase from 6,118 customer complaints reported by the end of 2022. Total amount of money contested by customers is N28.480 billion.

But the amount of complaints submitted by customers in 2022 was only 2.825 million – 45 percent less than the 2023 figure.

READ ALSO: Fraudsters steal N5.5bn from Access Bank, financial institution faces another N29bn loss

In general, Access Bank Plc fared well in handling customer complaints in 2023 as a total of 5.092 million complaints were resolved by the bank out of 5.120 million received by the lender. This represents a 99.4 percent resolution point by the bank.

In terms of complaints by dollar-denominated customers, the bank did not resolve 768 cases with financial obligations totalling $182.738 million. This is higher than 244 customer complaints by dollar-earning customers of the bank.

Only two cases involving British pounds customers were left unresolved by the bank, with depositors claiming £2.85 million.

“We handle customer complaints with sensitivity and in due regard for the needs and understanding of each complainant,” Access Bank said in its 2023 financial statement.

READ ALSO: Access Bank grants loans to associates at 8% interest rate, charges customers 28%

“Efforts are made to resolve customer’s complaints at first level. Where this cannot be done, they are immediately referred to the appropriate persons for resolution. All complaints are logged and tracked for resolution and feedback is provided to the customer.”

Fraudsters hit again

Fraudsters hit Access Bank again in the second half of 2023, after stealing N5.46 billion in the first half of 2023.

Fraudsters stole an additional N69 million in the second half of 2023, bringing the total amount lost by Access Bank to fraudsters to N6.15 billion. The fraudsters penetrated the bank mainly through dubious transfers, withdrawals, and account reactivation. The bank lost N6.009 billion through these channels in 2023.

The bank also lost N92.203 million through electronic channels. Armed robbers also stole N21.508 million from the financial institution, while it equally lost N11.759 million to fraudulent cash lodgment.

Half-year fraud cases

Economy Post had reported that the bank lost N5.46 billion to fraudsters and forgers in the first six months of 2023, representing 355 percent increase from N1.2 billion lost to fraudsters and forgers in the corresponding period of 2022.

Access Bank had said in its half-year financial statement that it lost N5.459 billion to fraudulent transfers, withdrawals, and reactivation of accounts. It also lost N4.532 million to cash theft, suppression, pilferage and dry posting.

READ ALSO: Wema Bank incurs N8bn in court cases, loses N239m to fraudsters

“The actual loss that was incurred by the Bank for the period is N5.46Bn (June 2022: N1.2bn). The rest of the loss amount represents the losses incurred by other third parties,” the tier-1 bank had said.

Fraud rising in Nigeria

Cases of fraud and forgeries are rising in Africa’s most populous nation.

A recent study by Surfshark, an Amsterdam-based cybersecurity firm, showed that Nigeria was the 32nd most breached nation in the first quarter of 2023, as reported by Techcabal.

The report noted that Nigeria recorded 82,000 leaked accounts between January and March 2023, representing a 64 percent jump from the result of the previous quarter.

A US Federal Bureau of Investigation (FBI) 2020 report had ranked Nigeria as the 16th nation most affected by internet crimes. The report said Nigeria received 443 complaints relating to internet crimes in 2020, The Cable reported.

Fraudsters attacking Access Bank

Like other lenders, Access Bank spends huge amounts of money on IT, including a N1.139 billion on IT tax in the first half year of 2023. However, fraudsters are beating IT security systems across the banks to steal depositors’ funds.

READ ALSO: In 6 months, Zenith Bank lends only 7% of N311bn intervention fund

Between 2016 to 2020, Access Bank lost N871.4 million to fraudulent transfer/withdrawal transactions, including transactions on its electronic channels, The ICIR reported.

Access Bank lost N86.9 million to fraudsters in 2016, but this dropped to N78 million in 2017. In 2018, it rose to N385.7 million.

Between 2019 and 2020, there were  17,432 attempts to breach Access Bank’s electronic channels via USSD codes and ATM cards.

Strengthen your IT systems, experts advise

Financial and IT experts have advised banks to improve their systems to beat fraudsters,

“To successfully combat fraud, banks must beat cybercriminals at their own game, which requires making advanced technology part of their first line of defense,” said Hitach Solutions, a global Microsoft integrator, while advising banks to use artificial intelligence, biometric authentication, multi-factor authentication, and advanced analystics.

It also counselled banks to monitor transactions in real time, create database of known threats, educate banking customers, while hosting regular awareness training for the staff members.

A Lagos-based IT expert, Mr Tobe Iloani, stressed the need to develop several layers of IT security.

“There is a need for banks to use the multi-level approach. The use of AI is most critical now because fraudsters are innovating. Banks across the world use machine learning, and Nigerian banks can adopt this approach.”

A former bank worker in Abuja, Ms Patience Gyan, said there was a need to change the staff in the IT departments regularly.

READ ALSO: Wema Bank incurs N8bn in court cases, loses N239m to fraudsters

“Non-IT related frauds also happen. People steal others’ pin numbers or even smartly take their money while in the banking hall. So, this calls for vigilance among Nigerians. Do not believe every story you hear in the streets. Fraudsters are preying on people’s compassion and we should not give them that opportunity,” she added.

Access Bank recently lost its Group Chief Executive Officer, Dr Hebert Wigwe, his wife, Chizoba, and his son, Chizzy. They all died in a helicopter crash on February 9, 2024.