By Tyavzua Saanyol

Copyright tribuneonlineng

Financial institutions in Nigeria lost N52.26bn to fraud in 2024-Britsh High Commission

•Says 76 million people falls victim to fraud yearly

The Convener, ISO/TC309/WG8 and the Chairman, SON NTC Governance of Organization, Prof. Oserheimen A. Osunbor on Tuesday stated that the world economy loses over $4.7 trillion to fraud yearly.

Speaking in Abuja at the launch of ISO 370032:2025, Osunbor said the formation for the new standard started on the sidelines of ISO TC 309 plenary in Sydney, Australia in November 2018 .

“There was need to develop a standard to address fraud in organizations that would align with the strategic business plan of TC 309 following our presentation to plenary, an ad hoc group was by resolution constituted to ascertain the desirability of an ISO deliverable on fraud controls.

“A global survey was designed and administered by the ad hoc group, and we received responses from a wide range of organizations, small, medium and large, covering commercial, government and non governmental organizations from diverse sectors.

“The responses established key facts, namely; One, there was awareness of fraud risks in organizations. Two, there were existing fraud controls within the organizations, including internal fraud whistleblowing code of conduct, anti fraud policies as well as fraud training and management reviews to mitigate the impact of fraud.

“Another element was that, despite the existence of these internal mechanisms and statutory regulations, there was a clear need for an ISO standard dealing with fraud control”.

He explained that”research findings from the literature published by reputable sources show that fraud costs the global economy about $4 trillion per year. In fact, the Chief Executive of the Chartered Institute of Thoracic Examiners put it at $4.7 trillion, so it’ is increasing.”

He noted that total loss amount to 7% of the annual turnovers of organizations based on the findings. “The leadership of TC 309 in 2022 approved the proposal and established Working Group to develop a fraud control management system standard after going through all the different stages of development, from working draft to committee, draft international standard to final draft international standard.

“The document was published as an international standard on 29th May of this year. It has been adopted by SON as a National Industrial Standard in accordance with the Standards Organization of Nigeria act.

“We are gathered here today to witness the formal presentation and launch of the standard ISO 37,003 is a response to global concern about the damaging effects of fraud.

Osunbor said the standard provides guidance for organizations for the development, implementation and maintenance of an effective fraud control management system, including fraud prevention, early detection of fraud and effective response to fraud events that have occurred or may occur in future.

“By adopting and implementing ISO 37,003. along with the other TC 309 family of standards, ISO member countries and their organizations will boost their global competitiveness by sending a clear signal that they uphold the highest standard of governance and that it is safe to do business” he reaffirmed.

Also speaking at the event, Sorrel Evans of the Justice and Home Affairs Affairs with the British High Commission in Abuja reiterated that “on behalf of the United Kingdom, I am honoured to stand here today alongside our Nigerian partners, united in a shared mission: to protect our economies and our citizens from the growing threat of fraud.

“Fraud is not just a financial issue, it affects livelihoods, undermines trust, and in the most heartbreaking cases, it costs lives.

‘The scale of the problem is staggering:, there are an estimated 76 million victims of fraud each year” she stated.

Evans noted that globally, scammers siphoned off an estimated $47 trillion in just 12 months. “A figure that exceeds the GDP of many nations.

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“In the UK alone, 10 million people have been affected, costing our 11 economy and individuals £15 billion over the past three years.

“Financial institutions in Nigeria lost N52.26 billion to fraud in 2024 according to the latest report by the Nigeria Inter-Bank Settlement System (NIBSS).

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“But even more worryingly – these trends are growing across the nation, the continent, and the world. This represents a significant increase of 295% compared to the N17.67 billion recorded in 2023” she explained.

Sorrel Evans said in parts of Africa according to INTERPOL, scam notifications rose by 3,000% last year”, commending SON for adopting standard for fraud control.

“I want to thank the Standards Organisation of Nigeria (SON), the British Standards Institution (BSI), and all stakeholders who contributed to this effort. ISO, one of the world’s longest-standing international organisations, continues to demonstrate its central role in shaping a safer, more secure global economy.

“Over the next few days, you will hear from experts and peers about the many ways fraud impacts business viability and profitability. But I encourage you to also look around this room-for opportunities to connect, collaborate, and lead the next wave of change in this industry.

“Nigeria’s publication of these standards is more than a technical achievement. It is a statement of leadership, engagement, and ambition to be a global pioneer in fraud prevention” she stated.