Access Bank Shareholders Lose 1.2k Per Share To Fraudsters in 2012

The board of directors of Access Bank Plc has reported a loss of N271, 413,824.58 to fraudulent activities carried out against the financial institution in the financial year ended December 31, 2012. Details are contained in the bank’s annual report for the period which was rendered to shareholders at the bank’s annual general meeting held in Lagos last week.

Analysis of the loss as it concerns shareholders shows that a shareholder of the bank had lost about 1.2kobo per share to fraudsters in the review financial year.

This is because if the frauds were prevented, the said amount would have been credited to the bank’s statement of comprehensive income as part of the profit for the year out of which dividend are paid to shareholders.

Going by the bank’s outstanding shares of 22,882,918,908 units in 2012, a unit of its shares will earn 1.2kobo if the amount lost to fraudulent activities was added to the dividend package for shareholders in the review financial year.

Meanwhile the bank reported that the fraud cases hit the peak in the second quarter in terms of amount involved, while the fourth quarter recorded the highest number of such activities.

In the first quarter a total of 48 successful fraud cases amounting to a loss of N26, 113,262.55 was recorded while in the second quarters, it increased to 85, leading to a loss of N129,651,430.50. However, despite an increase in the number of cases recorded in third and fourth quarters to 94 and 119 respectively, the amount involved decreased to N50,680,430.48 and N64,968,696.05 respectively from the second quarter figure, bringing the total amount to N271,413,824.58

A classification of the defrauding activities shows that 83 fraudulent withdrawers/transfers amounting to 135,669,409.35, a total of 37 of cash theft/suppression/robbery resulting in the loss of N127,865,808.38 was recorded during the year, while, 226 cases of ATM/POS Fraud leading to a loss of N7,878,609.85

According to the bank, total complaints in 2012 increased by 36 per cent mainly due to increase in size of operations after the business combination with Intercontinental Bank, noting that 98.6 per cent of complaints received were resolved as at December 31, 2012. Further, breakdown shows that 62 per cent of complaints received during the year were related to ATM/Card issues while 21 per cent relates to service issues.

Access Bank’s Fraud Trend in 2012

Period No of successful frauds Net amount lost bank (N)
Q1 48 26,113,262.55
Q2 85 126,651,435.50
Q3 94 50,680,430.48
Q4 119 64,968,696.05
Total 346 271,413,413,824.58

 Classification According to Type of Fraud 2012

Types of fraud Frequency Net Amount lost Bank (N)
Fraudulent withdrawal/Transfers 83 135,669,406.35
Cash Theft/Suppression/Robbery 37 127,865,808.38
ATM/POS Fraud 226 7,878,609.85
Total 346 271,413,824.58

Reporter: Festus Okoromadu