UBA reduces fraudulent transactions by half, boosting profits to ₦335 billion
United Bank for Africa (UBA) has made significant strides in reducing fraud losses, as reported in their half-year 2025 financial results. The bank's investments in enhancing its IT infrastructure and technological services in 2024 have led to noticeable changes, particularly in fraud detection and reduction.
UBA operates in 20 African countries and most of the fraud losses have been traced to electronic channels and unauthorised transfers. In the first half of 2025, UBA cut fraud losses by 45.35%, amounting to ₦288 million ($192,130). This represents a significant decrease from ₦229.10 million ($152,837) in electronic fraud losses in H1 2024.
The exchange rate used for the given data is ₦1498.98/$
In H1 2025, ₦2.40 billion ($1.60 million) worth of transactions were linked to fraud attempts, but only 12% resulted in actual losses. This suggests that UBA's enhanced IT systems are effectively detecting and preventing fraudulent activities.
Nabila Mohammed, a research analyst at Chapel Hill Denham, confirms this, stating that the improved IT systems have led to fewer fraud incidents and financial losses for customers.
However, there was a 19,470.8% increase in cheque-related fraud losses. This could be due to the increased use of cheques amidst the digital transformation, making them a more attractive target for fraudsters.
POS and ATM fraud are rising, despite a decline in overall fraud cases. This underscores the need for continuous investment in security measures to protect these channels.
UBA spent ₦48 billion ($32.02 million) on tech upgrades in 2024, which seems to have paid off in terms of reducing fraud losses.
The Central Bank of Nigeria (CBN) has taken steps to further tighten internal controls. In January, the CBN directed NIBSS to debit the settlement accounts of banks that receive fraud proceeds, aiming to force banks to strengthen their internal controls.
UBA has also instituted internal control procedures to safeguard assets and prevent and detect fraud. The bank's profit after tax increased by 6.06% to ₦335.53 billion ($223.84 million) in the same period, further indicating the success of these measures.
Despite these improvements, it's important to note that UBA, like many financial institutions, continues to grapple with the ever-evolving threat of fraud. However, with continuous investment in technology and robust internal controls, the bank is well-positioned to continue reducing fraud losses and ensuring the security of its customers' transactions.
Read also:
- Musk threatens Apple with litigation amidst increasing conflict surrounding Altman's OpenAI endeavor
- Transitioning to Electric Vehicles Places Heavy Demand on Power Grids
- E-mobility continues its progress after a decade since the scandal, staying on course
- The Commission deems the assistance program to be in agreement with the domestic market regulations.
