Fraud Alert on Bank Operations

Aderonke Kehinde/

Activities of fraudsters have brought spotlight on banking operations at two of Nigeria’s leading financial institutions, Access Bank Plc and First Bank of Nigeria Plc, after security agents found that officials were bending the rules to accommodate criminals opening accounts.

Detectives at the Special Fraud Unit (SFU) and the Economic and Financial Crimes Commission (EFCC) are worried that banks are turning a blind eye to stringent security measures or requirements that could protect hapless Nigerians from the activities of internet fraudsters.

The offending banks came under scrutiny, after the police arrested six fraudsters who opened accounts in the name of OPEC Fund for International Development (OFID), with one of them as the sole signatory.

Talking about the individual opening account in the name of a renowned international organization, and he is the sole signatory to such account, SFU spokesperson, DSP Ngozi Isintume-Agu, said: “The bank was supposed to ask questions about the name in which the account was being opened, but the officials went ahead to open the account against the rules. This is very strange.”

EFCC spokesman, Wilson Uwujaren said: “From experience, we found that these fraudsters collude with insiders in the banks to open such accounts. It happens once in a while, and we are beaming our spotlight on such operations.”

Detectives lamented that bank officials encourage fraudsters to commit crime, because they have target they must meet. They’re not concerned about how the money is coming in or where it is coming from.

The police have asked the banks to explain how an individual was able to open account in the name of a renowned international organisation, when the procedures, according to the laws guiding banking operations, include the provision of the Certificate of Incorporation, certified copy of Articles and Memorandum of Association, signed and sealed board resolution, particulars of Directors, identification of signatories with International passport, driver’s license, voters card, or national ID card.

They are also required to fill official and residential visitation form, apply additional Know Your Customer (KYC) policy, and supply two passport-sized photos, references from two independent people of another company, and utility bill of the office among others.

The internet fraudsters were arrested after a year-long investigation by detectives at SFU, who received a petition from OFID on August 22, 2013, alleging that some faceless people have cloned the organisation’s website and were using it to defraud unsuspecting members of the society.

According to investigators, the website designed as “OFID Scholarship Website” with OFID name and logo has been used to defraud many Nigerian applicants, who were required to pay N2, 500 as an application fee.

Isintume-Agu said: “Over 2, 000 applicants responded and paid the fees through the First Bank Account Number 2020874607 and Access Bank Account Number 0056941009 with the name OFID WSAS NG.  The petitioner stated further that it was one of the victims that contacted OFID via facebook, accusing OFID of being complicit in the fraud.

“The Cybercrime Section of the Unit swung into action and the mastermind of the fraud, one Falade Oluwapelumi Ayotunde was arrested.  His arrest led to the arrest of five other members of the syndicate.

“Police investigation has so far revealed that over 2, 000 applicants paid the sum of N2, 500 each into the two bank accounts provided by the suspects, and the principal suspect is the only signatory to both accounts.”

The police identified 25-year-old Ayotunde as a 500-Level Estate Management student of Federal University of Technology, Akure (FUTA).

According to the police, the suspect made a confessional statement, that he designed the website of OFID WSAS (OPEC Fund for International Development for World Student Aid Scholarship) in June, 2012, adding that the idea came from one 25-year-old Bolatiri Onaopemipo, and 27-year-old Fajobi Olalekan, a 2012 best graduating Mechanical Engineering student of FUTA, who made a first class honour. He currently works with a firm named Dee Xecutor Concept.

Ayotunde allegedly admitted that he opened an account in both First Bank and Access Bank with the name OFID WSAS NG for applicants to pay in their application fee, and there were many respondents.

“He further stated that he and his cohorts printed a postal for OFIDWAS which was on the website,” Isintume-Agu said.

Other suspects in police net were identified as Asaolu Victor, 25; Awote Temitope Emmanuel, 27, and Adebomi Oluwatosin, 26.

According to the police, Victor is a jobless graduate of Mining Engineering from FUTA, who assisted the fraudsters to paste the posters online at a cost of N120, 000; Emmanuel is a 500 Level Estate Management student FUTA, who assisted the principal suspect to sign guarantor form for the accounts he opened in First Bank and Access Bank for the OFID program and was paid N70, 000. He also participated in pasting and publicizing the fake OFID Scholarship Program, even as he admitted the he knew from the onset that it was all a scam.

Olalekan stated that while in school, he lived in the same Lodge with Ayotunde whose mates were always coming to him for educational assistance because of his intelligence.

He said that he once fell victim of a scholarship scam known as EDIADS, which made Ayotunde to approach him and got some information regarding that one, which he believed gave him an idea on how to design OFID Scholarship Website. He further stated that he lent Ayotunde the sum of N12, 000 for hosting the Website. He later gave him N20, 000 in return and informed him that the fraud was successful.

Onaopemipo is also a graduate of FUTA and a handset dealer. He corroborated Olalekan’s statement that they applied for scholarship, while in school, which turned out to be fake and they shared their experiences with Ayotunde, which gave him an idea on how to design his own fake Website with OFID name and logo.  He added that he lent him the sum of N8, 000 and was later paid N12, 000 with interest.

Oluwatosin, who works as a Programmer at Delta State Polytechnic, Ozoro, also graduated from FUTA. He told the police that he offered professional advice to Ayotunde and lent him the sum of N10, 000, and was later given N100, 000 as his own share.

He admitted that he knew from the onset that it was scam aimed at defrauding innocent applicants, since there was no authority from OFID.

Detectives are now investigating the role of the bank officials who turned a blind eye to the fraud, even after receiving compulsory training on fraud detection regularly organised by the Central Bank of Nigeria.

The Commissioner of Police at SFU, Mr Umar F. Idris, said his men were making further investigations, after which the suspects would be charged to court. He, however, urged the general public to verify the genuineness of any on-line advert before parting with money.

 

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