Magic in the banking halls, by Dayo Thomas

When I was in the village in the 1980s, there was a group of individuals who carried out strange activities that defied reason but were known only to the initiated. It was called magic. Back then, crowds would gather in profound amazement to watch money disappear from one person, only to reappear in another’s pocket. It was abracadabra—the more you saw, the less you understood. We watched as ordinary paper suddenly turned into money and back again. These acts were as astonishing as they were baffling, and many believed they would remain confined to the realm of street performances.

But like magic, such occurrences have resurfaced in Nigerian banks, where depositors’ money, kept in the custody of financial institutions, is disappearing from vaults and reappearing in private hands.

If this isn’t magic, then what is it? In an attempt to modernize banking operations, we now call it online fraud or digital crime. But the unfolding reality is grim—money in banks is becoming increasingly unsafe. As a result, many Nigerians are turning to unconventional means to store their funds rather than relying on banks.

This sad reality highlights the stark contrast between the traditional belief—taught in elementary economics—that banks are the safest places to keep money and the harsh reality of modern-day banking in Nigeria.

The rise of digital crimes, including fraud perpetrated by POS operators, has eroded trust in the banking system. Many Nigerians have fallen victim to these scams, losing their hard-earned money.

Depositors’ money can disappear from banks through various fraudulent activities, including:

Phishing scams – Fraudsters trick depositors into revealing sensitive information, such as passwords or PINs, allowing unauthorized access to accounts.

Identity theft – Criminals steal depositors’ identities to access existing accounts or create new ones.

Card skimming – Scammers install devices on ATMs or POS terminals to capture card information and PINs.

Online banking fraud – Hackers gain access to banking systems, enabling them to transfer funds or steal sensitive information.

Internal fraud – Bank employees or contractors with authorized access to accounts misuse their privileges to siphon funds.

The issue with POS operators is particularly concerning, as they are meant to provide a secure and convenient way for people to access their money. Instead, some unscrupulous operators exploit their customers’ trust for personal gain.

This situation underscores the need for increased vigilance, public education, and stronger regulations to prevent these scams. Banks, regulatory bodies, and law enforcement agencies must work together to protect customers’ funds and restore trust in the banking system.

–Thomas is a seasoned Nigerian journalist.