Nigerian banks and financial institutions have lost an alarming N52.3 billion to fraudulent activities between 2020 and 2024, according to a newly released Fraud Report from the Nigeria Inter-Bank Settlement System (NIBSS).
The report paints a troubling picture of how rapidly evolving digital banking platforms are also opening doors for sophisticated fraudsters to exploit system vulnerabilities.
Digital Growth Fuels Fraud Explosion
NIBSS highlighted that as digital transactions surged over the past five years, so did financial crime. While the number of reported fraud cases declined by 31%, dropping from 101,624 cases in 2020 to 70,111 in 2024, the actual value of losses skyrocketed by over 350%, climbing from N11.61 billion to N52.26 billion in the same period.
The Hidden Trends Behind the Numbers
The report exposed an alarming spike in financial fraud during 2024, particularly in the second and third quarters, when both attempted and actual financial losses surged.
NIBSS attributed this sharp rise to security gaps within certain financial institutions, leaving their systems vulnerable to sophisticated attacks. While some decline in activity was recorded in Q4, the agency warned against complacency, stressing that the situation remains critical.
Senior Citizens — Prime Targets for Fraudsters
In a particularly disturbing trend, NIBSS revealed that fraudsters specifically targeted Nigerians aged 40 and above in 2023 and 2024. Many fraud cases involved the theft of identities belonging to senior citizens, with criminals using stolen details to open fraudulent bank accounts.
Through these fake accounts, over N400 million was funneled and eventually laundered — money that, in many cases, became almost impossible to recover.
Urgent Call for Stronger Safeguards
NIBSS has issued a clear warning to banks, fintech companies, and regulators, urging them to tighten security protocols and enhance customer education programs — particularly for older account holders, who continue to be prime fraud targets.
The agency called for stricter verification processes when opening accounts, especially for high-value transactions or accounts that become dormant or inactive. Recommendations included:
Setting strict transaction limits on newly opened savings accounts.
Applying zero-transaction limits to dormant accounts.
Maintaining a national fraud watchlist tied to BVNs of individuals previously involved in fraudulent activities.
Rolling out advanced enterprise fraud detection systems to monitor transactions in real-time and flag suspicious activities immediately.
Regulatory Gaps and the Need for Reform
The report also called out gaps in existing financial regulations, urging regulators to review, update, and enforce stronger anti-fraud measures. Without these critical changes, NIBSS warned, the financial sector will remain dangerously exposed.
The Road Ahead — Collaboration and Constant Vigilance
As cybercriminals grow more sophisticated, NIBSS stressed that collaboration between financial institutions, regulatory bodies, and law enforcement agencies is more essential than ever. Beyond technology, the agency also emphasized the importance of customer education, particularly for older Nigerians, to help them recognize and avoid common scams.
With N52.3 billion already lost, and the tactics of fraudsters evolving rapidly, the time to act is now.
