Banks, customers lose N134bn to fraud

Nigerian banks and their customers suffered cumulative fraud losses of N134.48bn between 2020 and 2025, according to figures contained in the Central Bank of Nigeria’s Nigeria Payments System Vision 2028 report.

The document, as analysed in report by The PUNCH, revealed that fraudsters attempted to steal N187.79bn during the six-year period, with N134.48bn ultimately lost across the banking and payment ecosystem.

The losses were spread across a wide range of transaction channels, including over-the-counter banking, Automated Teller Machines, cheques, e-commerce platforms, internet banking services, mobile banking applications, Point of Sale terminals and other electronic payment systems. The figures underscore the growing risks associated with Nigeria’s rapidly expanding digital payments landscape.

A review of the data showed a steady rise in fraud-related losses over the years. Recorded losses stood at N11.61bn in 2020 before increasing to N12.77bn in 2021 and N14.32bn in 2022. The figure climbed further to N17.67bn in 2023 before reaching a record N52.26bn in 2024.

The 2024 loss represented almost 39 per cent of the total amount lost within the six-year period, making it the most severe year for fraud in the country’s financial system.

Fraud attempts followed a similar trend. The value of attempted fraud rose from N13.26bn in 2020 to N14.48bn in 2021, N16.41bn in 2022 and N19.72bn in 2023. In 2024, attempted fraud surged sharply to N86.36bn.

However, the report showed an improvement in 2025, with attempted fraud falling to N37.57bn and actual losses dropping to N25.85bn.

The CBN attributed the unusually high losses recorded in 2024 largely to a major internal fraud incident valued at N30bn.

According to the report, “Fraud amounts in Internet Banking, Mobile, and POS channels declined, yet overall losses rose by 196 per cent, primarily due to a major internal case involving N30bn. Web fraud incidents also increased by 169 per cent.”

The apex bank noted that the incident demonstrated how a single large-scale fraud case could significantly influence industry-wide loss figures, even when fraud levels across several payment channels were improving.

The report also highlighted changing fraud patterns over the years. In 2021, web-related fraud dropped by 43 per cent, but overall losses still increased as Point of Sale fraud incidents jumped by 276 per cent.

In 2022, fraud losses rose by 12 per cent, driven mainly by significant attacks on corporate accounts. During the same year, ATM-related fraud surged by more than 2,000 per cent despite reductions in fraud across mobile banking, POS and web channels.

The situation worsened in 2023 as e-commerce platforms became a major target for criminals.

“Fraud losses rose by 23 per cent, largely due to a spike in e-Commerce incidents, which escalated by 1,961 per cent. Mobile, POS, and Web channels recorded moderate increases,” the CBN stated.

Despite the challenges, the regulator reported notable progress in 2025 following tighter controls and closer cooperation among stakeholders within the financial sector.

The document stated, “In 2025, electronic payment fraud declined by 51 per cent, demonstrating the success of stricter regulations, increased industry cooperation, enhanced prevention strategies, and improved monitoring.”

The CBN added that it had worked with banks and other industry participants to strengthen supervision, improve fraud monitoring and implement collaborative measures aimed at reducing vulnerabilities across Nigeria’s payment infrastructure.