According to a report from the Central Bank of Nigeria (CBN), banks and their customers suffered a staggering combined loss of N134.48 billion to fraud between 2020 and 2025. This alarming figure underscores the increasing security challenges facing Nigeria’s rapidly evolving digital payments landscape.
The data, included in the CBN’s Nigeria Payments System Vision 2028 document, reveals that attempted fraud during this six-year period totaled N187.79 billion, with actual losses reaching N134.48 billion. These losses spanned various payment channels, including ATMs, mobile banking, internet banking, point-of-sale (POS) terminals, e-commerce platforms, and other electronic payment systems.
Year-on-year analysis shows a troubling upward trend in fraud-related losses. They rose from N11.61 billion in 2020 to N12.77 billion in 2021, N14.32 billion in 2022, and N17.67 billion in 2023. In 2024, the losses surged to N52.26 billion, marking the highest annual loss recorded during this period. Notably, this 2024 figure accounted for nearly 39 percent of the total N134.48 billion lost from 2020 to 2025.
Attempted fraud mirrored this trend, increasing from N13.26 billion in 2020 to N14.48 billion in 2021, N16.41 billion in 2022, and N19.72 billion in 2023, before jumping to an alarming N86.36 billion in 2024. However, both attempted fraud and actual losses saw a decline in 2025, falling to N37.57 billion and N25.85 billion, respectively. The CBN attributed the dramatic rise in fraud losses in 2024 to a significant internal fraud incident involving N30 billion.
The report highlights that while fraud amounts in internet banking, mobile, and POS channels declined, overall losses rose by 196 percent, largely due to this large-scale internal case. Additionally, web fraud incidents experienced a 169 percent increase, emphasizing how a single major fraud event can drastically impact overall industry loss figures despite improvements across several digital payment channels.
Changing fraud patterns were also noted throughout the years. For instance, in 2021, web-based fraud declined by 43 percent, but overall losses still increased due to a staggering 276 percent rise in POS-related fraud incidents. In 2022, fraud losses rose by 12 percent, primarily driven by significant fraud cases involving corporate accounts, while ATM fraud incidents skyrocketed by more than 2000 percent, even as mobile, POS, and web channels saw declines.
By 2023, overall fraud losses increased by 23 percent, largely influenced by a surge in e-commerce-related fraud, which escalated by 1,961 percent. The CBN reported that despite the persistent threat of fraud, a marked improvement was observed in 2025. The decline in fraud losses was credited to stronger controls and enhanced collaboration among stakeholders in the financial sector.
In 2025, electronic payment fraud decreased by 51 percent, showcasing the effectiveness of stricter regulations, increased industry cooperation, improved prevention strategies, and better monitoring. The CBN emphasized its commitment to strengthening oversight of the payments ecosystem and implementing collaborative safeguards to mitigate vulnerabilities across digital payment platforms.
CBN Governor Olayemi Cardoso remarked on the dynamic and innovative nature of Nigeria’s payments ecosystem, which is fueled by advancements in real-time payment systems, digital adoption, and fintech transformation. While digitalization has facilitated financial inclusion and reduced transaction costs, it has also introduced new risks necessitating stronger cybersecurity measures, improved fraud monitoring, and enhanced consumer protection.
Under the Payments System Vision 2028 framework, the CBN aims to prioritize security, trust, innovation, interoperability, inclusion, and collaboration while bolstering cyber resilience and deploying emerging technologies to combat increasingly sophisticated fraud threats.
Source Entertainment.
