Nigeria’s banking fraud increased dramatically from N11 billion in 2020 to N52 billion in 2024. Fraud attempts totaled N86.4 billion in 2024, with methods including identity theft. An investigation is ongoing regarding implicated bank staff, with some funds recovered.
Nigeria’s banking fraud has surged over the last four years, with losses escalating from N11 billion in 2020 to an alarming N52 billion in 2024, according to the Nigeria Inter-Bank Settlement System (NIBSS). The latest report indicates that fraudsters attempted to steal a total of N86.4 billion in 2024 alone, signifying a dramatic increase in fraudulent activities within the banking sector.
This rise in fraud cases correlates with increased digital transactions in Nigeria’s financial landscape. The NIBSS report emphasizes that as digital payments have grown, so too have the opportunities for fraud. Methods employed by fraudsters range widely, including the use of stolen identities to withdraw funds to gift cards, and even opening accounts under the names of vulnerable individuals, such as minors and senior citizens.
Additionally, over N400 million was reported as fraudulent gains received through accounts opened with stolen identities of senior citizens. The NIBSS has noted that investigations are underway to scrutinize the involvement of bank personnel in such fraudulent activities. Some funds have reportedly been recovered, indicating some level of remediation in the ongoing issue.
The NIBSS report highlights a significant increase in fraudulent transactions within Nigeria’s banking sector, rising to N52 billion in 2024 from N11 billion in 2020. This trend underscores the need for enhanced security measures in digital banking to protect consumers and maintain trust in financial systems. Regulatory bodies must work to curb fraud and ensure accountability among banking staff involved in these scams.
Original Source: economicconfidential.com
