Bank Fraud in Nigeria Raises New Concerns About Digital Banking Safet

Electronic banking makes life easier. A person can send money from home, pay for food in a shop or receive money for a business without visiting a bank branch. But criminals also look for ways to take advantage of these services.

Figures presented by the Nigeria Inter-Bank Settlement System (NIBSS) at the 2026 Nigeria Electronic Fraud Forum showed that reported electronic payment fraud losses fell to ₦25.85 billion in 2025, compared with ₦52.26 billion in 2024. Although the reduction is encouraging, the amount lost remains serious.

For me, the lesson is clear. Digital banking can be useful, but customers need to understand the risks, banks must respond to threats and anyone who notices a suspicious transaction should act quickly.

What the Latest Bank Fraud in Nigeria Figures Tell Us

The figures presented at the 2026 Nigeria Electronic Fraud Forum also showed a fall in reported electronic fraud incidents, from 123,918 in 2021 to 67,518 in 2025. Lagos accounted for 63.43 per cent of the fraud activity reported in the figures presented at the forum.

These numbers need to be understood carefully. They concern reported electronic payment fraud and do not represent every type of financial crime in the country. They also do not mean that every bank customer faces the same risk.

Still, they show the size of the problem.

When people hear that billions of naira have been lost to electronic payment fraud, it can sound like a distant problem involving only large companies. But the people affected may include ordinary workers, shop owners, parents saving school fees and small business owners who need their money to buy stock.

A single unauthorised transfer can cause serious problems for a family. A business that loses money may struggle to pay suppliers or continue operating.

The decline in reported losses is a positive sign, but it should not lead banks or customers to relax their efforts. Fraud methods can change, and criminals may try new ways to trick people.

How Criminals Steal Money From Bank Accounts

Bank fraud can happen in different ways. Some criminals try to enter accounts using stolen information. Others trick people into giving them the details they need.

One common method is phishing. A criminal sends a fake text message, email or website that looks like it belongs to a bank or another trusted organisation.

The message may say that the customer’s account has a problem. It may promise a reward or claim that the person must confirm their details immediately. The aim is to make the customer click a link and enter private information.

Another method is a phone call from someone pretending to be a bank worker. The caller may say that a suspicious transaction has occurred and ask the customer to read out a code sent to their phone.

The customer may believe they are helping to protect their money. In reality, the code may allow the criminal to approve a transaction or gain access to an account.

Some attacks involve stolen phones, weak passwords or attempts to take control of a person’s phone number. In other cases, investigators may examine whether someone with authorised access to a system misused that access.

Not every failed transaction is fraud, and not every accusation proves that a person has committed a crime. Each incident needs to be investigated using the available evidence.

Why Criminals Use Fear to Trick Customers

One thing I find especially worrying about online fraud is how criminals use fear and pressure.

A message may tell a customer that their account will be blocked in five minutes. A caller may claim that money is being stolen at that very moment. The customer may feel that there is no time to check the story.

That fear can make a person act before thinking.

A genuine banking problem should be checked through a trusted channel. If a message or call demands a password, bank PIN or one-time password, the safest response is not to share it.

Customers should end suspicious calls and contact their bank using an official number or the bank’s verified application. They should not rely on a phone number provided by an unverified caller.

It is also wise to avoid clicking unexpected links that ask for banking information. If a message claims to come from a bank, customers can open the bank’s official application independently instead of following the link.

The important thing is to slow down. Criminals often depend on people feeling too frightened to check what is happening.

How Nigerians Can Protect Their Bank Accounts

Protecting a bank account begins with keeping private information private.

Customers should never share their bank PINs, passwords or one-time verification codes with strangers. They should use strong passwords and avoid using the same password for every account.

Phone security matters too. People should lock their devices and protect their email accounts, because email may be used to reset passwords for other services.

Customers should also be careful when installing applications. Unknown applications can create security risks, especially if they ask for permissions that do not match their purpose.

When using public Wi-Fi, people should avoid entering sensitive banking details if they are unsure whether the connection is secure. They should also keep their phones updated and use the security features provided by their banks.

For business owners, payment checks are especially important. A screenshot of a transfer is not proof that money has reached an account. Before releasing goods or providing a service, the seller should check the actual transaction through the official banking service.

These steps cannot remove every risk, but they can make it harder for criminals to succeed.

What to Do If Money Leaves Your Account Without Permission

If a customer notices a transaction they did not approve, the first step is to contact the bank immediately.

The customer should report the transaction, ask for the account or payment service to be secured and follow the bank’s instructions. Depending on what happened, the bank may be able to block a card, restrict a service or take other steps to prevent further activity.

The customer should also keep evidence. This may include transaction alerts, dates, reference numbers, messages and details about any suspicious calls.

It is useful to request a complaint reference number and keep a record of the steps taken. If the complaint is not resolved, the customer can follow the bank’s formal complaint process and use the appropriate official regulatory channel.

Customers should not assume that every report will lead to an immediate refund. The outcome can depend on the type of transaction, the evidence available and the applicable rules.

They should also be cautious of people who claim they can recover stolen money in exchange for an upfront fee. Fraud victims can be targeted again by criminals who pretend to offer recovery services.

The safest approach is to work through the bank and the relevant official channels.

What Banks Must Do to Fight Digital Fraud

Customers cannot carry the full responsibility for keeping the banking system safe. Banks and payment providers also have important duties.

Financial institutions need strong security systems that can identify unusual transactions and respond quickly to suspicious activity. They should regularly review their systems, limit access to sensitive information and train employees to recognise threats.

Banks also need clear ways for customers to report fraud. A person who has lost money should not have to struggle to find the right department or understand what to do next.

Good communication is important. Customers need simple explanations of what a bank will never ask them to share and how to check whether a message is genuine.

Where an employee is suspected of involvement in fraud, the institution should investigate the allegation fairly and take appropriate action when the evidence supports it.

Banks, telecom companies, payment providers and law enforcement agencies can also share relevant information within lawful processes to help identify new patterns of fraud.

No single measure will stop every attack. The aim should be to make fraud more difficult, identify suspicious activity sooner and help affected customers report problems without delay.

Can Nigeria Reduce Electronic Payment Fraud Further?

The reported fall in electronic payment fraud losses in 2025 suggests that prevention efforts can make a difference. But the work is not finished.

Criminals may change their methods when banks introduce stronger security measures. A scam that once relied on fake messages may later use phone calls, stolen devices or more convincing impersonation.

This is why public education matters. People need to know that a caller can sound professional and still be a criminal. A message can carry a bank’s name and still be fake. A transfer screenshot can look genuine and still fail to prove that money has arrived.

Schools, workplaces, community organisations and financial institutions can help spread simple safety advice.

Small businesses should also train staff to verify payment requests, especially when a message asks for an unusual transfer or a change in bank details.

The most effective response combines technology, public awareness, responsible banking practices and proper investigation.

Why Trust Matters in Digital Banking

I believe trust is one of the most important parts of banking. People need to feel confident that the money they save and the payments they make will be handled safely.

Digital services have helped many Nigerians manage money more conveniently. They allow people to pay bills, transfer funds and run businesses without travelling to a branch for every transaction.

But when customers lose money to fraud, that trust can be damaged. Some people may become afraid to use services that could otherwise make their lives easier.

The answer is not to reject digital banking. It is to improve security, explain risks clearly and respond properly when something goes wrong.

The latest fraud figures show that losses have fallen, but billions of naira were still reported lost in 2025. That should encourage continued action rather than create a false sense of safety.

Customers should protect their codes and passwords, check suspicious messages and report unauthorised transactions quickly. Banks must strengthen their systems and take complaints seriously.

Digital banking is most useful when people can use it with confidence. Protecting that confidence is a shared responsibility between customers, financial institutions and the wider system that supports electronic payments.

The writer of this article does not claim to know the individuals named personally. The information regarding their backgrounds as published on Global News Arena is based on independent online research.

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