Banks and their customers lost a combined N134.48 billion to fraud between 2020 and 2025, according to data from the Central Bank of Nigeria (CBN), highlighting the growing security challenges facing Nigeria’s rapidly expanding digital payments ecosystem.

 

 

Data contained in the CBN’s Nigeria Payments System Vision 2028 document showed that attempted fraud during the six-year period totalled N187.79 billion, while actual losses amounted to N134.48 billion. The losses were recorded across multiple payment channels, including ATMs, mobile banking, internet banking, point-of-sale (POS) terminals, e-commerce platforms, over-the-counter transactions, web channels and other electronic payment systems.

 

 

An analysis of the figures showed a steady rise in fraud-related losses over the years. Losses increased from N11.61 billion in 2020 to N12.77 billion in 2021, N14.32 billion in 2022, and N17.67 billion in 2023, before surging to N52.26 billion in 2024 — the highest annual loss recorded during the period.

 

 

The 2024 figure alone accounted for nearly 39 per cent of the total N134.48 billion lost between 2020 and 2025. Attempted fraud followed a similar trend, rising 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 sharply to N86.36 billion in 2024.

 

 

However, both attempted fraud and actual losses declined in 2025, dropping to N37.57 billion and N25.85 billion respectively. According to the CBN, the sharp increase in fraud losses recorded in 2024 was largely driven by a major internal fraud incident involving N30 billion.

 

 

“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 N30 billion. Web fraud incidents also increased by 169 per cent,” the report stated. The apex bank noted that the incident demonstrated how a single large-scale fraud case could significantly affect industry-wide loss figures despite improvements across several digital payment channels.

 

 

The report also highlighted changing fraud patterns across the banking sector over the years. In 2021, web-based fraud declined by 43 per cent, but overall losses increased due to a 276 per cent rise in POS-related fraud incidents. In 2022, fraud losses rose by 12 per cent, driven mainly by major fraud cases involving corporate accounts, while ATM fraud incidents surged by more than 2,000 per cent despite declines across mobile, POS and web channels.

 

 

By 2023, fraud losses increased by 23 per cent, largely due to a sharp rise in e-commerce-related fraud. “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 said.

 

 

Despite the persistent threat, the regulator reported a significant improvement in 2025, attributing the decline in fraud losses to stronger controls and increased collaboration among stakeholders in the financial sector. “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 document stated.

 

 

The CBN said it had strengthened oversight of the payments ecosystem and introduced collaborative safeguards aimed at reducing vulnerabilities across digital payment platforms. The findings come as Nigeria continues to witness rapid growth in electronic payments, driven by increasing adoption of instant transfers, mobile banking services, fintech platforms and digital wallets.

 

 

CBN Governor Olayemi Cardoso, in the foreword to the Payments System Vision 2028 document, said Nigeria’s payments ecosystem has become one of the most dynamic and innovative globally, powered by real-time payment systems, digital adoption and fintech-driven transformation. He noted that while digitalisation has expanded financial inclusion and reduced transaction costs, it has also introduced new risks that require stronger cybersecurity measures, improved fraud monitoring and enhanced consumer protection.

 

 

Under the Payments System Vision 2028 framework, the CBN plans to focus on security, trust, innovation, interoperability, inclusion and collaboration while strengthening cyber resilience and deploying emerging technologies to tackle increasingly sophisticated fraud threats.