Banks, Customers Lost N134.48bn to Fraud in Six Years, CBN Reveals

Nigerian banks and their customers lost a total of N134.48bn to fraud between 2020 and 2025, underscoring the growing security challenges accompanying the rapid expansion of digital financial services across the country.

The figure is contained in the Central Bank of Nigeria’s Nigeria Payments System Vision 2028 document, which highlighted the increasing sophistication of fraud schemes targeting the country’s banking and payment ecosystem.

According to the report, total attempted fraud during the six-year period stood at N187.79bn, out of which N134.48bn was successfully stolen, despite investments by financial institutions in cybersecurity infrastructure and fraud prevention mechanisms.

The losses were recorded across a broad range of payment channels, including over-the-counter transactions, Automated Teller Machines, cheques, Point of Sale terminals, Internet banking, mobile banking platforms, e-commerce channels and other electronic payment systems.

An analysis of the data revealed a steady rise in fraud-related losses over the years, reflecting both the rapid growth in digital transactions and the evolving tactics employed by fraudsters.

Actual losses increased from N11.61bn in 2020 to N12.77bn in 2021 before climbing further to N14.32bn in 2022. In 2023, the amount lost to fraud rose to N17.67bn.

However, the most dramatic increase occurred in 2024, when fraud losses surged to N52.26bn, representing the highest annual loss recorded within the period under review. The 2024 figure accounted for nearly 39 per cent of the total amount lost between 2020 and 2025.

Similarly, attempted fraud rose consistently during the same period, increasing from N13.26bn in 2020 to N14.48bn in 2021 and N16.41bn in 2022. The value of attempted fraudulent transactions climbed to N19.72bn in 2023 before soaring to N86.36bn in 2024.

The report, however, indicated an improvement in 2025, with attempted fraud declining significantly to N37.57bn, while actual losses dropped to N25.85bn.

The apex bank attributed the sharp rise in fraud losses recorded in 2024 largely to a major internal fraud incident involving N30bn. According to the document, although fraud cases linked to Internet banking, mobile banking and Point of Sale channels declined during the year, overall losses still rose sharply because of the large-scale internal breach.

“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 report stated.

The findings highlight the increasing vulnerability of Nigeria’s financial system as the country continues to embrace cashless transactions. Over the past decade, the CBN has aggressively promoted digital payments through policies aimed at deepening financial inclusion, reducing cash handling costs and modernising the payments ecosystem.

The adoption of mobile banking applications, instant payment platforms and fintech services has accelerated significantly, with millions of Nigerians now relying on digital channels for everyday transactions.

Industry analysts say while digital innovation has expanded access to financial services, it has also created new opportunities for cybercriminals and insider fraud. They argue that stronger cybersecurity frameworks, enhanced customer education, improved identity verification systems and closer collaboration among banks, fintech firms and regulators will be critical to safeguarding the integrity of Nigeria’s payments system.

The Nigeria Payments System Vision 2028 outlines the CBN’s strategic plan to build a secure, resilient and globally competitive payments ecosystem capable of supporting the country’s digital economy aspirations.