Financial institutions in Nigeria lost N52.26 billion to fraud in 2024. This is a big jump from N17.67 billion in 2023, according to the latest report by the Nigeria Inter-Bank Settlement System (NIBSS).
The report highlights a 196% rise in fraud losses over five years, driven by the expansion of digital transactions. Although the number of reported fraud cases dropped by 31% from 101,624 in 2020 to 70,111 in 2024, the amount lost surged by 350%, rising from N11.61 billion to N52.26 billion within the same period.
The total reported fraud value compared to overall transactions dropped from 0.0053% in 2020 to 0.0022% in 2023 but climbed to 0.0040% in 2024. Attempted fraud cases rose by 338% between 2023 and 2024, with vulnerabilities at certain institutions contributing to the spike. Fraud activity peaked in Q2 and Q3 before declining in Q4.
In 2023, 80,658 unique customers fell victim to fraud, slightly lower than the 84,130 recorded in 2022. Despite the drop, NIBSS warns that fraud remains a serious issue, urging financial institutions to strengthen security measures and collaborate on fraud prevention.
Individuals aged 40 and above remained the primary targets for fraudsters in 2023, continuing a trend from previous years. The report stresses the need for better public awareness and enhanced regulations to curb financial fraud.
NIBSS, which oversees inter-bank transactions in Nigeria, compiles fraud data from Deposit Money Banks (DMBs), Mobile Money Operators (MMOs), Switches, and Payment Service Providers (PSPs). The NIBSS Industry Fraud Desk monitors and analyzes fraud incidents to provide industry-wide insights.
