Nigeria’s Banking Fraud Surges to N52bn Over Four Years – NIBSS

The scale of fraudulent transactions within Nigeria’s banking sector has escalated dramatically, surging from N11 billion in 2020 to N52 billion in 2024, according to recent data from the Nigeria Inter-Bank Settlement System (NIBSS).

A newly released analysis by NIBSS indicates that financial fraud losses reached N52.3 billion in 2024, marking a staggering increase over the past four years. Fraudsters reportedly attempted to siphon N86.4 billion within the same period.

This revelation comes amid fresh data from the National Bureau of Statistics (NBS), which recorded a 3.8% GDP growth in Q4 2024—its fastest in three years—driven by key service industries such as finance and insurance.

NIBSS attributed the rising fraud cases to the expansion of digital financial transactions, noting that bad actors are leveraging sophisticated techniques to exploit vulnerabilities in the banking system.

“Fraudsters employ various tactics, including withdrawing illicit funds through gift cards and opening bank accounts using stolen identities belonging to senior citizens, minors, and foreign nationals. Additionally, accounts created with these fraudulent identities received over N400 million,” the report highlighted.

Despite these alarming figures, NIBSS assured that recovery efforts are underway, with some funds already reclaimed. Investigations into bank employees linked to these fraudulent activities are also in progress.

As financial transactions become increasingly digital, regulatory technology solutions and compliance automation will be critical in mitigating fraud risks and enhancing financial security.