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Industry Collaboration, Stronger Controls Drive Decline Despite Persistent Risks
Nigeria recorded a significant reduction in digital payment fraud losses in 2025, with total losses falling to ₦25.85 billion, representing a 51 per cent decline from ₦52.26 billion in 2024, according to the Nigeria Inter-Bank Settlement System (NIBSS).
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The figures were disclosed by Premier Oiwoh, Managing Director and Chief Executive Officer of NIBSS, at the 2026 Nigeria Electronic Fraud Forum Technical Kickoff Session held in Lagos on Wednesday.
Fraud Cases Decline, Loss Value Remains Key Concern
Speaking at the forum themed “Shrinking Fraud Losses With ISO 20022 & Identity Management,” Oiwoh said that while the number of fraud incidents has consistently declined over the past five years, the monetary value of losses remains the primary challenge for the financial industry.
“Looking at industry fraud over the past five years, the number of cases has declined significantly. While case counts are important, what matters more is the value,” he said.
According to him, actual fraud losses stood at ₦17.67 billion in 2023, before surging to ₦52.26 billion in 2024, largely due to a single ₦31.1 billion fraud incident involving one entity. Losses dropped sharply in 2025 following coordinated industry interventions.
Over 13,000 Fraud Suspects Captured on Person of Interest Portal
Oiwoh revealed that 13,417 individuals linked to fraudulent activities in Nigeria’s financial system have been captured on the Person of Interest (POI) Portal, jointly developed by NIBSS, the Central Bank of Nigeria (CBN), security agencies and other regulators.
He noted that the portal, which contains names and photographs of suspected fraudsters, has been actively utilised by law enforcement agencies since data capture began in 2019.
Lagos, Abuja Lead in Reported Fraud Incidents
Geographically, Lagos State continues to account for the highest concentration of fraud cases, reflecting its status as Nigeria’s commercial hub. Abuja (FCT) has also recorded a noticeable increase, while Ogun, Rivers and Delta States each contributed between 2.09 per cent and 2.51 per cent of total reported incidents.
Industry data presented at the forum showed that fraud incidents declined from 123,918 cases in 2021 to 67,518 cases in 2025, representing a steady downward trend, with a modest four per cent reduction in the last year alone.
E-Commerce and Internet Banking Most Affected Channels
By transaction channel, e-commerce and internet banking remain the most vulnerable to fraud, followed by point-of-sale (POS), mobile, and web-based platforms.
Oiwoh identified social engineering as the most common fraud technique, warning that insider abuse now poses the greatest threat to the payments ecosystem.
“Insider involvement is high, and recent investigations have confirmed this. Many of the fraud cases we are seeing today involve insiders, including former bankers,” he said.
Industry Action Prevents ₦20bn in Potential Losses
The NIBSS CEO disclosed that coordinated industry measures helped prevent about ₦20 billion in potential fraud losses in 2024 alone.
However, he expressed concern over a 34 per cent decline in fraud reporting in the final quarter of 2025, warning that non-reporting undermines effective fraud detection and enforcement.
“While some institutions reported zero incidents, non-reporting is unacceptable. Reporting enables tracking and investigation. In several cases, individuals involved in fraud simply moved to other institutions because incidents were not reported,” he said.
ISO 20022 and Identity Management as Critical Tools
The adoption of the ISO 20022 messaging standard and enhanced identity management systems were also identified as key priorities at the forum. These measures are seen as vital for strengthening transaction controls, improving transparency, and curbing digital payment fraud in Nigeria.
COVER PHOTO: HDFC Ergo
