Nigerian banks and their customers suffered cumulative fraud-related losses of N134.48 billion between 2020 and 2025, according to new data released by the Central Bank of Nigeria (CBN), underscoring the growing security risks associated with the country’s rapidly expanding digital payment ecosystem.
The figures, contained in the apex bank’s Nigeria Payments System Vision 2028 document, revealed that fraudsters attempted to steal a total of N187.79 billion during the six-year period. Of that amount, N134.48 billion was successfully lost to fraudulent activities across various electronic payment channels.
The report highlights the increasing sophistication of financial crimes as Nigeria witnesses unprecedented growth in electronic banking, fintech services, mobile payments and digital financial inclusion.
According to the CBN, the recorded losses were spread across multiple payment platforms, including Automated Teller Machines (ATMs), mobile banking applications, internet banking platforms, Point-of-Sale (POS) terminals, e-commerce transactions, web-based payment channels, over-the-counter banking services and other electronic payment systems.
A year-by-year analysis of the data indicates that fraud-related losses increased steadily over the period under review before reaching an unprecedented peak in 2024.
In 2020, financial institutions and their customers lost N11.61 billion to fraud. The figure rose moderately to N12.77 billion in 2021 before increasing further to N14.32 billion in 2022.
By 2023, fraud losses had climbed to N17.67 billion, reflecting the continued evolution of cybercrime targeting Nigeria’s growing digital payments infrastructure.
However, the most dramatic increase occurred in 2024 when total fraud losses surged to N52.26 billion—the highest annual figure recorded throughout the six-year period.
The 2024 losses alone represented almost 39 per cent of the cumulative N134.48 billion lost between 2020 and 2025, highlighting the extraordinary scale of fraudulent activities recorded during that year.
Similarly, attempted fraud followed a comparable upward trajectory.
The CBN reported that fraud attempts stood at N13.26 billion in 2020 before rising to N14.48 billion in 2021.
The figure increased further to N16.41 billion in 2022 and N19.72 billion in 2023.
By 2024, attempted fraud skyrocketed to N86.36 billion, reflecting the increasing sophistication and frequency of attacks targeting Nigeria’s financial institutions.
Despite the alarming spike in 2024, the report revealed a notable improvement in 2025.
Attempted fraud declined significantly to N37.57 billion, while actual losses dropped to N25.85 billion, representing one of the strongest annual improvements recorded during the review period.
According to the apex bank, the extraordinary increase in fraud losses during 2024 was largely attributable to a single large-scale internal fraud incident involving N30 billion.
The regulator explained that although fraud levels declined across several digital payment channels, the isolated internal case significantly distorted the industry’s overall fraud statistics.
The report stated:
“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 CBN observed that the incident demonstrated how one major internal compromise within the banking system could significantly impact industry-wide fraud figures despite improvements in other payment channels.
The report also traced how fraud patterns evolved over the six-year period.
In 2021, web-based fraud incidents declined by approximately 43 per cent compared to the previous year.
Nevertheless, total fraud losses still increased because Point-of-Sale (POS) fraud rose sharply by about 276 per cent, reflecting the rapid expansion of POS transactions nationwide.
The following year witnessed another shift in criminal tactics.
In 2022, fraud losses increased by about 12 per cent, largely driven by high-value fraud involving corporate accounts.
The report also revealed an extraordinary increase in ATM-related fraud during the same year.
According to the CBN, ATM fraud incidents surged by more than 2,000 per cent despite noticeable declines in fraud involving mobile banking, POS terminals and web-based payment systems.
By 2023, electronic commerce emerged as the most vulnerable payment channel.
The report disclosed that fraud losses increased by approximately 23 per cent during the year, mainly because of an unprecedented 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 stated.
The regulator noted that cybercriminals have continued to adapt their methods in response to evolving payment technologies, requiring financial institutions to constantly upgrade their fraud prevention systems.
Despite these persistent threats, the CBN expressed optimism over the progress achieved in 2025.
According to the report, electronic payment fraud declined by approximately 51 per cent during the year due to stronger regulatory oversight, improved collaboration among financial institutions and enhanced fraud prevention mechanisms.
“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 report noted.
The apex bank attributed the improvement to coordinated efforts involving commercial banks, payment service providers, fintech companies, law enforcement agencies and financial regulators.
It added that greater information sharing among stakeholders has improved the industry’s ability to detect suspicious transactions, respond to threats more quickly and prevent large-scale fraud.
The CBN further disclosed that it has strengthened supervision of Nigeria’s payments ecosystem while introducing additional safeguards designed to reduce vulnerabilities across digital payment platforms.
The findings come at a time when Nigeria continues to experience remarkable growth in electronic payments.
Over the past few years, millions of Nigerians have increasingly embraced mobile banking, instant transfers, digital wallets, online shopping and fintech applications, accelerating the country’s transition toward a cashless economy.
While the digital transformation has significantly expanded financial inclusion and improved access to banking services, it has also created new opportunities for cybercriminals to exploit technological vulnerabilities.
In the foreword to the Nigeria Payments System Vision 2028 document, CBN Governor Olayemi Cardoso described Nigeria’s payments ecosystem as one of the fastest-growing and most innovative in the world.
According to him, advancements in real-time payment systems, digital banking and financial technology have transformed how Nigerians conduct financial transactions while reducing transaction costs and improving access to financial services.
However, Cardoso cautioned that rapid digitalisation has also introduced increasingly sophisticated cyber threats that require continuous investment in security infrastructure.
He stressed the importance of strengthening cybersecurity frameworks, enhancing fraud monitoring capabilities and improving consumer protection measures to sustain confidence in Nigeria’s digital financial system.
Under the Payments System Vision 2028, the Central Bank plans to prioritise security, trust, innovation, interoperability, financial inclusion and collaboration among industry stakeholders.
The strategy also includes strengthening cyber resilience, encouraging the deployment of emerging technologies, improving regulatory oversight and enhancing cooperation across the financial sector to combat increasingly sophisticated fraud schemes.
The CBN said these measures are expected to safeguard Nigeria’s growing digital payments ecosystem while supporting continued innovation, protecting consumers and reinforcing public confidence in electronic financial services as the country advances toward a more digitally driven economy.
