The Central Bank of Nigeria (CBN) has disclosed that banks and their customers lost a combined N134.48 billion to fraudulent activities between 2020 and 2025. This revelation comes from the CBN's Nigeria Payments System Vision 2028 report, which also indicated that total attempted fraud during the same period reached N187.79 billion. The figures highlight the growing threat of fraud as digital payments expand across the country.
Fraud Losses Across Multiple Channels
The losses were recorded across various channels including ATMs, internet banking, mobile banking, POS terminals, e-commerce platforms, cheques, over-the-counter transactions, and other electronic payment systems. The data shows a steady increase in fraud losses over the years, with a sharp spike in 2024.
Year-by-Year Breakdown of Losses
In 2020, fraud losses amounted to N11.61 billion. This rose to N12.77 billion in 2021, N14.32 billion in 2022, and N17.67 billion in 2023. The most significant jump occurred in 2024, when losses surged to N52.26 billion—accounting for approximately 39% of the total losses over the six-year period. However, in 2025, losses declined to N25.85 billion.
Attempted fraud followed a similar pattern, rising from N13.26 billion in 2020 to N86.36 billion in 2024, before dropping to N37.57 billion in 2025.
Key Drivers of the 2024 Surge
The CBN attributed the extraordinary increase in 2024 losses primarily to a single major internal fraud incident involving N30 billion. This case significantly skewed the overall industry figures. The report noted that while fraud in internet banking, mobile banking, and POS channels declined, total losses still rose by 196% in 2024 due to this internal case. Additionally, web-based fraud incidents increased by 169% during the same period.
Shifting Fraud Patterns Over the Years
Fraud patterns have evolved over the years. In 2021, web fraud dropped by 43%, but losses increased due to a 276% rise in POS fraud incidents. In 2022, losses rose by 12%, driven by major cases involving corporate accounts, while ATM fraud surged by over 2,000%. In 2023, losses increased by 23%, largely due to a massive spike in e-commerce fraud, which rose by 1,961%.
Improvement in 2025
Despite the challenges, 2025 recorded a major improvement, with electronic payment fraud declining by 51%. The CBN credited this decline to stricter regulatory controls, improved monitoring systems, stronger industry collaboration, and enhanced fraud prevention measures.
The report stated: "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."
Digital Payments Expansion and Security Concerns
The report underscores that Nigeria's rapid shift toward digital banking, mobile payments, fintech platforms, and instant transfers has increased efficiency but also expanded exposure to fraud risks. The CBN noted that coordinated efforts between regulators and financial institutions have strengthened oversight in recent years, but emphasized that the evolving nature of fraud continues to pose challenges for the country's growing digital financial ecosystem.
