As digital scams in Nigeria become more sophisticated, PalmPay is stepping up efforts to educate customers on available security tools, including the USSD Lock, Night Guard, and an upgraded Security Center. This comes amid a 51% drop in digital payment fraud losses to N25.85 billion in 2025, yet social engineering remains a significant concern, according to NIBSS.
Real-Life Scam Experiences Highlight Growing Threats
Recent reports shared online illustrate how quickly ordinary interactions can become financial risks. In one case, a Nigerian user on X lost nearly N400,000 after clicking a link related to an alleged FRSC traffic offence. She entered her card details on what appeared to be a legitimate website, only to discover it was part of a scam. This incident underscores how phishing attempts can look convincing, especially when they appear to come from familiar institutions or government agencies.
In another social media post, a user described how money was debited from his account after his mobile phone was stolen. Losing a phone is stressful enough, but when the device is linked to financial accounts, the situation escalates into a major security concern. These stories reflect the broader challenges facing digital banking users in Nigeria today.
Why Digital Payment Fraud Persists Despite Decline
The wider digital payments landscape shows why these experiences matter. Although digital payment fraud losses fell by 51% to N25.85 billion in 2025, NIBSS has continued to identify social engineering as a significant concern. Fraud techniques such as phishing, SIM-swap attacks, and account compromise are evolving, making them harder to detect.
For customers, the consequences go beyond losing money. A compromised account or stolen phone can disrupt everyday transactions and leave people uncertain about the security of their finances. It is against this backdrop that PalmPay is placing more attention on helping customers understand potential threats and make better use of available security tools through its 'PalmPay Dey For You' campaign.
Security Tools PalmPay Customers Can Use
PalmPay offers several tools designed to provide additional protection in specific situations. For instance, customers who lose their phones or have them stolen can use the *861*12# USSD Lock to restrict access to their PalmPay account and help prevent unauthorised transactions. This tool is critical for mitigating the risk of financial loss after device theft.
Another tool, Night Guard, allows customers to set protection hours between 11:00 PM and 7:00 AM, with additional verification required for transfers during the selected period. Similarly, the Large Transaction Shield adds another layer of verification when customers attempt to carry out large-value transactions. These features aim to give users more control over their account security.
Staying Alert and Using the Security Center
The experiences Nigerians continue to share online point to an important reality: staying safe while using digital financial services requires more than sophisticated security systems. Customers also need to know how to identify warning signs and what steps to take when something appears suspicious. Simple precautions can make a difference, such as not sharing PINs, OTPs, or passwords, being careful with unexpected links and messages, and confirming who is contacting them before taking action.
PalmPay’s upgraded Security Center brings several of these protection tools and secure support options together, giving customers a central place to manage their account security and access help when needed. As scams become more sophisticated, the experiences of everyday Nigerians show why digital safety requires both awareness and the right tools.
Through its 'PalmPay Dey For You' campaign, PalmPay says it is focused on providing secure, reliable and accessible financial services while continuing to strengthen the systems, tools and education that support safer digital banking. Customers can update their PalmPay app, explore the available security features, and visit the PalmPay Security Centre to learn more about protecting their accounts.
