Nigerian Banking Sector Fraud Sees Threefold Increase-NIBSS.
According to a statement from an industry regulator on Wednesday, money lost to fraud in Nigeria’s banking sector has almost tripled over the last five years.
An analysis released by the Nigeria Inter-Bank Settlement System revealed that 52.3 billion naira ($34.8 million) was lost to fraud in 2024, compared to 11.6 billion naira in 2020. The report indicated that fraudsters illegally attempted to obtain 86.4 billion naira in 2024.
These figures were reported shortly after the latest GDP statistics showed a fourth-quarter growth of 3.8 per cent, the highest rate in three years, primarily fueled by the services sector, which includes finance and insurance.
Nigeria’s digital payments system is considered one of the strongest in Africa, and tech startups in the nation secured approximately $400 million in funding in 2024.
Such financial services have gained greater significance recently due to a cash shortage and currency reforms, which have driven more users to abandon physical banknotes.
“The amount lost to fraud has increased over the past five years along with the growth of financial transactions in the digital payments sector,” NIBSS said.
Reports indicate that fraudsters are employing various tactics, including the conversion of funds into gift cards and the establishment of accounts using the stolen identities of elderly individuals, minors, and foreigners.
The report suggested that 400 million naira had been deposited into accounts created with the stolen identities of senior citizens.
Source: NEWSCENTRAL
