David Akinmola
AS digital payment fraud continues to evolve across Nigeria’s financial services landscape, PalmPay has unveiled a new security feature designed to give users greater control over their accounts and reduce the growing incidence of unauthorised transactions.
The fintech company said its new Transaction Guard feature introduces an additional layer of verification for high-value transactions, a move aimed at strengthening consumer confidence as online fraud becomes increasingly sophisticated.
The development comes against the backdrop of rising cybercrime and identity theft targeting users of digital financial services. Industry reports indicate that more than 24.1 million online accounts in Nigeria have been compromised since 2004, with hundreds of thousands of additional cases reported in early 2026, underscoring growing concerns over the safety of personal and financial information.
Fraudsters have increasingly relied on phishing links, fake websites, identity impersonation and other social engineering techniques to trick unsuspecting users into disclosing sensitive information such as passwords, One-Time Passwords (OTPs), Bank Verification Numbers (BVNs) and National Identification Numbers (NINs).
PalmPay said the Transaction Guard feature was developed to address these emerging threats by allowing customers to set daily, monthly or single-transaction limits. Whenever a transaction exceeds the preset threshold, users are required to complete facial verification before the payment can be processed.
According to the company, the additional authentication layer is designed to prevent unauthorised fund transfers even where fraudsters have obtained a customer’s login credentials or OTP.
The feature, it noted, strengthens account security by ensuring that only verified account owners can authorise high-value transactions, thereby reducing the risk of financial losses arising from account compromise.
Head of Marketing at PalmPay,Femi Hanson, said security has become just as critical as speed and convenience in the rapidly expanding digital payments ecosystem.
He observed that as more Nigerians embrace digital financial services for everyday transactions, maintaining users’ trust has become essential for sustaining the growth of the cashless economy.
According to him, the company is continuously investing in technologies that provide customers with greater protection while giving them more control over their finances.
He said the Transaction Guard feature adds another layer of defence against fraud by requiring facial verification before eligible transactions can be completed, making it significantly more difficult for criminals to move funds from compromised accounts.
Industry analysts believe the introduction of stronger authentication measures reflects a broader shift within Nigeria’s financial technology sector towards proactive fraud prevention rather than post-incident resolution.
They noted that while digital financial inclusion has accelerated significantly in recent years, the increase in online transactions has also expanded opportunities for cybercriminals, making investment in advanced security infrastructure imperative.
According to them, multi-factor authentication, biometric verification and artificial intelligence-driven fraud detection systems are becoming standard security tools among financial institutions seeking to protect customers against increasingly sophisticated attacks.
They added that beyond technology, sustained public awareness remains critical, as many successful fraud cases continue to stem from customers unknowingly sharing confidential banking information with fraudsters posing as bank officials, fintech representatives or government agencies.
PalmPay explained that users can activate the Transaction Guard feature by accessing the Security Centre within the PalmPay application, selecting Transaction Guard and completing the required verification process.
The company maintained that encouraging customers to utilise built-in security features would significantly improve the safety of digital transactions while reinforcing confidence in electronic payment platforms.
Stakeholders said the initiative aligns with wider efforts across Nigeria’s financial services industry to strengthen cybersecurity, protect consumers and sustain confidence in the country’s fast-growing digital payments ecosystem as cashless transactions continue to gain momentum..
