By Bakare Ogunleye, Abuja
The Central Bank of Nigeria (CBN) has raised fresh concerns over the escalating rate of financial fraud in the country, revealing that fraudulent activities surged by 45% in the past year alone, with a staggering 70% of recorded losses traced to digital and online platforms.
The data, released in a recent fraud report compiled by the apex bank, points to a worrying trend of increased vulnerability in Nigeria’s rapidly expanding digital financial ecosystem. The CBN noted that while the growth of fintech and mobile banking has improved financial inclusion, it has also created new opportunities for cybercriminals to exploit unsuspecting users and weak infrastructure.
“The rise in digital transactions, while commendable for economic inclusion, has unfortunately also provided fertile ground for fraudsters to innovate,” the report stated. “A significant portion of these fraud incidents occurred through mobile apps, USSD channels, internet banking, and e-payment platforms.”
According to the report, phishing attacks, identity theft, SIM swap fraud, fake investment schemes, and social engineering were among the most common tactics employed by perpetrators. Financial institutions, particularly deposit money banks and fintech startups, are now facing growing pressure to strengthen security protocols and customer verification systems.
The CBN also highlighted poor cybersecurity awareness among users as a contributing factor, noting that many customers unknowingly expose sensitive information to fraudsters through unsecure channels or respond to fraudulent messages impersonating banks.
“Customer education remains a critical line of defense,” the report added. “We urge banks and payment service providers to intensify public awareness and digital hygiene campaigns.”
In response to the rising threat, the CBN said it is working closely with the Nigeria Inter-Bank Settlement System (NIBSS), law enforcement agencies, and private cybersecurity firms to develop stronger regulatory frameworks and faster fraud response mechanisms. Plans are also underway to introduce stricter Know Your Customer (KYC) requirements and mandatory multi-factor authentication across all financial platforms.
Financial analysts say the sharp increase in fraud cases could undermine public confidence in Nigeria’s digital financial system if not urgently addressed. “Digital banking is the future, but its integrity must be safeguarded,” said Adeola Ogunleye, a financial risk consultant based in Lagos. “Without stronger defenses, the trust gap between financial institutions and consumers may widen.”
The report comes at a time when Nigeria is pushing for a cashless economy and greater adoption of digital financial services, including the eNaira, the country’s central bank digital currency (CBDC).
As the digital landscape continues to evolve, the CBN’s latest findings serve as a critical reminder of the need for collective vigilance—from regulators to banks and everyday users—to combat financial fraud and ensure the safe growth of Nigeria’s digital economy.
