Key Highlights
Nigerian banks recorded a 51% decrease in fraud losses, falling to N25.9 billion in 2025 from N52.26 billion in 2024.
The number of fraud cases also declined by 4%, from 70,111 in 2024 to 67,518 in 2025.
Internet and mobile platforms were the most targeted channels, accounting for 27,460 and 22,470 cases, respectively.
Internet banking saw the highest financial losses, with N13.37 billion lost across 4,507 cases.
Nigerian banks and other financial institutions experienced a significant reduction in fraud losses in 2025. Losses totaled N25.85 billion, a 51% decrease compared to the N52.26 billion recorded in 2024. This development suggests improvements in fraud prevention and detection mechanisms within the banking sector.
The decline in fraud losses was accompanied by a slight decrease in the overall number of fraud cases. According to Mr. Premier Oiwoh, Managing Director/Chief Executive of the Nigerian Interbank Settlement System (NIBSS), the number of cases dropped by 4%, from 70,111 in 2024 to 67,518 in 2025. He revealed this data during a keynote presentation at the Nigeria Electronic Fraud Forum (NeFF) Technical Kick-Off Session in Lagos.
While the overall trend is positive, certain channels remain particularly vulnerable. Internet and mobile platforms continue to be prime targets for fraudulent activities. These channels accounted for a substantial portion of fraud cases, with 27,460 cases reported on internet platforms and 22,470 on mobile platforms.
Notably, internet banking emerged as the most financially damaging channel, despite accounting for a relatively smaller number of cases. Losses stemming from internet banking fraud amounted to N13.37 billion across 4,507 incidents. This indicates that while the number of internet banking fraud cases might be lower, the financial impact of each successful attack is significantly higher. This is often due to sophisticated techniques used to target high-value accounts.
Data further suggests that social engineering remains a prevalent method used by fraudsters. The Central Bank of Nigeria (CBN) has consistently urged bank customers to be vigilant and avoid falling prey to scams that involve divulging personal or banking information. These scams often involve impersonating bank officials or using fake promotions to trick customers.
The reduction in fraud losses is likely attributable to a combination of factors, including increased investment in fraud detection technology by banks, enhanced customer education campaigns, and improved collaboration between financial institutions and law enforcement agencies. As digital banking continues to grow in Nigeria, financial institutions will need to remain proactive in combating fraud and protecting their customers' assets.
