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The numbers are surprising, but the reality is much more terrifying. Between 2020 and 2025, fraudsters managed to loot N134.48 billion from Nigeria’s financial system — enough to build thousands of schools or hospitals. But there’s one thing your official report doesn’t reveal: the most devastating heists don’t involve sophisticated hackers in dark basements. It involves a bank employee with legitimate access, a few clicks, and N30 billion gone.
This is the uncomfortable reality of fraud in Nigeria today. The Central Bank of Nigeria’s _Payment System Vision 2028_ document revealed that in 2024 alone there was a loss of N52.26 billion – an increase of 196 percent from the previous year. And the culprit? “Major internal fraud case involving N30 billion,” CBN admitted. The biggest threat to your money may not be cybercriminals in Russia, but rather the people processing your transactions at the bank.
The Nigerian Inter-Bank Settlement System Fraud Report 2024 paints a more disturbing picture of how these predators operate. In one documented case, an Asia-based syndicate opened corporate accounts at three Nigerian banks using the same selfie for BVN verification – with geolocation tracing back to Hong Kong. On July 30, 2024, an oil and gas company account was created using a registered company number copied from the internet and fake documents. Within hours, N335 million in fraudulent proceeds was in the account and quickly transferred to an unlicensed BDC operator. The EFCC and NIBSS eventually recovered N1.735 billion, but the damage was already done.
“The 2024 figure alone accounts for nearly 39 per cent of the total loss of N134.48 billion between 2020 and 2025,” the CBN document somberly noted. This means that in one year, the fraudsters managed to achieve what would normally take four years to steal.
The tactics continue to evolve. In 2021, as banks tightened web security, fraud losses were still on the rise — as POS-related incidents jumped by 276 percent. In 2022, ATM fraud will jump by more than 2,000 percent. In 2023, e-commerce fraud will jump by 1,961 percent. “Mobile, POS and Web channels recorded moderate increases,” CBN acknowledged. The pattern is clear: fraudsters don’t back down – they get back to work.
EFCC Chairman Ola Olukoede recently revealed how the remote takeover scheme works. The physical device is connected to the bank system with the help of the staff members involved. Once connected, collaborators in Eastern Europe or America control the bank’s platform remotely, moving billions of dollars in seconds. “In every case we investigated, there was clear evidence of insider involvement,” said the EFCC Chairman. More than N20 billion was recovered from hackers who broke into six Nigerian banks this way. But how many have yet to recover?
In May 2025, two bank employees were indicted for allegedly disclosing the bank’s server and domain credentials, enabling an attempted cyberattack. The prosecution claims the Electronic Payment Services Manager unlawfully shared the bank’s IP and domain credentials, while his accomplices purchased special laptops and flash drives to bypass security protocols. This is not an isolated incident – it is a growing epidemic of internal betrayal.
The CBN’s 2024 Financial Stability Report flagged more than 30 Ponzi-style investment schemes exploiting digital currency narratives. With 70 percent of fraud losses by 2024 related to digital platforms, CBN Governor Olayemi Cardoso warned that fintech innovation has created new vulnerabilities. “In Nigeria, more than $56 billion in crypto-related transactions were recorded between July 2022 and June 2023,” he said. Fraudsters are now hiding behind cryptocurrencies to launder the proceeds, making recovery nearly impossible.
The most common attack methods, according to NIBSS, were phishing at 31 percent, SIM swap fraud at 25 percent, and identity theft and credential compromise at 21 percent. This is not an abstract threat – it is an everyday reality. A simple text message claiming your bank account has been compromised could be the first step in draining your life savings.
So how do you protect yourself?
First, never share your PIN, OTP, or BVN with anyone — even someone claiming to be a bank official. Banks will never ask for these details over phone or SMS.
Second, immediately verify every transaction notification. If you receive an alert for a transaction you did not authorize, contact your bank’s fraud desk within minutes.
Third, be suspicious of unsolicited investment opportunities that promise very large profits. If it sounds too good to be true, it’s a scam.
Fourth, use two-factor authentication wherever possible and avoid conducting sensitive transactions on public Wi-Fi networks.
Fifth, monitor your account regularly and set transaction alerts for every activity, no matter how small.
Sixth, report suspicious activity to your bank and the EFCC without delay — the longer you wait, the more difficult it will be to recover stolen funds.
The CBN has set an ambitious target to reduce fraud losses to less than 0.001 percent of all transactions by 2028 through NIN/BVN linkage, AI fraud detection, POS geotagging and mandatory fraud response within 30 minutes. But these actions mean nothing without your vigilance. As Cardoso himself said, “People’s money should be safer in digital systems than under their mattresses.” But the mattress doesn’t have an inside plan to steal your funds.
Here’s the harsh reality: Nigeria’s financial system is under siege, and the enemy is not always on the outside. The N134.48 billion question is not whether banks and regulators can secure the system – but whether you can stay one step ahead of the predators. Arm yourself with knowledge, question every transaction, and remember: in a country where fraudsters thrive, your greatest defense is your own conscience. While you’re off guard, they’re watching, waiting, and ready to attack.
By Allen Durueke
