Banking Fraud Hits 80,000 Customers in Nigeria, Reveals NIBSS Report.

06 May 2024

Nigeria Inter-Bank Settlement System (NIBSS) has reported that over 80,658 bank customers fell victim to fraud in 2023. This figure, while marking a 4 percent decrease from the 84,130 victims in 2022, continues to cast a dark cloud over the burgeoning electronic payments sector in Nigeria.

The report, titled ‘Annual Fraud Landscape’, covers the period from January to December 2023 and highlights a worrying trend. Despite a six percent decrease in the total number of reported fraud incidents, the actual financial losses suffered by victims surged by 23 percent.

The fraudsters, who primarily targeted individuals aged 40 and above, exploited vulnerabilities in mobile banking for most of their attacks. Mobile channels saw a five percent increase in attacks compared to 2022, making them the most susceptible to fraudsters. Social engineering remained the fraudsters’ weapon of choice.

The total financial loss to fraud in 2023 ballooned to N17.67 billion. Lagos state bore the brunt of these fraudulent activities, recording the highest number of fraud cases (48 percent of the total) and suffering the most financial losses (49 percent).

In a departure from previous years, where fraudsters focused mainly on direct withdrawals, they are now diversifying their illicit activities and exploring alternative channels to expend their ill-gotten gains.


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