Recent Surge in Fraud in Nigeria’s Financial Sector – NIBSS Report
An alarming increase of 496.96% in financial sector fraud has been recorded in Nigeria from 2019 to 2023, primarily attributed to the surge in electronic payments.
This revelation was made in the latest ‘Annual Fraud Landscape’ report by the Nigeria Inter-Bank Settlement System.
According to the report, bank customers in Nigeria suffered losses amounting to N59.33 billion over the same period, escalating from N2.96 billion in 2019 to N17.67 billion in 2023.
Highlighting the concerning trend, the report stated, “The escalation in fraud losses mirrors the expanding scope of digital financial transactions.”
The data showed that the mobile channel stood out as the most lucrative for fraudsters in 2023, with a Fraud Interest Index of 34%. Internet Banking and POS followed closely with 33.99% and 26.37% respectively, as stated by NIBSS.
This surge in fraud cases coincides with a remarkable 463% increase in electronic transactions, projected to reach N611.06 trillion in 2023 from N108.42 trillion in 2019.
Furthermore, mobile subscriptions witnessed a growth of 21.68%, soaring from 184.43 million in December 2019 to 224.41 million in 2023.
NewsNow reported that electronic payments amounted to N234 billion in the first quarter of 2024.