CBN Reveals ₦134 Billion Lost to Banking Fraud Between 2020 and 2025

Fraudsters Stole ₦134.48 Billion from Banks and Customers in Six Years

Nigerian banks and their customers lost a combined ₦134.48 billion to fraud between 2020 and 2025, according to data released by the Central Bank of Nigeria (CBN). The figures, contained in the Nigeria Payments System Vision 2028 document, highlight the growing security challenges facing the country's rapidly expanding digital payments ecosystem.

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The report showed that attempted fraud across the banking and payments industry reached ₦187.79 billion during the six-year period, while actual losses amounted to ₦134.48 billion. The losses were recorded across multiple channels, including internet banking, mobile banking, Point-of-Sale (PoS) terminals, e-commerce platforms, ATMs, web-based transactions and over-the-counter banking services.

Fraud Losses Increased Sharply Over the Period

According to the CBN data, fraud-related losses rose steadily over the years, increasing from ₦11.61 billion in 2020 to ₦12.77 billion in 2021 and ₦14.32 billion in 2022. Losses climbed further to ₦17.67 billion in 2023 before surging to ₦52.26 billion in 2024, the highest level recorded during the review period.

The 2024 figure alone accounted for nearly 39 per cent of the total fraud losses recorded between 2020 and 2025, underscoring the scale of financial crime challenges confronting banks, payment service providers and consumers.

Although fraud losses declined to ₦25.85 billion in 2025, the amount remained significantly above levels recorded earlier in the decade.

Major Internal Fraud Incident Drove 2024 Spike

The CBN attributed the dramatic increase in losses during 2024 largely to a major internal fraud case involving approximately ₦30 billion. According to the regulator, improvements in some digital payment channels were overshadowed by the impact of the single large-scale incident.

The report noted that while fraud involving internet banking, mobile banking and PoS transactions declined during the period, overall industry losses still increased significantly because of the internal fraud case and a rise in web-based fraud incidents.

Digital Payment Expansion Brings New Risks

The findings come as Nigeria continues to experience rapid growth in digital financial services, mobile payments and fintech adoption.

Industry analysts note that increased transaction volumes create greater opportunities for fraudsters to exploit system vulnerabilities and target unsuspecting customers through phishing schemes, account compromises, identity theft and social engineering attacks.

According to data presented by the Nigeria Inter-Bank Settlement System (NIBSS), e-commerce and internet banking channels remain among the most targeted platforms, while insider abuse and social engineering continue to represent significant threats.

Regulators Strengthen Anti-Fraud Measures

In response to rising fraud risks, the CBN has introduced several measures aimed at strengthening the resilience of the financial system.

The apex bank recently directed banks to reduce fraud response times to less than 30 minutes and has continued to work with financial institutions and payment operators to improve monitoring, identity management and fraud prevention systems.

The regulator has also emphasised the importance of stronger cybersecurity frameworks, enhanced customer awareness and improved collaboration among stakeholders across the banking ecosystem.

Implications for Financial Services and Consumers

The scale of fraud losses highlights the importance of maintaining trust within Nigeria’s financial system as digital transactions become increasingly dominant.

For banks and fintech firms, rising fraud risks could increase operational costs through investments in cybersecurity, compliance and fraud monitoring technologies. For consumers, the findings reinforce the need for greater vigilance when conducting electronic transactions and sharing personal financial information online.

Stakeholders believe sustained investment in cybersecurity infrastructure and customer education will be critical to reducing future losses and protecting confidence in digital financial services.

Outlook

As Nigeria advances its cashless and digital economy agenda, regulators and financial institutions are expected to intensify efforts to combat electronic fraud. Enhanced fraud detection systems, stronger identity verification processes and improved industry collaboration are likely to play a central role in future risk management strategies.

The CBN's Nigeria Payments System Vision 2028 framework also signals a broader commitment to building a safer and more resilient payments ecosystem capable of supporting continued growth in digital finance.

Conclusion

The loss of ₦134.48 billion to fraud between 2020 and 2025 underscores the growing security challenges accompanying Nigeria’s digital financial transformation. While digital payments continue to expand access to financial services, the figures highlight the need for stronger cybersecurity measures, faster fraud response mechanisms and increased public awareness to safeguard both institutions and consumers.

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