Financial institutions in Nigeria lost N52.26 billion to fraud in 2024 according to the latest report by the Nigeria Inter-Bank Settlement System (NIBSS).
This represents a significant increase of N34.59 billion compared to the N17.67 billion recorded in 2023.
The NIBSS Fraud Report documents fraud activities, whether attempted or successful, and related metrics identified by local financial institutions or agencies.
According to the latest report, the amount lost to fraud has increased by 196% over the past five years, in parallel with the growth of financial transactions in the digital payments sector.
Although the annual fraud count reported decreased by 31%, from 101,624 in 2020 to 70,111 in 2024, the amount lost to fraud grew by 350%, rising from N11.61 billion to N52.26 billion within the same period.
Total value of transactions
The report indicated that the ratio of total reported fraud value to the total value of transactions recorded over the last five years showed a decrease from 0.0053% in 2020 to 0.0022% in 2023, followed by an increase to 0.0040% in 2024.
- The report also highlighted a 338% increase in attempted fraud between 2023 and 2024, attributing this rise to system vulnerabilities at certain institutions. Compared to the previous quarter, fraud activity increased in 2024, with attempted amounts and actual losses rising significantly in Q2 and Q3 before declining in Q4.
- In 2023, a total of 80,658 unique customers fell victim to fraud, which is 4% less than the 84,130 customers recorded in 2022.
NIBSS emphasized that this decline does not diminish the severity of the issue and urged the financial industry to remain vigilant, enhance security measures, and collaboratively address the persistent challenges posed by fraud.
What you should know
According to NIBSS, individuals aged 40 and above continued to be the primary targets for fraudsters in 2023, mirroring the trend observed in the previous year.
- This sustained focus emphasized the need for ongoing efforts to educate and protect individuals in this demographic from fraudulent activities.
- The report noted that certain regulations need thorough examination, modification, and reinforcement to reduce the potential for fraud and increase the chances of successful recovery.
- NIBSS is the central system responsible for the settlement of inter-bank transactions within Nigeria. The platform connects Deposit Money Banks (DMBs), Mobile Money Operators (MMOs), Switches, and Payment Service Providers (PSPs).
The NIBSS Industry Fraud Desk compiles all reported fraud incidents within a period, analyzes them, and delivers the industry-wide report.
