Why Nigeria’s best defence against fraud is a classroom

Throughout my career working in financial crime compliance across banks, fintechs, and regulated financial institutions, I have often asked myself a simple question: what if we spent as much time educating young people about financial crime as we spend investigating it?

Every day, financial institutions invest heavily in fraud prevention systems, transaction monitoring tools, cybersecurity controls, sanctions screening, investigations, and regulatory compliance.

Yet despite these investments, financial crime continues to evolve.

According to the Nigeria Inter-Bank Settlement System (NIBSS), Nigerian financial institutions lost N52.26 billion to fraud in 2024.

Although industry interventions helped reduce losses to N25.85 billion in 2025, more than 67,500 fraud cases were still recorded across the financial sector. These figures should concern all of us, not only bankers, regulators, and compliance professionals.

When many people hear about financial crime, they immediately think about banks losing money. The reality is much bigger than that.

Behind every successful fraud is a victim. It could be a retiree who loses life savings to an investment scam. It could be a small business owner whose account is compromised. It could be a student who unknowingly allows criminals to use his account for money laundering.

It could even be a young graduate whose future career is destroyed because of a decision made in pursuit of quick money.

One thing I have observed over the years is that many young people understand the attraction of fast money, but very few understand the long term consequences of financial crime.

Across social media, we are constantly exposed to displays of wealth, luxury cars, designer clothing, expensive holidays, and lifestyles that appear attractive.

What is rarely shown are the investigations, arrests, prosecutions, frozen accounts, travel restrictions, damaged reputations, and broken families that often sit behind financial crime.

This challenge is not unique to Nigeria.

In the United Kingdom, the National Crime Agency continues to warn about the growing number of young people being recruited as money mules.

Many are approached through social media and promised easy income for allowing their bank accounts to be used to move funds.

Some do not even realise they are participating in money laundering until their accounts are closed or law enforcement becomes involved.

Across Europe, Europol has repeatedly highlighted similar concerns. Criminal networks deliberately target young people because they are often ambitious, digitally active, and sometimes unaware of the legal consequences of their actions.

The pattern is remarkably similar everywhere.

Criminals recruit where there is opportunity. They exploit financial pressure, curiosity, ambition, and sometimes ignorance.

This is why I strongly believe that financial crime prevention should not begin in the courtroom, the police station, or the investigation unit.

It should begin in the classroom.

We teach young people mathematics, science, history, and civic education. Those subjects are important.

However, in today’s digital world, I believe there is also a strong case for educating young people about fraud, cybercrime, identity theft, money laundering, online scams, and the consequences associated with these offences.

If a teenager understands how money mule schemes operate, they are less likely to become involved.

If a university student understands how investment scams work, they are less likely to become a victim.

If a young graduate understands how background screening affects future employment opportunities, they are more likely to protect their reputation.

Education gives people the ability to make informed decisions before they face temptation.

From my experience, the most effective financial crime control is not always technology. Sometimes it is awareness.

A well informed young person is less likely to become a fraudster and less likely to become a victim.

As Nigeria continues to expand its digital economy, improve financial inclusion, and promote entrepreneurship, we must also invest in building a culture of integrity among the next generation.

The billions lost to fraud each year tell us that enforcement remains necessary. However, the lasting solution lies in prevention.

If we truly want to reduce financial crime in the years ahead, we must stop waiting until young people encounter criminal opportunities before we educate them about the risks.

The conversation should start earlier.

It should start at home. It should continue in schools. It should be reinforced in our religious institutions, communities, and youth programmes.

Because by the time financial crime reaches the banking system, the damage has often already begun.

The best time to prevent financial crime is before a young person is ever asked to participate in it.