Police arrest suspect over alleged N3 billion cyber fraud using POS terminals

The Police Special Fraud Unit (PSFU) has arrested a suspected member of a cybercrime syndicate accused of orchestrating fraudulent transactions exceeding N3 billion by allegedly using Point of Sale (POS) terminals and other technological tools to compromise a financial institution’s systems.

The development was disclosed by the spokesperson for the PSFU, DSP Ovie Ewhubare, in a statement issued on Friday in Lagos.

He said the arrest followed an ongoing investigation into the activities of the syndicate, while noting that other suspected members remain at large.

What they are saying

Ewhubare said the suspect was apprehended after detectives carried out an extensive investigation into what he described as a sophisticated cyber intrusion targeting a financial institution, leading investigators to one of the alleged members of the network.

According to the police, members of the syndicate allegedly exploited Point of Sale (POS) terminals alongside other digital tools to illegally infiltrate the database of a financial institution.

• “The members of the syndicate allegedly used Point of Sale (POS) terminals and other technological tools to gain unauthorised access to the financial institution’s database,” Ewhubare said.
• He added that the alleged breach enabled the suspects to execute fraudulent transactions running into billions of naira. “The breach enabled the suspects to initiate fraudulent transactions worth more than N3 billion,” he said.

More insights

Preliminary investigations indicate that the alleged proceeds of the fraud were rapidly transferred through multiple bank accounts in what investigators believe was an attempt to disguise the origin and movement of the funds before they could be traced.

The police said detectives relied on advanced digital forensic tools and financial intelligence techniques to track the flow of funds, identify members of the suspected syndicate and gather evidence for prosecution.

Ewhubare also disclosed that the Commissioner of Police in charge of the PSFU, Eloho Okpoiakpo, praised the investigative team for uncovering the alleged scheme and directed officers to intensify efforts to arrest other suspects who remain on the run, assuring that everyone connected to the case would be brought before the law.

What you should know

The latest arrest comes amid growing concerns over increasingly sophisticated financial fraud schemes involving payment cards, POS devices and digital banking platforms targeting unsuspecting Nigerians.

• In April, Nairametrics reported that operatives of the Economic and Financial Crimes Commission (EFCC) arrested Bekono Marc Eric, a Cameroonian national, over his alleged role in a N1.5 billion bank fraud in Lagos.
• Investigators alleged that the syndicate opened bank accounts in Nigeria, obtained customers’ ATM cards and PINs, and then used the cards from neighbouring countries to carry out unauthorised withdrawals from accounts with large balances.
• The rise in digital fraud also prompted the Central Bank of Nigeria (CBN) to issue a public warning in April, cautioning Nigerians against fraudulent messages, phishing links and other schemes designed to steal banking credentials and gain unauthorised access to customers’ accounts.

The scale of the challenge is reflected in industry data. According to the Nigeria Inter-Bank Settlement System (NIBSS), Nigerian banks lost approximately N52.26 billion to fraud in 2024, highlighting the growing sophistication of cybercriminals and the increasing pressure on financial institutions and law enforcement agencies to strengthen cybersecurity and fraud prevention measures.