The Nigeria Inter-Bank Settlement Systems (NIBSS) has identified insider fraud and social engineering as the most significant threats facing Nigeria’s banking and digital payment ecosystem.
Managing Director of NIBSS, Premier Oiwoh, disclosed this on Wednesday at an event in Lagos, noting that social engineering remains the most common fraud technique in the sector, often aided by insider involvement.
Oiwoh revealed that total digital payment fraud declined by 51 percent to N25.85 billion in 2025, down from N52.26 billion recorded in 2024. He explained that fraud is most prevalent across e-commerce and internet banking channels, followed by point-of-sale transactions, mobile platforms, and web-based services within the banking and fintech space.
According to him, fraud schemes such as SIM swap, account compromise, and phishing continue to evolve, posing persistent risks to financial institutions and customers.
“Last year alone, coordinated industry actions helped save about N20 billion that could have been lost,” Oiwoh said. “The most common fraud technique remains social engineering, and insider abuse is the greatest threat we face. Insider involvement is high, and recent investigations have confirmed this. Awareness is still critical, as many victims are easily deceived.”
He added that actual fraud losses stood at about N17.67 billion in 2023 before rising sharply to N52.26 billion in 2024, largely due to a single N31.1 billion fraud incident involving one entity. Losses, however, dropped significantly in 2025.
To curb the menace, Oiwoh stressed the need for stronger internal controls, closer monitoring of staff activities, and sustained collaboration across the industry. “Trust among institutions is essential,” he said.
He also disclosed that Lagos State accounts for 63 percent of reported fraud cases nationwide, followed by the Federal Capital Territory, Ogun, Rivers, and Delta States.
