Digital payment fraud in Nigeria fell sharply in 2025, with losses dropping to N25.85 billion from N52.26 billion recorded in 2024, according to the Nigeria Inter-Bank Settlement System (NIBSS).
The latest figures were presented on Wednesday by NIBSS Managing Director and Chief Executive Officer, Premier Oiwoh, during the 2026 Nigeria Electronic Fraud Forum Technical Kickoff Session in Lagos.
Speaking at the event, Oiwoh said the decline represents a 51 per cent reduction in fraud losses and reflects stronger industry collaboration and improved controls across the financial system.
He explained that although fraud remains a concern, the overall trend in the number of reported cases has also improved over the last five years. Cases fell from 123,918 in 2021 to 101,669 in 2022, then to 95,620 in 2023. The figure dropped further to 70,111 in 2024 and declined again to 67,518 in 2025.
Oiwoh noted that the unusually high losses recorded in 2024 were heavily influenced by a single major fraud incident worth N31.1 billion involving one institution. Excluding that case, the jump in 2024 would have been less severe.
By location, Lagos accounted for the largest share of fraud-related activity at 63.43 per cent, underlining its position as the country’s commercial and financial centre. Abuja also recorded a noticeable rise in cases, while Ogun, Rivers and Delta states were among other areas highlighted in the report.
In terms of payment channels, fraud was most common through e-commerce and internet banking platforms. Point of sale terminals, mobile channels and web platforms also featured prominently.
Oiwoh said social engineering remains the most common tactic used by fraudsters. This includes manipulating victims into revealing sensitive information or authorising transactions. He added that insider abuse remains one of the biggest risks facing the industry.
According to him, recent investigations showed that some fraudulent activities involved insiders, making internal monitoring and staff controls a priority for financial institutions.
He also listed SIM swap fraud, account takeovers and phishing attacks as threats that continue to evolve, stressing the need for public awareness as many victims are still deceived through simple scams.
Despite the improvement in losses, NIBSS expressed concern over a drop in fraud reporting in the last quarter of 2025, which declined by about 34 per cent.
Oiwoh warned that failure to report incidents weakens industry efforts to track suspects and prevent repeat offences. He said some individuals linked to fraud were able to move to other institutions because previous cases were not properly reported.
He added that joint action across the banking industry helped prevent about N20 billion in potential losses last year.
The latest data may reassure users of digital payments in Nigeria, but experts say banks, fintech firms and customers will need to remain vigilant as fraud tactics continue to change.
