Digital cost fraud losses drop 51% to N25.85bn

Nigeria recorded a 51 per cent decline in digital cost fraud losses in 2025, reflecting the impression of improved identification administration, enhanced transaction information requirements, and stronger collaboration throughout the monetary system, in line with the Central Bank of Nigeria.

This assertion was made by the Deputy Governor, Monetary System Stability, CBN, Dr Phillip Ikeazor, in his keynote handle on the 2026 Nigeria Digital Fraud Discussion board Technical Kickoff Session in Lagos on Wednesday.

Knowledge launched by the Nigeria Inter-Financial institution Settlement System on the occasion indicated that losses from digital cost fraud fell to N25.85bn in 2025, down from N52.26bn in 2024, a yr that was considerably distorted by a single N31.1bn fraud incident involving one banking establishment.

On the occasion held below the theme ‘Shrinking Fraud Losses with ISO 20022 & Id Administration’, Ikeazor, who was represented by the Director, Growth Finance Establishment Supervision, CBN, Ibrahim Hassan, stated, ‘The introduction of the Financial institution Verification Quantity and its ongoing integration with the Nationwide Identification Quantity has considerably constrained impersonation and artificial identification fraud.

Enhanced identification verification throughout banking, agent networks, and high-risk digital channels is steadily closing gaps beforehand exploited by criminals. This reinforces the crucial position of identification infrastructure as a foundational management for cost system integrity, with NIMC remaining a key companion in strengthening fraud prevention going ahead.

“Equally transformative is the {industry}’s migration to ISO 20022. Past compliance, ISO 20022 gives richer, structured transaction information that enhances traceability, analytics, and early fraud detection. As banks, cost providers and infrastructure suppliers full implementation throughout RTGS and instantaneous cost programs, it’s anticipated that information high quality and transparency will enhance materially, enabling quicker investigation, higher sample recognition, and simpler cross-border cooperation. This alignment with world requirements positions Nigeria to confront more and more refined fraud schemes with fashionable, data-driven instruments.”

He added that collaboration stays key to all of the beneficial properties recorded. “NeFF has demonstrated that no establishment can battle fraud in isolation. By means of shared intelligence, coordinated response, and trust-based cooperation amongst regulators, monetary establishments, fintechs, telecom operators, and regulation enforcement companies, Nigeria has constructed a collective defence mannequin. New initiatives at the moment are out there which illustrate the facility of pooled information and network-wide surveillance in exposing advanced fraud rings that will in any other case stay hidden.

“Waiting for 2026, the problem is evident; digital fraud losses have risen sharply in recent times, and this trajectory should be decisively reversed. The {industry} should decide to daring, measurable fraud-reduction targets, supported by clear strategic priorities. These embrace full exploitation of ISO 20022 information, common and real-time identification verification, enhanced 24/7 fraud monitoring and response, structured liability-sharing and shopper reimbursement frameworks, deeper engagement with cost service suppliers and telecoms, and rigorous efficiency measurement via clear scorecards. What will get measured should be improved.”

Managing Director/Chief Government Officer of Nigeria Inter-Financial institution Settlement System, Premier Oiwoh, in line with the information he introduced, stated that the quantity misplaced to digital fraud rose by 196 per cent in 2024 on the again of the incident involving one banking entity.

When it comes to fraud depend, the quantity has gone down over the previous 5 years from 123,918 in 2021 to 101,669 in 2022 to 95,620 in 2023. It additional dipped in 2024 to 70,111 and recorded a 4 per cent decline to 67,518 in 2025.

Geographically, Lagos (63.43 per cent) stays the epicentre of fraud-related exercise, reflecting its position as Nigeria’s business hub. “Abuja (Federal Capital Territory) (3.12 per cent) has additionally proven a major rise in exercise, whereas different states proceed to characteristic,” Oiwoh added. Different states highlighted included Ogun, Rivers and Delta States, with fraud quantity distribution starting from 2.51 per cent to 2.44 per cent and a couple of.09 per cent, respectively.

By channel, fraud stays most prevalent in e-commerce and web banking, adopted by level of sale, cell, and internet platforms.

“The most typical fraud method stays social engineering. Inside this class, insider abuse is the best risk we face. Insider involvement is excessive, and up to date investigations have confirmed this. Providers comparable to SIM swap fraud, account compromise, and phishing proceed to evolve. Consciousness stays crucial, as many victims are nonetheless simply deceived.

“We should prioritise inside controls, monitor employees actions intently, and pursue constant joint {industry} motion. Belief amongst establishments is crucial. Final yr alone, coordinated actions saved about N20bn that would have been misplaced,” he revealed.

Nonetheless, fraud reporting declined by about 34 per cent within the final quarter of 2025. “Whereas some establishments reported zero incidents, non-reporting is unacceptable. Reporting allows monitoring and investigation. In a number of circumstances investigated final yr, people concerned in fraud merely moved to different establishments as a result of incidents weren’t reported,” he lamented.

Oiwoh additionally disclosed that in collaboration with the CBN, the Nigerian Monetary Intelligence Unit, and safety companies, the NIBSS has constructed a Individual of Curiosity Portal, a repository of fraudsters, watchlisted people, Politically Uncovered Individuals & the CBN’s Black Ebook of fraudulent ex-staff of banks & /OFIs.

He added that the portal captures people concerned in fraudulent actions since 2019, boasting a listing of over 13,000 people full with names and pictures. The portal is actively utilized by safety companies.

He stated, “Knowledge trails are all over the place. Anybody concerned in wrongdoing leaves footprints. Legislation enforcement companies know excess of many individuals realise. The Central Financial institution’s recertification train is ongoing, and collaboration amongst regulatory and safety companies has intensified. A number of companies have proven robust curiosity in driving reforms, and industry-wide cooperation is enhancing.

“Cybersecurity companies and digital intelligence suppliers have additionally performed an important position, providing AI-driven intelligence that has helped banks strengthen their defences. We’ll proceed to fine-tune these defence mechanisms.”

Earlier in her welcome speech, the Director, Funds System Supervision Division & Chairman, Nigeria Digital Fraud Discussion board, Dr Rakiya Yusuf, additionally famous that the rollout of the BVN and its integration with NIN has considerably diminished impersonation and using false identities for fraud, closing long-standing gaps exploited by criminals throughout each banking and agent networks.

Regardless of the discount, the specter of digital fraud stays. Yusuf stated, “As legacy fraud typologies have been contained, newer dangers, comparable to social engineering, insider compromise, and authorised push cost fraud, have emerged with higher pace and class. By means of NeFF, the {industry} is predicted to reply with coordinated coverage actions, standardised frameworks, stronger operational controls, and commitments to quicker response and restoration timelines. These efforts will mirror a transparent shift in direction of a extra proactive, system-wide fraud administration.

“At present’s engagement takes place at some extent of strategic readiness for the {industry}. The adoption of ISO 20022, the progress now we have made in our nationwide identification infrastructure, and the event of shared analytics and monitoring capabilities now present richer information, improved traceability, and stronger early-warning alerts. The duty earlier than us is to translate these capabilities into measurable outcomes, clear targets, stronger accountability, and sustained reductions in fraud losses, whereas safeguarding confidence in Nigeria’s funds system and supporting the broader monetary system stability.”