Nigerian Banks have recorded a N3.3 billion loss to fraudulent activities during the first quarter of 2025, a 603% year-on-year (YoY) increase from N468 million in the first quarter of 2024. This is according to a September 2025 report by The Financial Institutions Training Centre (FITC).
In its methodologies, FITC received 73 fraud and forgery submissions from Nigerian banks between January and March 2025. The highest (25) was in March, which accounted for the highest volume with 25 submissions. Amid this, the total cases reported increased by 7.7% to 12,347 in Q1 2025.
Further breakdown shows that the most frequently reported incidents were tied to computer/web platforms (7,361 cases), mobile transactions (2,875 cases), and POS terminals (1,559 cases). While computer/web-based fraud emerged as the most financially significant category in Q1 2025, it also accounted for N10.6 billion (47.7%)of the total amount involved in reported cases.
With a total case at over 12,000, the total amount involved surged by 645.4% to N22.27 billion. The comparison shows that fraudsters are now targeting fewer but higher-value transactions. This shows that perpetrators are bypassing banks’ systems of flagging volume anomalies and leveraging on their weak detection systems.
On a positive note, the first quarter of 2025 witnessed a reduction in outsider participation in fraud, with reported cases falling by 4.8% YoY to 10,896.
However, staff-related incidents increased with 63 cases recorded in the quarter compared to 47 in Q1 2024. In addition, 28 employees are currently under investigation, and 23 staff members had their appointments terminated.
According to FITC, the report signals a pivot in fraud tactics and a switch from frequent small-value hits to targeted, high-impact operations. “Fraud is no longer a volume issue; it’s a value game. And staying ahead means thinking proactively and innovatively,” it added.
In terms of channels, card-based fraud accounted for 11,972 cases (N1.6 billion loss) while cash-related fraud accounted for 375 cases (N832.4 million). Also, cheque-related cases were 46, with a loss of (N837.7 million).
Also Read: UBA received 3.2m complaints over incomplete transactions in 2024, refunded N2.3b.
What banks can do to curb fraud
The FITC has advised Nigerian banks to strengthen their security protocols and systems to prevent unauthorised access to customer accounts and sensitive information, considering the rising fraud cases.
According to the report, this may involve incorporating measures such as multi-factor authentication, implementing strong encryption techniques, and ensuring regular security updates are in place. They can also integrate fraud models that weigh transaction context, behavioural history, and device fingerprints.
“Financial institutions must adopt a layered, adaptive, and intelligence-first approach, supported by interbank collaboration, staff accountability, and informed customer behaviour,” it said in the report.
To curtail staff-involved cases and reduce internal risk, financial institutions must deploy role-based access management, ensuring limited data/system visibility per role. Another corrective measure is the introduction of monthly digital footprints and outlier audits for staff handling high-risk operations.
