CBN Raises Alarm Over New Banking Fraud Trends as Digital Payments Surge in Nigeria
- The CBN has warned that emerging fraud threats require faster, more coordinated industry responses as digital transactions grow
- Regulators and industry leaders at the 2026 NeFF said collaboration since 2011 has reduced fraud losses through several measures
- The NIBSS reported a significant drop in electronic payment fraud losses in 2025 despite higher transaction volumes
Legit.ng journalist Victor Enengedi has over a decade's experience covering energy, MSMEs, technology, banking and the economy.
The Central Bank of Nigeria (CBN) has raised concerns over evolving fraud risks within the banking and payments sector, warning that criminals are adopting more sophisticated methods.
Speaking at the 2026 Nigeria Electronic Fraud Forum (NeFF) technical kick-off session held in Lagos on Wednesday, January 21, 2026, Philip Ikeazor, CBN deputy governor for financial system stability, said continuous collaboration through the NeFF platform has significantly improved the safety and resilience of Nigeria’s payments system since its establishment in 2011.
Source: UGC
CBN urges faster response to fraud trends
Ikeazor, who was represented by Ibrahim Hassan, director of the development finance institutions supervision department, noted that industry-wide cooperation has helped curb fraud-related losses even as digital transactions continue to expand rapidly.
He pointed to major achievements such as the nationwide adoption of EMV chip-and-PIN cards, implementation of two-factor authentication, improved transaction monitoring, centralised fraud reporting, and the linkage of bank verification numbers (BVN) with the national identification number (NIN).
According to him, new risks demand quicker, more coordinated and forward-looking solutions.
He said:
“Emerging threats such as social engineering, SIM-swap abuse, insider compromise and Authorised Push Payment (APP) scams require faster, integrated and proactive responses.”
He added that the industry is targeting fraud response times of less than 30 minutes while deploying enterprise-wide fraud management systems powered by real-time data analytics and shared intelligence.
Nigerian banks had earlier warned customers to remain alert to fraudulent activities targeting personal banking information.
Also speaking at the event, Rakiya Yusuf, CBN director of payments system supervision and chairman of NeFF, stressed the need for sustained cooperation among regulators, financial institutions, payment service providers and law enforcement agencies.
She said while progress has been made in identity management and transaction security, emerging threats require standardised frameworks, faster intervention and proactive use of ISO 20022 messaging standards and analytics to maintain fraud reduction gains.
Electronic fraud losses fall amid tighter controls — NIBSS
Also speaking at the event, Premier Oiwoh, managing director and chief executive officer of the Nigeria Inter-Bank Settlement System (NIBSS), disclosed that electronic payment fraud losses dropped significantly in 2025 despite a surge in transaction volumes.
Oiwoh attributed the improvement to coordinated efforts of the CBN, the Nigerian Financial Intelligence Unit (NFIU), security agencies and industry operators, alongside stronger monitoring mechanisms across the payments ecosystem.
He noted, however, that internet banking and e-commerce platforms remain the most vulnerable channels, with social engineering schemes and insider-assisted fraud becoming increasingly prevalent.
According to him, sustaining the gains will require tougher internal controls, stricter regulatory compliance and deeper collaboration across the industry.
Source: Getty Images
He warned that failure to report fraud incidents, weak identity verification processes and misuse of transaction limits continue to pose serious risks to the system.
The NIBSS chief also revealed that the organisation is working closely with the CBN and other stakeholders to deploy advanced artificial intelligence-based monitoring tools and develop a new national payment infrastructure aimed at strengthening fraud prevention while expanding financial inclusion.
CBN directs banks to invest in cybersecurity
Meanwhile, Legit.ng earlier reported that the CBN urged deposit money banks to step up spending on cybersecurity to better protect their digital platforms.
CBN Governor Olayemi Cardoso made the call while speaking at a panel session of the Nigeria Economic Summit (NES) held in Abuja.
He stressed the growing importance of stronger safeguards against cyber risks in an increasingly digital banking environment.
Source: Legit.ng
