Banks and other financial institutions recorded a 51 per cent year-on-year decline in fraud losses to N25.85 billion, down from N52.26 billion in 2024.

Managing Director/Chief Executive, Nigerian Interbank Settlement System, NIBSS, Mr. Premier Oiwoh, disclosed this in a keynote presentation at the Nigeria Electronic Fraud Forum, NeFF, Technical Kick-Off Session held yesterday in Lagos.

He also disclosed that the number of fraud cases declined by four per cent, to 67,518 cases in 2025 from 70,111 cases in 2024.

Oiwoh also disclosed that Internet and Mobile platforms remained the most targeted channels by volume, accounting for 27,460 and 22,470 cases respectively during the year.

According to him, Internet Banking emerged as the most financially damaging channel, recording losses of N13.37 billion from just 4,507 cases.

The data further showed that social engineering remained the most significant fraud threat in 2025, accounting for 47 per cent of total fraud volume and N17.84 billion in losses.

Other fraud techniques by volume included card theft, which accounted for 17 per cent, and robbery, with 11 per cent, reflecting the continued overlap between physical and digital crime.

Lagos leads fraud map

Geographically, Lagos State maintained its position as the country’s major fraud hotspot, accounting for over 63 per cent of total fraud volume in 2025.

The Federal Capital Territory, Abuja, and other major urban centres were also identified as emerging operational bases for fraud activities.

Reporting gaps raise concern

Despite the decline in losses, NIBSS boss raised concerns over declining fraud-reporting compliance within the industry.

According to Oiwoh, the number of institutions actively reporting fraud cases dropped from a peak of 45 in the second quarter of 2024 to 34 by the fourth quarter of 2025.

Emphasizing the need for reporting and other measures to checkmate electronic fraud, Oiwoh said: “Reporting is critical. Fraud reporting is not just about recovery; it enables tracking and prevention. We have seen cases where fraudsters left one bank and moved to another simply because there was no reporting. That must stop. There must be zero tolerance for non-reporting, whether the fraud is internal or external.

“In collaboration with the Central Bank, the Nigerian Financial Intelligence Unit (NFIU) and security agencies, NIBSS has built a Person of Interest Portal. Since 2019, about 3,417 individuals involved in fraudulent activities have been captured on the portal, complete with names and photographs. This portal is actively used by security agencies.

“All industry watchlists, the CBN database and the Person of Interest Portal have been integrated. Over 214,000 politically exposed persons (PEPs) are captured—not as criminals, but in line with regulatory requirements. APIs allow banks to validate and verify identities in real time.

“Proper validation of BVN and NIN is non-negotiable. Simply collecting these identifiers without validation is dangerous. With the systems we have built, banks can validate identities through APIs and resolve up to 95 percent of KYC challenges if fully implemented.

“Routine staff profiling, job rotation and mandatory vacation are critical to preventing internal fraud. Lifestyle monitoring should not be ignored. Many fraud cases could have been detected early if red flags had been questioned.

“Banks must cooperate, share intelligence and trust one another. Fraudsters succeed when institutions operate in silos. Collaboration is key.” (Vanguard)

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