From Adanna Nnamani, Abuja
While Nigerians carried out record-breaking transactions worth N223.27 trillion via Point-of-Sale (POS) terminals in 2024, fraudsters also had a field day, exploiting the boom to siphon billions through digital deception.
According to the Central Bank of Nigeria’s (CBN) latest data, POS transaction value more than doubled from N110.35 trillion in 2023 to over N223 trillion last year, driven by a nationwide shift away from Automated Teller Machines (ATMs) and an expanding agency banking network.
But as usage soared, so did fraud. New figures from the Fraud and Forgeries Report for Q1 2024 by the Financial Institutions Training Centre (FITC) show that POS fraud cases jumped by 31.12 per cent, rising from 2,683 incidents in Q4 2023 to 3,518 cases in Q1 2024 alone.
These POS-related frauds accounted for 30.67 per cent of the 11,472 total fraud cases reported during the period. Experts say this makes POS transactions the biggest contributor to fraud in Nigeria’s financial system.
Also, fraud committed through computers, mobile devices, and agent banking platforms led the charts in both Q1 and Q2 2024, reflecting the growing vulnerabilities in Nigeria’s digital payment system.
The upsurge in fraud has forced the CBN to impose tighter controls. In April, the apex bank introduced a daily cash-out limit of N100,000 per customer at POS terminals and capped agents’ daily withdrawals at N1.2 million.
The new rules were part of sweeping reforms to advance the cashless policy, curb financial crimes, and restore consumer confidence in digital platforms.
To enforce this, the CBN ordered that all Point-of-Sale terminals must be connected to the Payments Terminal Service Aggregator (PTSA). It also mandated that banks and agent operators submit daily transaction reports, including float account balances and withdrawal limits, to the Nigerian Inter-Bank Settlement System (NIBSS).
Additionally, the CBN instructed that all agent banking activities be carried out exclusively through designated float accounts, while banks are required to closely monitor all accounts linked to agents’ Bank Verification Numbers (BVNs) for any suspicious or unauthorised activity.
The apex bank further warned that principal banks will be held accountable for any infractions by their agents. Sanctions for violations include fines, restrictions, and administrative penalties.
Despite these safeguards, customers continue to report unauthorised withdrawals, fake POS alerts, cloned terminals, and delays in reversals, especially in rural and underserved areas where redress channels are limited.
A financial analyst, Tobi Adekanmbi, told The Sun that while digital expansion is commendable, enforcement lags behind adoption.
“The fintech space grew faster than regulation. Now fraudsters are exploiting that gap. We need serious fintech audits and consumer education,” he said.
Meanwhile, while POS use is rising sharply, ATM transactions have remained flat. In 2024, ATM withdrawals totaled N29.12 trillion, compared to N28.21 trillion in 2023, a marginal rise.
By contrast, monthly POS transactions in December alone hit N31.84 trillion, far surpassing the ATM’s annual value. This marks the first time in Nigeria’s financial history that POS use in one month exceeded total annual ATM withdrawals.
Analysts say this signals a historic transition, but warn that unless security architecture catches up with innovation, more Nigerians may fall prey to digital fraud in 2025.
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