• Phone, SIM breaches fingered
By Chinenye Anuforo and Chinwendu Obienyi
What was once a street-level crime of petty phone theft has evolved into a high-stakes assault on the financial sector, with victims discovering their savings wiped out or debts piled up within hours of losing their telecommunication devices (mainly phones and tablets).
According to the National Bureau of Statistics (NBS), between May 2023 and April 2024, Nigeria recorded 25.35 million stolen phones, making it the country’s most common crime. Less than 12 per cent were ever recovered.
Also, the National Information Technology Development Agency (NITDA) recently disclosed that the country loses about N250 billion yearly to cyber-crime.
In its assessment, sim-swap fraud, weak password, among others were the main causes of the rising incidents of social media account hacking across the federation.
To be clear, SIM cards have become a powerful gateway for fraudsters to raid bank accounts and secure illegal loans, thus exposing deep cracks in Nigeria’s digital security system.
The personal toll of the crisis is captured in stories like that of Nimot Shekoni, who discovered that a loan had been taken out in her name using her stolen phone number.
She lamented: “It was really confusing at the beginning because I have never taken a loan from any loan app.
“Why would someone use my phone number to take a loan, and how could the company fail to verify it with an OTP or other measures?”
Another victim, a Lagos-based journalist, Chinelo Obogo, followed all the right steps after her phone was stolen, immediately instructing her bank to block her account and even receiving email confirmations. Yet, weeks later, debit alerts kept draining her savings.
“Despite following due process, my money kept disappearing. I did everything I was supposed to do, yet the system failed me,” she recalled.
Obogo said she spent hours at the bank seeking answers but was met with contradictory explanations.
At one point, she was told the account was blocked; at another, that it was still active. Some of the unauthorised withdrawals were even labeled as loan repayments, despite her never taking any loan.
Similarly, another journalist, Vivian Onyebukwa, discovered her phone missing only after reaching home from work to find her bag slashed open.
She rushed to block her bank account but was delayed because her National Identification Number (NIN) was not properly registered. According to her, she had to re-register at a cost of N8,000 before securing her line.
Within just 20 minutes of the theft, the criminals emptied her account. The next day, her bank demanded repayment of a N60,000 Pay Day Loan she never applied for.
For three months, her salary was partially deducted to cover the fraudulent loan. The thieves also borrowed airtime and money using her SIM card, charges she was forced to repay.
“It was not just financial loss, it was emotionally draining. I had to buy a new phone and still repay debts I never incurred”, Onyebukwa lamented.
Owing to these harrowing experiences, regulators insist they are tightening controls.
A bank source said: “A bank account fraud investigation process is necessary to detect, analyse and stop fraud. We track suspicious transactions, analyse fraud patterns and work with law enforcement to catch criminals. Banks use AI and data analytics to improve fraud detection and prevent financial crimes before they happen”.
Nonetheless, President Bola Tinubu, while speaking at the National Day of Identity in September, flaunted the NIN-SIM linkage policy as a tool that has reduced fraud and enhanced national security. But while the policy has helped sanitise subscriber records, experts say its impact on stolen-phone fraud remains limited.
The Nigerian Communications Commission (NCC) has introduced stricter monitoring of mobile lines and is working on regulations to criminalise the use of SIM cards for fraud.
The Executive Vice Chairman of the NCC, Dr Aminu Maida, said, “Currently, there is no consequence for using phone lines for fraud. We are looking into regulations that will criminalize such acts”.
Industry stakeholders argue that more robust measures are needed. The Association of Mobile Communication Device Technicians of Nigeria (AMCODET) has called for mandatory registration of mobile phones at the point of purchase, which it says will deter theft.
Its President, Kehinde Apara, said, “Registration of mobile phones will reduce theft to the barest minimum, as it will be difficult for thieves to sell registered stolen phones”.
The banking sector has become a frontline casualty. The Nigeria Inter-Bank Settlement System (NIBSS) reported that attempted fraud across financial institutions reached N17.67 billion in 2023, with mobile and digital channels accounting for most attacks.
Analysts warn that stolen phones with active SIM cards are an easy entry point, especially for customers who fail to activate two-factor authentication or use weak PINs.
Tech policy advisor and founder of Jidaw.com, Jide Awe, said the recurring breaches, even after victims promptly report thefts, raise serious concerns.
“The problem is not just in the sophistication of fraud techniques but in the inadequate response from banks. These failures reflect deep problems with operational controls, customer protection processes, regulatory oversight, and, most crucially, ethical standards,” Awe said.
He criticised banks for lacking real-time fraud detection systems and effective incident response mechanisms.
“Technology alone will not guarantee security if the people behind it are poorly trained or unmotivated. Customers often face bureaucracy, slow responses, or outright disregard. “No one should feel abandoned after reporting fraud. Banks must modernise their cybersecurity infrastructure, train staff and ensure transparent timelines for refunds and compensation,” Awe stressed.
Under mounting pressure, the Central Bank of Nigeria (CBN) has vowed to investigate the surge in fraud complaints and enforce stricter sanctions on negligent banks.
A source at the apex bank, told Daily Sun, that the CBN will not take these breaches lightly.
“There will be consequences for institutions that ignore red flags or fail to activate account-protection protocols after receiving customer complaints. Consumer trust is the lifeblood of the financial system”, he said.
The source also revealed that several commercial banks are under review for repeated security failures and delays in fraud resolution. The CBN is considering mandating automated account-blocking systems that respond instantly to high-risk alerts.
The scale of exposure is staggering. As of early 2025, Nigeria had over 172 million active mobile subscriptions, with a teledensity of nearly 80 per cent. For most citizens, mobile phones are the primary gateway to banking and digital services, making security lapses potentially catastrophic.
Experts recommend a multi-pronged response, including: Stronger SIM encryption and mandatory multi-factor authentication for all mobile transactions, harsher penalties for telecom-related fraud and consumer education, encouraging users to adopt complex passwords, avoid storing banking details on devices, and report stolen phones immediately to both telcos and banks.
But for victims like Shekoni, Obogo, and Onyebukwa, the crisis is more than a policy challenge, it is a personal nightmare.
It was not just the money,” Shekoni said. “It was the feeling that my own phone, something I use every day, could be turned against me.”
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