ILIYASU GASHINBAKI writes that the country is losing billions to financial fraud
As Nigeria’s digital economy grows into a continental force, the country stands at a crossroads, caught between rapid innovation and a rising wave of cybercrime that threatens its digital future. Home to fintech unicorns like Flutterwave, Interswitch, OPay, and Moniepoint, Nigeria’s financial technology sector is reshaping how millions access banking, credit, and payments. Yet, the same cloud-powered systems that foster financial inclusion have become vulnerable to digital fraud, identity theft, and insider manipulation. According to consolidated estimates from the Central Bank of Nigeria CBN), the Nigeria InterBank Settlement System (NIBSS) and industry reports, Nigeria may have lost over ₦320 billion to financial fraud between January 2023 and April 2025. More than 92 percent of these cases were linked to digital transactions, mobile money platforms, or fintech applications.
Unfortunately, this staggering figure reflects a deeper crisis: the erosion of trust in Nigeria’s digital infrastructure. The landscape of cybercrime in Nigeria is no longer shaped by lone hackers but by well-coordinated criminal networks that exploit weaknesses in authentication systems, mobile apps, and regulatory loopholes. According to the CBN, reported financial fraud cases increased by 26 percent in 2024 alone, underscoring the escalating threat facing banks, fintechs, and consumers while the NIBSS recorded over 740,000 attempted digital fraud incidents across financial platforms in 2023, with confirmed losses exceeding $27 million. According to NIBSS 2024 Fraud Report, the most prevalent attack methods are: • Phishing, 31%; SIM Swap Fraud, 25%; Identity Theft and Credential Compromise, 21%. The cost of these attacks goes beyond financial losses.
Reputational damage, investor hesitation and regulatory penalties. Undeniably, customer attrition are now commonplace challenges for digital service providers. The statistics are mind boggling. In 2023/2024, Flutterwave suffered a major breach involving unauthorized transactions exceeding $6.5 million. The incident triggered civil suits and regulatory scrutiny in both Nigeria and Kenya. In 2024, PiggyVest experienced a wallet attack in which over $2.1 million was lost by users of the digital savings platform due to credential stuffing attacks that compromised user wallets. In 2023, Interswitch reportedly incurred ₦30 billion in losses through fraudulent chargebacks, revealing weak points in transaction dispute resolution mechanisms. In 2023, First Bank of Nigeria experienced insider fraud whereby an employee-led ring siphoned ₦40 billion by creating proxy accounts and routing funds through shadow beneficiaries. Indeed, in 2024/ 2025, more than 5,000 Opay accounts were compromised through phishing and SIM swap fraud. Refunds were issued, however, public confidence took a hit.
Nigeria’s digital economy valued at over $10 billion serves as a core pillar of national development. However, 40 percent of fintech users now express distrust in mobile platforms; 26 percent of Small Medium sized Enterprises (SMEs) reportedly lost revenue due to fraud-related service disruptions; International investors are becoming more cautious, leading to slower funding for Nigerian startups. I believe that this is not just a cybersecurity concern, it is a matter of national credibility, economic resilience, and digital sovereignty. The hard truth is that conventional security tools are no longer enough. This is why the Chartered Institute of Forensics and Certified Fraud Investigators of Nigeria (CIFCFIN) is championing digital forensics to become central to cybersecurity policy.
The benefits include but not limited to: detection of unusual patterns in real time using Artificial Intelligence (AI), Tracing digital footprints across fraud networks, Preventing future attacks through predictive analytics, and prosecution based on credible and admissible digital evidence. Interestingly, CIFCFIN is working alongside stakeholders to integrate forensic protocols into both public policy and fintech operations. These include: Establishing partnerships with fintech companies to embed forensic security tools across platforms, collaborating with regulators, including the CBN, Securities and Exchange Commission (SEC), the National Insurance Commission (NAICOM), and the National Information Technology Development Agency (NITDA) to standardize forensic compliance models.
Advocating for legislation that mandates forensic practices as part of financial regulation and licensing. I believe that the cases of fraud in cyberspace can be curbed by mandating forensic audits for fintech companies handling over ₦10 billion in annual transactions or serving over one million users, launching a national fraud reporting and analytics portal linked to law enforcement databases, Creating regional cybercrime task forces under Economic Community of West African States (ECOWAS) to tackle cross-border digital fraud. Incorporating digital forensics into university curricula to grow domestic talent. Enforcing biometric and multi-factor authentication across platforms that store sensitive customer data. Each case of fraud erodes the digital credibility Nigeria has worked to build.
The stakes are too high to ignore. This is not merely a question of software or servers, but of trust, investment, and national competitiveness. Forensic science offers a proactive strategy. It can detect and dismantle fraud before damage is done. The technology is available. The expertise is growing. What remains is a national coordination and the political will to act. The cloud is the future of finance. Without forensic readiness, Nigeria risks turning its most promising sector into its most vulnerable.
Dr. Gashinbaki is the Founder/Chairman, Governing Council, Chartered Institute of Forensics and Certified Fraud Investigators of Nigeria. He can be reached on president@cifcfin.org
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