Nigerian Banks Lose N52.3bn to Fraud Despite Fewer Attacks in 2024

Digital banking fraud is surging in Nigeria, with losses escalating from N11.6 billion in 2020 to N52.3 billion in 2024 despite fewer reported incidents, as fraudsters execute fewer but more targeted and sophisticated attacks exploiting weak user behaviors such as poor password management and susceptibility to phishing. Experts urge customers to adopt stronger online security measures, including not sharing sensitive banking information, frequently updating passwords, setting transaction limits, and using mobile app features to disable cards temporarily. In Australia, CommBank is enhancing scam protection by integrating its NameCheck tool with the Confirmation of Payee (CoP) system, which cross-verifies payee names against bank records to prevent mistaken and fraudulent payments; this combined technology has already prevented $650 million in scams and errors. Online scams also disproportionately affect younger (ages 13-28) and older (61+) individuals, with tactics like sweetheart scams and social engineering common, highlighting the importance of vigilance, strong unique passwords, caution with unsolicited contacts, and reporting suspicious activity to authorities like the FTC. Additionally, PayPal users face scams such as fraudulent shipping claims and phishing emails mimicking official communications that aim to steal login credentials, emphasizing the need for awareness of payment protections and cautious transaction practices.