Nigerians Cry Out as Bank Fraud Epidemic Drains Accounts Despite Security Investments
Story written by Okafor Joseph October 6,2025
For Akin Adeola, a 400-level student of Lagos State University, a robbery attack earlier this year was only the beginning of her nightmare. After losing her phone, she thought the worst was over—until she began receiving debit alerts from her bank. Within hours, her entire savings vanished.
“I did everything I was supposed to do. I reported immediately, and the banks said they had blocked my accounts. Later, I found out that only one bank did. The other didn’t, and all my money was gone,” she said tearfully.
Akin’s ordeal mirrors the growing wave of bank fraud in Nigeria, where customers lose millions to hackers and cybercriminals despite prompt reports to their banks. Across the country, victims flood social media with videos of themselves crying in banking halls, demanding refunds or justice that rarely comes.
Customers Share Harrowing Experiences of Delayed Responses
An X user, @TheSamira_Sani, recounted how he tried to block his mother’s bank account after her phone was stolen. A bank agent assured him that the request was processed. But when he visited the bank physically, he discovered nothing had been done—leaving the account exposed to fraudsters.
Similarly, another user, @_kingjonah, said he lost ₦500,000 after lending his phone to a friend. “Two days later, I tried to make a transfer and noticed ₦500,000 missing. No debit alert, no email notification,” he said.
In yet another case shared by @breketeConnect, a woman lost ₦2 million to unauthorized transactions. Shockingly, her bank only sent transaction alerts a month later, eliminating any chance of recovery.
These stories highlight a growing trust deficit between Nigerian banks and their customers, as delayed responses and poor fraud detection systems allow criminals to act faster than the institutions meant to protect funds.
Cybercrime Surge Across Nigeria’s Banking Sector
According to a Surfshark Nigeria report, cyber fraud surged by 56 percent in the first half of 2025, affecting over 152,000 accounts nationwide. The study also revealed that more than half of those affected now face risks of both bank theft and identity fraud.
Similarly, the Nigeria Inter-Bank Settlement System (NIBSS) disclosed that over ₦400 million was stolen in 2024 through accounts opened with stolen identities. Experts believe these figures only scratch the surface, as many victims abandon complaints after prolonged resolution delays.
Banks’ IT Spending Soars — But So Do Fraud Cases
Despite the rise in fraud, Nigerian banks have doubled their IT budgets, investing heavily in cybersecurity and digital platforms. In 2024, the sector spent ₦518.5 billion on technology upgrades.
By mid-2025, five leading banks had already poured ₦126.8 billion into IT systems:
- Zenith Bank increased spending to ₦49.88 billion, up from ₦23.09 billion.
- GTCO spent ₦37.76 billion.
- Stanbic IBTC raised its budget to ₦23.74 billion.
- UBA allocated ₦6.72 billion.
- Wema Bank, through its ALAT digital platform, made the biggest leap—from ₦1.13 billion to ₦8.65 billion.
Yet, despite these record investments, the number of victims continues to rise—raising questions about the effectiveness of these cybersecurity measures.
Experts Call for Transparency and Swift Customer Protection
Technology policy advisor Jide Awe, founder of Jidaw.com, said the persistence of bank fraud despite large IT spending reflects operational failures and weak ethics within the system.
“The issue isn’t only the sophistication of fraudsters, but the slow and inadequate response from the banks. Real-time fraud detection tools exist but are underutilized. Customers lose faith when complaints drag for months without refunds,” Awe explained.
He emphasized that trust can only be rebuilt if banks improve their fraud response systems, train staff adequately, and communicate transparently about refund timelines and accountability.
