Nigerian Banks Lose N3.3 Billion to Fraud in Q1 2025 – FITC

Nigerian banks suffered N3.3 billion in losses due to fraudulent activities during the first quarter of 2025, marking a 603% increase from N468 million in the same period of 2024, according to a report by the Financial Institutions Training Centre (FITC) released in September 2025.

Rising Fraud Cases in Nigerian Banks

Between January and March 2025, FITC recorded 73 fraud and forgery submissions from Nigerian banks. March accounted for the highest volume with 25 submissions, contributing to a total of 12,347 reported cases, a 7.7% increase compared to Q1 2024.

The breakdown by channels shows:

• Computer/web platforms: 7,361 cases (N10.6 billion, 47.7% of total financial impact)
• Mobile transactions: 2,875 cases
• POS terminals: 1,559 cases
• Card-based fraud: 11,972 cases (N1.6 billion loss)
• Cash-related fraud: 375 cases (N832.4 million loss)
• Cheque fraud: 46 cases (N837.7 million loss)

The report highlights a shift from frequent small-value attacks to targeted high-value operations, exploiting weaknesses in banks’ fraud detection systems. Overall, the total amount involved in fraud surged by 645.4% to N22.27 billion.

Staff-Related Fraud Increasing

While outsider participation in fraud declined by 4.8% YoY to 10,896 cases, internal fraud is on the rise. FITC reported:

• 63 staff-related cases in Q1 2025 (up from 47 in Q1 2024)
• 28 employees under investigation
• 23 staff terminated

The centre emphasises that employee accountability and system access management are critical to reducing internal risks.

FITC Recommendations for Banks

FITC advised Nigerian banks to adopt adaptive, intelligence-led fraud prevention strategies, including:

• Multi-factor authentication and strong encryption
• Regular security updates and system audits
• Fraud models based on transaction context, behavioural history, and device fingerprints
• Role-based access management to limit staff visibility
• Monthly digital footprint checks and outlier audits for high-risk staff

The report stresses:

“Fraud is no longer a volume issue; it’s a value game. Staying ahead means thinking proactively and innovatively.”

Conclusion

The surge in Q1 2025 fraud highlights the evolving tactics of perpetrators, targeting high-value transactions and exploiting digital vulnerabilities. FITC urges banks to strengthen security systems, collaborate interbank, and educate staff and customers to mitigate risks and protect assets.