Nigeria’s digital payment fraud losses declined sharply to N25.85 billion in 2025, representing a 50.5% reduction from the N52.26 billion recorded in 2024. However, a new industry report warns that cybercriminals are deploying increasingly sophisticated artificial intelligence-powered tactics, making fraud attacks more targeted and significantly more expensive for financial institutions.
The findings were unveiled by compliance technology firm Adhere in its latest report, The Compliance Reckoning: Regulating Financial Services in the Age of AI, released in partnership with TechCabal during the Adhere Compliance Frontline Forum 2026 held in Lagos. While reported financial losses fell substantially, the report noted that fraud-related losses have increased by about 350% since 2020 despite a decline in the number of reported incidents, suggesting that individual attacks are becoming more damaging.
According to Brandspur Banking News Desk, the report estimates that global financial fraud losses reached $442 billion in 2025, with AI-enhanced fraud generating far greater returns for cybercriminals than traditional methods. It also highlighted Nigeria’s vulnerability, noting that the country processes more than 10 billion real-time financial transactions annually but ranks 110th out of 112 countries in fraud protection while facing a cybersecurity workforce shortage of about 90%.
The report further revealed that Nigeria’s regulatory environment has become more demanding, with the Central Bank of Nigeria introducing 17 regulatory actions within 14 months covering cybersecurity, anti-money laundering compliance and data protection. It added that six major compliance deadlines are scheduled between March 2026 and March 2028, increasing pressure on banks, fintech firms and other financial service providers.
Adhere’s Group Managing Director, Gbemisola Osunrinde, said the reduction in reported fraud cases should not be interpreted as a sign that underlying risks have diminished. She stressed that financial institutions need stronger compliance frameworks, proactive fraud detection systems, effective model governance and better collaboration across the industry rather than relying solely on artificial intelligence tools.
Speaking at the forum, Assistant Inspector General of Police, Dr. Uche Henry, described cyber-enabled financial crime as an emerging national security threat capable of weakening confidence in the banking system and public institutions. He said criminals are increasingly exploiting AI, ransomware, deepfakes, SIM swap fraud, insider collaboration and social engineering to target financial systems.
Henry also warned that insider involvement within banks and telecommunications companies remains a significant concern, alleging that some employees facilitate cybercrime by compromising critical systems. He called for stronger collaboration among regulators, financial institutions, telecom operators and law enforcement agencies, alongside faster legal processes for freezing suspicious accounts before stolen funds are moved.
The report aligns with earlier warnings from the Central Bank of Nigeria, which urged banks and other financial institutions to strengthen safeguards against increasingly complex electronic fraud threats. The apex bank has identified social engineering, SIM swap abuse, insider compromise and Authorised Push Payment scams among the evolving risks confronting Nigeria’s rapidly expanding digital payments ecosystem.
