According to the latest “Fraud and Forgeries in Nigerian Banks” report by FITC, the first quarter (Q1) of 2025 recorded a sharp drop in the number of reported fraud cases but a dramatic rise in the financial value of these incidents.
FITC data shows that Nigerian banks reported 12,347 fraud cases in Q1 2025, marking a 33.8% decrease from the 18,672 cases recorded in Q4 2024. A closer breakdown reveals that most incidents occurred through Computer/Web channels (7,361 cases), followed by Mobile transactions (2,875 cases) and POS terminals (1,559 cases), a pattern consistent with trends in the latter quarters of 2024.
Despite the decline in case numbers, the financial impact surged significantly. The total amount involved in fraud schemes rose by 242.74%, increasing from approximately N6.5 billion in Q4 2024 to N22.27 billion in Q1 2025. Correspondingly, total losses climbed by 137.2%, rising from N1.39 billion to N3.3 billion.
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The report also highlights a reduction in fraud participation by outsiders, which fell by 33.04%, from 16,408 cases in Q4 2024 to 10,896 in Q1 2025. Internal (staff-related) cases dropped as well, declining from 91 cases to 63, representing a 30.8% decrease. Currently, 28 employees are under investigation, while 23 staff members had their employment terminated, down 28.1% from the 32 terminations in the previous quarter.
In terms of financial weight, Computer/Web fraud was the most significant, accounting for N10.6 billion, or 47.7% of total fraud amounts recorded in Q1 2025. This was followed by miscellaneous and other fraud types including eNaira scams, autopay fraud, cash suppression, and forged deposit slips collectively valued at N5.97 billion (26.8%). Mobile app–related fraud ranked third at N2.3 billion (10.3%). Together, these three categories represented 84.8% of all fraud amounts for the quarter.
When examining losses, Mobile app fraud contributed the highest losses, accounting for N1.4 billion, or roughly 43% of total losses. Losses from forged cheques stood at N837.7 million (25.4%), while fraudulent withdrawals amounted to N584.85 million (17.8%).
Channels and Methods Used in Fraud
Fraud in Q1 2025 occurred across multiple outlets, including ATMs, online platforms, bank branches, and POS terminals.
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Card-based fraud fell by 29.4%, from 16,955 cases to 11,972.
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Cash-related incidents declined by 30% (536 to 375 cases).
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Cheque-related fraud, however, increased by 43.8%, rising from 32 to 46 cases.
Despite the decline in case volumes, the financial amounts involved rose sharply across nearly all channels:
- Computer/Web fraud amounts surged by 362.3% (N2.3 billion to N10.6 billion).
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Mobile fraud increased by 124.7% (N1 billion to N2.3 billion).
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Bank branch fraud amounts rose by 311.5% (N1.9 billion to nearly N8 billion).
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POS fraud amounts climbed by 85.8%. Only ATM-related fraud saw a decline, dropping by 59.8% from N61.3 million to N24.7 million.
Similarly, fraud losses across channels rose sharply for Computer/Web, Bank Branch, and Mobile platforms:
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Bank branch losses: up 112.3% to N1.7 billion.
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Computer/Web losses: up 152.3% to N203.2 million.
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Mobile losses: up 309.8% to N1.4 billion.
Conversely, ATM losses fell by 95%, and POS losses dropped by 93%.
Fraud via Instruments: Cheques, Cash & Cards
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Forged cheque fraud: up 196.8%, reaching N1.1 billion.
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Card fraud amounts: up 306.2%, from N3.5 billion to N14.3 billion.
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Cash fraud amounts: up 301.2%, rising to N6.8 billion.
Losses followed a similar upward trajectory:
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Cash fraud losses rose 16.2%.
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Card fraud losses increased 211.9%.
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Cheque fraud losses saw the largest jump, rising 1,036% to N837 million.
Conclusion
Overall, Q1 2025 recorded fewer fraud attempts but significantly higher financial damage. Total reported cases fell by 33.8%, yet the amount involved climbed to N22.27 billion, and losses increased to N3.3 billion. The findings highlight a shift toward fewer but more sophisticated and high-value fraud operations across Nigeria’s financial sector.