Rising Bank Fraud in Nigeria: Insider Threats Increase

Nigerian banks are grappling with a serious rise in fraud incidents, particularly those involving insider threats. According to a report by the Financial Institutions Training Centre (FITC), banks lost N3.3 billion to fraud in the first quarter of 2025, representing a 137% increase from N1.39 billion in the previous quarter.

The Nigerian Inter-Bank Settlement System (NIBSS) reported that 23 employees were terminated for involvement in fraudulent activities during this period. Although this marks a 28.1% decrease from the 32 terminations in the last quarter of 2024, the threat remains significant.

Digital channels are the primary source of risk, with N10.6 billion in fraud attempts recorded in Q1 2025. Notably, Wema Bank lost N847.6 million to fraud, with seven individuals, including three IT employees, arraigned by the Economic and Financial Crimes Commission (EFCC) for allegedly manipulating internal bank processes.

The Nigeria Deposit Insurance Corporation (NDIC) has raised alarms about the increasing cases of fraud involving internal staff, highlighting the need for enhanced regulatory compliance and protective measures.