PalmPay Alerts Customers on Fraud Risks and Security Measures

Digital bank PalmPay has warned its customers against clicking on suspicious links and authorizing unauthorized transactions in a recent security advisory. The advisory was issued following Customer Service Week and emphasizes the risks posed by fraudsters impersonating customer service representatives to obtain sensitive information.

PalmPay noted that impersonation scams can occur via phone calls and messaging platforms, where fraudsters may offer fake rewards or request account details under false pretenses. The warning is significant given that financial institutions in Nigeria lost N25.85 billion to fraud in 2025, a decrease from N52.26 billion in 2024.

Social engineering accounted for 47 percent of fraud volume, leading to N17.84 billion in losses in 2025. PalmPay advised customers not to disclose personal information and to verify requests for sensitive information independently.

The company also recommended that merchants check payments through official transaction records before releasing goods or services. Customers are encouraged to report suspicious activity through official support channels.