The Nigeria Inter-Financial institution Settlement Methods mentioned the most widespread fraud technique in the Nigerian banking sector and digital cost system is social engineering.

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Managing Director of NIBSS, Premier Oiwoh, disclosed this on Wednesday at an occasion in Lagos, noting that digital cost declined by 51 p.c in Nigeria to N25.85 billion in 2025 from a excessive of N52.26 billion in 2024.

Oiwoh famous that inside the class of fraud, insider abuses or involvement have been the best risk.

In line with him, by channel, fraud stays most prevalent in e-commerce and web banking, adopted by level of sale, cell, and internet platforms inside the Nigerian banking and fintech sector.

He additional mentioned incidents comparable to SIM swap fraud, account compromise, and phishing proceed to evolve in the nation’s banking sector.

“Final 12 months alone, coordinated actions saved about N20 billion that would have been misplaced,” he revealed.

“The most widespread fraud technique stays social engineering. Inside this class, insider abuse is the best risk we face. Insider involvement is excessive, and up to date investigations have confirmed this. Companies comparable to SIM swap fraud, account compromise, and phishing proceed to evolve.

‘Consciousness stays crucial, as many victims are nonetheless simply deceived,” he mentioned.

He added, “In 2023, precise losses stood at about N17.67 billion. In 2024, losses rose to N52.26bn, largely pushed by a single fraud incident of N31.1bn involving one entity. In 2025, losses dropped considerably”.

As an answer, Oiwoh urged that, “we should prioritize inside controls, monitor workers actions intently, and pursue constant joint business motion. Belief amongst establishments is important.”

He famous Lagos State stays the Nigerian state with the most prevalent fraud at 63 p.c, adopted by Abuja, Ogun, Rivers, and Delta States.