Nigerian Banks Lose N53.4 Billion to Cybercriminals in Nine Months

Nigerian banks are grappling with an alarming rise in cybercrime, with hackers stealing a staggering N53.4 billion in the first nine months of 2024. This marks a 468% increase from the N9.4 billion lost during the same period in 2023, according to the Financial Institutions Training Centre (FITC).

Hackers began the year with smaller-scale operations, stealing N468.4 million in the first quarter. However, the second quarter saw an unprecedented surge, with losses skyrocketing to N42.8 billion—a jaw-dropping 9037.5% increase. By the third quarter, banks bolstered their defenses, reducing losses to N10.1 billion, a significant drop of 76.4% compared to Q2.

Despite these efforts, fraud attempts remain widespread. FITC revealed that cybercriminals targeted N115.9 billion in Q3 alone, doubling the N56.6 billion targeted in Q2. Banks successfully limited losses to 8.7% of targeted funds in Q3, compared to 75.6% in Q2, showcasing improved fraud prevention measures.

Fraudsters are exploiting familiar vulnerabilities, with Computer/Web fraud, Mobile fraud, and PoS-related scams being the most prevalent methods. Bank card fraud saw a 54.2% rise, from 11,237 cases in Q2 to 17,314 in Q3. Cash-related fraud also spiked by 125%, with cases jumping from 228 to 517. ATMs, online banking platforms, bank branches, and PoS terminals continue to be favorite channels for these criminals.

Dr. Chizor Malize, Managing Director of FITC, highlighted the urgent need for action, warning that the rising fraud cases are “eroding the trust of the financial service sector.” She called for leveraging Artificial Intelligence (AI) to mitigate risks, enhance security, and stabilize the financial system. “The increasing rate of fraud affects businesses and it is eroding the trust of the financial service sector. All the channels we use for transactions today; web, computer, mobile, and PoS, among others have become targets of fraudsters,” she said.

Favour Femi-Oyewole, Access Bank’s Chief Information Security Officer, emphasized the importance of collaboration among banks, calling for broad-based implementation of machine learning to address these challenges. “When it comes to cybersecurity, we are all faced with the same common enemy. So, that means we have to collaborate,” she said.

As cybercriminals become more sophisticated, Nigerian banks must invest in cutting-edge technologies and strengthen security across all digital transaction platforms. Addressing these threats is critical to maintaining public trust and safeguarding the financial system’s future.