E-Financial
Bank Customers Lose N42.7Bn to Fraudsters in 3 Months- Report
Bank customers lost a whopping N42.755 billion to fraudulent activities perpetrated through social engineering in just three months.
Social engineering is when fraudsters trick individuals to reveal personal data that could be used to access their bank accounts.
In the heat of the COVID-19 pandemic and the months following, many Nigerians were and are still being defrauded mainly thorough social engineering.
With increasing penetration of fraudsters into the banks’ database, experts have warned Nigerians to avoid releasing sensitive information to strangers.
This is as some customers believe that staff of banks also collude with these fraudsters to release sensitive information with which they use in perpetrating their heinous crimes.
Leadership newspaper citing data from the Nigeria Inter Bank Settlement System (NIBSS) showed that social engineering is still a preferred and successful technique employed by fraudsters, as a total of 11,589 cases were reportedly carried out using various social engineering techniques, resulting in N42.755 billion fraud loss value for Q3,2020. This represented 68 per cent of the entire fraud volume and value for the third quarter of 2020.
Although, Leadership investigation revealed a rapid increase in the spate of calls from fraudsters claiming to be bank staff with the motive to get sensitive information that could give them access to victims’ accounts, there are strong indications that some bank workers partake in this racket by selling sensitive information of customers to these fraudsters for a fee.
Experts however believe that while few of the fraudsters have insider links in the banks, a majority of them rely mainly on information gotten from people’s mobile phones, especially, stolen ones, or from websites in which bank customers may have done one transaction or the other, hence, revealing certain sensitive information that could be useful for fraudsters to pounce.
Leadership learnt that the fraudsters trick Nigerians by pretending to be staff of a bank, and ask for some details that will give them access to customers’ bank account; once they succeed in getting the information, they withdraw almost all the funds in there.
So, when fraudsters call bank customers and read their bank verification number (BVN), their full names and date of birth, many believe that they are being called from their banks and give out other sensitive information such as the two-factor authentication code that allows a successful diversion of the customer’s fund.
Many Nigerians have been defrauded this way and there has not been anyone who takes responsibility for the funds that have been stolen in this regard.
While banks, in this circumstance, always insist that the customer would have compromised his or her bank details for the fraud to have been successfully carried out, customers accuse the banks of leaking out information or collaborating with the fraudsters.
One opportunity that fraudsters leveraged on last year was through the several government social intervention funds aimed at relieving the impact of the Covid-19 pandemic on Nigerians, to rob them of their funds.
They had sent messages via WhatsApp and text telling people to fill a form to be a recipient of some of the funds being disbursed.
Similarly, the federal government N-Power website was cloned as individuals filled out sensitive information on phoney websites. An individual lost more than N1 million to fraudsters within hours of filling out his details such as BVN, full name, date of birth and home address, alongside other details on the cloned website.
According to data from NIBSS, attempted fraud value rose by 44 per cent in the third quarter of 2020 compared to Q3 2019, while actual loss value for Q3 2020 rose by 500 percent compared to Q3 2019.
In Q3, 2019, there was 10,692 attempted fraud cases with a value of N1.09 billion while actual loss was N552 million. The figure, however, rose to 16,988 attempted fraud cases with a value of N3.5 billion of which actual loss to fraudsters was N3.35 billion.
While noting that there have been a few cases of bad eggs within the system who collaborate with the fraudsters, Osita Nwanisobi, director of corporate communications of the Central Bank of Nigeria (CBN), pointed out that most bank customers in one way or the other compromise their data.
According to him, most individuals store their bank details such as account number and bank name as well as BVN on their phone which can be easily accessible by anyone who has access to the phone.
“Most of the time we give them the information. I have been hearing the stories and the reality is that we give the information. When some of these criminals are caught and they begin to tell how they do these things, we know that we give them the information.
“They tell you that all they need is your phone or your simcard and once they are able to get your sim card, it is possible to get some of these things. I am not discountenancing that even in the system, we still have some bad eggs, and it is very possible that some of them might connive, but the reality is that often times we give the information,” Osita stated.
Keystone Bank Limited and the Enterprise Development Centre (EDC) of Pan-Atlantic University have signed a landmark Memorandum of Understanding (MoU) to promote Small and Medium Enterprises (SMEs), youth entrepreneurship, and financial inclusion across Nigeria.
The MoU signing ceremony took place at the bank’s head office in Lagos on Tuesday, June 24, 2025.
Speaking at the event, Mrs Nnenna Anyim Okoro, the Executive Director, Corporate and South, Keystone Bank, described the partnership as a bold and strategic step toward accelerating national economic transformation.
According to her, the collaboration underscores Keystone Bank’s unwavering commitment to empowering the next generation of business leaders and fostering an inclusive financial ecosystem.
“At Keystone Bank, we believe that entrepreneurship is the heartbeat of sustainable economic development.
Across Nigeria, MSMEs are not just businesses; they are the dreams and daily struggles of men and women determined to create value, provide jobs, and build a better future. They are, quite literally, the engine room of our national economy.
“Our sponsorship of the Annual EDC SME Conference 2025 and support for the Global Entrepreneurship Week (GEW) Walk reflect our deep belief in the transformative power of small businesses.
“This partnership is also about financial inclusion, youth engagement, capacity building, job creation, and collaboration,” she stated.
Olayemi Sule, Group Head, Retail & Digital Banking, Keystone Bank, emphasized the innovative offerings customers can expect as a result of the partnership.
“Our customers should look forward to a suite of innovative financial products and digital solutions specifically designed to support business growth, enhance financial literacy, and improve market access.
Also speaking, Dr. Nnenna Ugo, EDC board member and Head, Alumni Relations and Support Services at Pan-Atlantic University, expressed optimism about the partnership’s long-term impact.
“We are super excited about this partnership and confident that it will drive transformation for both institutions.
“The EDC was established to build capacity and provide support services for SMEs. In the past 21 years, we have trained over 350,000 entrepreneurs across Nigeria.
“Keystone Bank’s support comes at a critical moment as we scale our programs and expand our reach ahead of the 2025 SME Conference and GEW Nigeria.
“The SME Conference is a powerful platform that brings together key players in the ecosystem each year to address pressing issues affecting small businesses.
“This collaboration strengthens our capacity to engage more entrepreneurs, provide deeper insights, and drive conversations that inspire growth, resilience, and innovation.
“We commend Keystone Bank’s leadership for its vision and dedication to inclusive economic growth. The bank has truly distinguished itself as a champion of enterprise, and we are proud to have them as a strategic partner,” she concluded.
As part of the agreement, Keystone Bank becomes the major sponsor of the 2025 EDC SME Conference and a key supporter of the GEW Walk, a flagship event during Global Entrepreneurship Week Nigeria 2025.
Both events are expected to attract thousands of entrepreneurs, investors, thought leaders, and policymakers, offering a vibrant platform for knowledge-sharing, networking, and business empowerment.
Fidelity Bank Plc on Wednesday refuted claims that its Managing Director, Dr. Nneka Onyeali-Ikpe, is involved in an ongoing fraud case concerning the account of Woobs Resources.
The Bank’s position follows reports published by Sahara Reporters alleging that Dr. Onyeali-Ikpe was listed as a defendant in the case.
However, documents sighted by Nigeria CommunicationsWeek revealed that the charge sheet dated May 12, 2025, named the defendants as Victor Ukutt, Fidelity Bank Plc, Whoba Ugwunna Ogo, and Safiya Whoba.
A statement by the Office of the Attorney General of the Federation and Minister of Justice dated June 9, 2025, confirmed that Onyeali-Ikpe’s name was struck off the charge list.
The Ministry noted that she was neither the Managing Director nor the account officer at the time the account in question was opened.
The clarification aims to dispel misinformation and uphold the integrity of the institution and its leadership.
Federal High Court in Lagos has fixed July 1, 2025, for the commencement of trial in a money laundering case involving Cititrust Holdings PLC and three of its subsidiaries.
The subsidiaries are Cititrust Funding PLC, Cititrust Credit Limited and Cititrust Financial Services Limited,
The companies are facing an eight-count charge filed by a team of prosecutors from the Economic and Financial Crimes Commission (EFCC), comprising Anasoh Henry Onyekachi, Frankklin Ofoma, Abdulhamid Lamido Tukur, and A.A. Usman.
According to the charge, between 2021 and 2023, the companies, all incorporated in Nigeria, allegedly operated investment management services without a valid licence from the Central Bank of Nigeria (CBN).
This act contravenes Section 57 of the Banks and Other Financial Institutions Act (BOFIA) 2020 and is punishable under Section 57(5) of the same legislation.
The prosecution also alleged that the companies conducted a Collective Investment Scheme without registering with the Securities and Exchange Commission (SEC), another violation of regulatory requirements.
In one of the counts, Cititrust Credit Limited is specifically accused of failing to report high-value financial transactions to the Nigerian Financial Intelligence Unit (NFIU).
These transactions include a N20 million transfer on January 7, 2021; a N200 million transfer on April 4, 2021; and a N200 million lodgement on January 29, 2021.
Additionally, both Cititrust Credit Limited and Cititrust Financial Services Limited are alleged to have made a single transfer and lodgement respectively of N42 million into their bank accounts on January 29, 2021, without proper disclosure to relevant authorities.
The alleged offences are in breach of Sections 11(1)(b) and 11(3) of the Money Laundering (Prohibition) Act 2022, as well as Section 54(1) of the Investment and Securities Act 2007, and are punishable under the respective laws.
The court is expected to begin full proceedings on July 1.
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