In 2023, Nigerian financial institutions lost ₦17.6 billion ($11.2 million) to fraud. This amount has increased each year over the past five years, from ₦2.96 billion ($1.8 million) in 2019 to ₦11.61 billion ($9 million) in 2022. Between 2019 and 2023, the total amount lost to fraud went up by 496%.
A deeper look at some news-reported cases revealed that ₦82.4 billion ($52.6 million) was lost in just six major fraud incidents. It’s important to note that not all fraud cases were reported by financial institutions, as only 37% complied with reporting requirements, leaving 63% unreported.
Notable Fraud and Hack Cases (2023-2024)
- First Bank
- Loss: ₦40 billion ($29 million)
- Year: 2023
- Details: A First Bank employee allegedly siphoned ₦40 billion into various accounts, including his wife’s. The theft was discovered following a customer’s complaint about unauthorized transfers. The employee is currently on the run, and First Bank has initiated legal actions to freeze the affected accounts.
- Flutterwave
- Loss: $24 million
- Year: 2023
- Details: Flutterwave secured a court order to recover $24 million lost due to unauthorized POS transactions. A technical glitch in October 2023 led to this loss, and Flutterwave is working with authorities to recover the funds.
- Flutterwave
- Loss: ₦11 billion ($7 million)
- Year: 2024
- Details: In April 2024, Flutterwave experienced a security breach resulting in unauthorized transfers of ₦11 billion to multiple accounts. The breach involved funds being transferred across five financial institutions to avoid detection.
- Flutterwave
- Loss: ₦2.9 billion ($6.3 million)
- Year: 2023
- Details: In early 2023, hackers stole ₦2.9 billion from Flutterwave. The breach involved multiple unauthorized transfers across 28 commercial banks in Nigeria. Flutterwave worked with law enforcement to investigate and recover the funds.
- Flutterwave
- Loss: ₦450 million
- Year: 2023
- Details: In April 2023, following the ₦2.9 billion breach, new breaches totaling ₦450 million were reported. These involved cryptocurrency transactions and some of the stolen funds were sold to a Chinese merchant.
These incidents highlight significant security challenges faced by Nigerian financial institutions, mirroring global trends where banks are projected to lose $442 billion to financial crimes in 2023.