Why Nigeria must strengthen digital payment infrastructure, curb fraud risks

For many Nigerians, scam calls, phishing messages, and fake websites are becoming increasingly difficult to identify as fraudsters adopt more convincing ways to impersonate trusted institutions and services.

Africa now has approximately 570 million internet users who depend on digital platforms for banking, healthcare, education, and government services, based on the 2026 INTERPOL’s African Cyberthreat Assessment Report.

However, many users have been exposed to cybercriminals because the security systems, laws, and institutions meant to protect them have not kept up with the speed of adoption.

The research findings, reported cybercrime losses across Africa more than doubled between 2024 and 2025, rising from $192 million to $484 million, while identified victims grew from 35,000 to 87,000.

INTERPOL estimated that cybercrime caused at least $5 billion in direct economic damage across the continent in 2025, and that 55 percent of reported cases involved AI in some form.

Accordingly, mobile money fraud is now the most prevalent online scam, with 97 percent of responding countries identifying it as a major threat.

Recent incidents shared online show how easily everyday interactions can turn into financial risks.

In one case, a Nigerian user shared on X how she lost about N400,000 after clicking a link relating to an alleged Federal Road Safety Corps (FRSC) traffic offence and entering her card details on what appeared to be a website.

The experience highlighted how increasingly convincing phishing attempts can be, particularly when they appear to come from familiar institutions or government services.

The challenge is not limited to phishing links. In another social media post, a user described how money was subsequently debited from his account after his mobile phone was stolen.

In situations like this, losing a device can quickly become a broader concern about the security of the financial accounts connected to it.

While digital payment fraud losses in Nigeria fell by 51 percent to N25.85 billion in 2025, Nigeria Inter-Bank Settlement System Plc (NIBSS) says social engineering remains a significant concern, with phishing, SIM-swap fraud and account compromise continuing to evolve.

Across Africa digital inclusion has expanded access to education and financial tools, but cyber education has struggled to keep pace.

Young people often expose themselves to identity theft, phishing scams, and account takeovers without realizing it, because they lack practical security habits.

“Every young person deserves the confidence to learn, work, connect, and build their future safely online,” Simi Nwogugu, President and CEO of JA Africa, stated.

Nwogugu disclosed that JA Africa is empowering Africa’s next generation with the digital safety skills needed to thrive in an increasingly connected world, through an initiative tagged CyberSmart.

“By building simple cyber-safe habits today, young people can protect their opportunities tomorrow.”

Read also: Police bust cybercrime syndicates over $2m online investment, romance scams

Deepening digital awareness of fraud

A compromised account or stolen phone can disrupt everyday transactions and create uncertainty about whether their money is truly safe.

The experiences being shared by Nigerians reinforce an important reality: safer digital banking depends on both strong security systems and customers understanding how to recognise and respond to threats.

It is against this backdrop that digital payment platforms are placing greater emphasis on helping customers recognise potential threats and make better use of the security tools available to them.

“Trust is fundamental to banking. Customers need to know that the institution they rely on is regulated, secure, dependable, and available when they need it,” Chika Nwosu, managing director, PalmPay Nigeria, stated.

According to him, the digital payment platform initiated ‘PalmPay Dey For You’ campaign, which reflects it’s broader approach to security by design, where protection is embedded into the customer experience rather than introduced only when something goes wrong.

“At PalmPay, protecting our customers and giving them greater control over their banking experience is central to how we operate.”

Nwosu stated that the digital platform wanted customers to understand the security tools available to them, use the tools confidently, and know that PalmPay remains a reliable financial partner for their everyday needs.

He added that through educational content, FAQs, customer forums, and product-led communication, the campaign will provide practical information on account security, fraud awareness, and the steps customers can take to better protect themselves.

“For PalmPay, the message is clear: convenience, value and security should work together,” Nwosu stated.

He reiterated that with regulatory oversight, a growing suite of customer-protection tools and the trust of millions of users, PalmPay remains committed to delivering a banking experience Nigerians can depend on.

The evolving fraud risks

Unlike generic, highly technical cybersecurity courses, CyberSmart was built for the day-to-day realities of young Africans to stay safe on the digital space.

As a leader in youth entrepreneurship, financial-health, and work-readiness education across Africa, JA Africa is extending its reach into digital safety, now a foundational life skill for success in education, entrepreneurship, and employment.

CyberSmart is hosted on JA Africa’s Skills Lab platform, which has reached more than 100,000 young people across the continent since 2020, and can be accessed on any internet-enabled device.

“When learners recognize these situations in characters and scenarios that look like their own lives, the lessons stick. Our goal is to turn awareness into everyday habits that young people carry into school, work, and business,” Bimpe Olufemi, Vice President, Digital, JA Africa stated.

On the other hand, digital platforms are strengthening their dispute-management experience through initiative like ‘Dispute Page’ by PalmPayq, which gives customers a dedicated channel to submit and monitor transaction disputes directly within the app.

As scams become increasingly convincing, lived experiences show why customers need both the awareness to recognise threats and the tools to respond when something goes wrong.

According to Nwosu, upgraded PalmPay Security Center brings protection tools and secure support options together, giving customers greater control over their account.

He reminded customers to avoid sharing sensitive information such as PINs, OTPs, and passwords. According to him, customers are also encouraged to be cautious with unexpected links and messages.

He added that customers should verify who is contacting them, and use available security controls when they suspect their account may be at risk.

“For example, customers whose phones are lost or stolen can use *861*12# USSD Lock to restrict access to their PalmPay account and reduce the risk of unauthorised transactions,” Nwosu stated.

However, customers concerned about activity during late hours, Night Guard allows them to set protection hours between 11:00 PM and 7:00 AM, with additional verification required for transfers during the selected period. “Large Transaction Shield provides additional verification for large-value transactions.”