Digital bank, PalmPay, has warned customers against clicking suspicious links and authorising unauthorised transactions, as it urged users to verify customer support channels to protect their accounts from fraud.
The financial technology company gave the advice in a customer security advisory following the recent Customer Service Week, highlighting the risks of fraudsters impersonating customer service representatives to obtain sensitive information and deceive users.
In an advisory issued on Thursday, PalmPay said impersonation scams could occur through phone calls and messaging platforms, with fraudsters posing as representatives of financial institutions to offer fake rewards, promise refunds, or request account details under the guise of resolving complaints.
The warning comes against the backdrop of billions of naira lost to fraud across Nigeria’s banking and payments industry. Data from the Nigeria Inter-Bank Settlement System showed that financial institutions lost N25.85bn to fraud in 2025, down from N52.26bn in 2024.
Social engineering accounted for 47 per cent of fraud volume and was associated with N17.84bn in losses in 2025, according to figures presented by NIBSS at the Nigeria Electronic Fraud Forum in January 2026. Such schemes often involve manipulating victims into disclosing confidential information or authorising payments under false pretences.
“Customers should not to disclose their one-time passwords, personal identification numbers, passwords, or verification codes to anyone,” it stated, warning them to independently verify requests for sensitive information or actions on their accounts before responding.
The company also urged users to confirm the authenticity of social media accounts and other communications claiming to represent it before sharing personal or financial information.
For merchants, PalmPay recommended checking payments through official transaction records before releasing goods or services, rather than relying solely on screenshots or messages presented as proof of payment.
The company further advised customers who notice unfamiliar transactions, suspect fraudulent activity or experience account access problems to seek assistance through its official customer support channels.
It encouraged users to familiarise themselves with the security features available in the PalmPay app’s Security Center, keep their account credentials confidential, and report suspicious activity promptly.
The company said the guidance formed part of its ongoing PalmPay Dey For You campaign, which includes customer education on fraud prevention and safer digital financial transactions.