Digital Payment Fraud Losses Decrease as Cybercriminals Evolve

Nigeria’s financial institutions experienced a significant reduction in reported digital payment fraud losses, falling from ₦52.26 billion in 2024 to ₦25.85 billion in 2025. However, this apparent success masks a concerning trend: cybercriminals are becoming increasingly sophisticated, with artificial intelligence (AI) enabling more damaging attacks.

The findings come from “The Compliance Reckoning” report released by Adhere and TechCabal at the Trust Frontier forum in Lagos on Friday. The event brought together regulators, bankers, fintech leaders, and law enforcement to address financial crime prevention strategies.

Evolving Threat Landscape

While the decrease in losses appears positive, experts warn that it doesn’t necessarily indicate a decline in overall fraud activity. Instead, attacks are becoming more targeted and technically complex, resulting in higher individual costs when they succeed. Since 2020, reported fraud losses have increased by approximately 350%, despite fewer actual fraud cases being reported.

The AI Factor

The report highlights AI as a transformative element in financial crime. Global fraud losses are projected to reach $442 billion by 2025, with AI-powered attacks generating returns nearly five times greater than traditional schemes. Cybercriminals are leveraging AI tools to create realistic fake identities, mimic voices, automate processes, and personalize scams at unprecedented scales.

Regulatory Pressure Mounts

Beyond the technological challenges, Nigerian financial institutions face a stricter regulatory environment. The Central Bank of Nigeria has issued 17 compliance directives since early 2024, covering cybersecurity, anti-money laundering, and data protection with deadlines extending through 2028.

The report emphasizes that compliance is no longer solely about avoiding penalties but also managing operational and reputational risks—particularly for institutions with international banking relationships.