Top Eight Countries Where Nigerian Bank Customers Fell Victim To Fraud In 2023

The 2023 Annual Fraud Landscape report by the Nigeria Inter-Bank Settlement System (NIBSS) revealed an alarming trend of international fraud targeting customers of Nigerian banks.

Over the past half-decade, Nigeria’s financial sphere has witnessed a notable uptick in fraudulent activities, closely paralleling the expansion of digital payment transactions.

Specifically, the annual tally of fraud cases has skyrocketed by 112%, climbing from 44,947 cases in 2019 to 95,620 in 2023. 

Simultaneously, the financial losses attributed to fraud have surged dramatically by 496%, soaring from ₦2.9 billion in 2019 to ₦17.67 billion in 2023. 

Additionally, the ratio of total reported fraud value to the total transaction value over the past five years has experienced a slight upturn, from 0.0019% in 2019 to 0.0022% in 2023. 

These figures highlight the growing difficulty and complexity of combatting fraud in a rapidly evolving digital economy.

Both banking institutions and customers must remain vigilant with comprehensive fraud detection and prevention strategies as fraudsters continue to adapt and explore new tactics.

Here’s a list of the top 8 countries where Nigerian banks’ customers were defrauded in 2023:

1. United States: Despite a notable decrease in fraud cases from 3939 in 2022 to 486 in 2023, the United States remained the most affected country, with total losses amounting to ₦79.9 million, down from ₦95.83 million in the previous year. The high volume of losses, despite fewer cases, points to ongoing vulnerabilities and the substantial impact of each incident.

2. Ireland: Ireland witnessed a stark increase in fraud activity in 2023, with 109 reported cases, up from 68 in 2022, and financial losses escalating nearly tenfold to ₦15.5 million from ₦1.66 million. This surge underscores a worrying escalation in fraud severity and frequency.

3. United Kingdom: The United Kingdom (UK) reported 81 fraud cases in 2023, down from 172 in 2022, yet financial losses significantly increased from ₦5.11 million in 2022 to ₦10.8 million in 2023. This trend indicates a reduction in frequency but an increase in the severity or value of the fraud cases.

4. Luxembourg: Luxembourg recorded 10 fraud cases in 2023, resulting in losses amounting to ₦1.4 million. This entry is particularly troubling, suggesting that fraudsters are expanding their operations into new, possibly less-guarded European territories.

5. Singapore: Singapore reported only three fraud cases in 2023, yet these led to significant financial repercussions totaling ₦2.4 million. The high loss per case points to major vulnerabilities and the sophisticated nature of frauds conducted there.

6. Canada: Canada observed a decrease in fraud case numbers from 35 in 2022 to 13 in 2023, but reported an increase in financial losses, rising from ₦1.25 million in 2022 to ₦1.8 million in 2023. This suggests a shift towards fewer but more substantial targets.

7. Netherlands: Nine fraud cases were recorded in the Netherlands in 2023, amounting to a total loss of ₦1.4 million. The moderate financial impact serves as a critical alert to the potential rise in fraudulent activities in the region.

8. United Arab Emirates: The United Arab Emirates (UAE) reported five fraud cases, with total losses reaching ₦1.9 million in 2023. This emphasizes the Middle East as a frontier for fraudsters targeting Nigerian bank customers.