Nigeria’s reported losses from digital payment fraud may have decreased significantly in 2025. However, criminals are becoming increasingly sophisticated, and the use of artificial intelligence is making their attacks more damaging. This information comes from a new report released by the compliance platform Adhere in partnership with TechCabal.
The report titled “The Compliance Reckoning” was unveiled at the Trust Frontier forum held in Lagos on Friday. Regulators, banks, fintech executives, and law enforcement agencies gathered to discuss the future of preventing financial crime.
The report shows that losses from digital payment fraud fell from ₦52.26 billion in 2024 to ₦25.85 billion in 2025. At first, this looks like good news. However, the report warns that the drop does not necessarily mean that financial crime is decreasing.
Fraud attacks are becoming more targeted and sophisticated, leading to higher costs when they succeed. Since 2020, reported fraud losses have increased by about 350%, despite a decrease in the number of reported fraud cases.
AI is changing the economics of digital payment frauds
A key finding of the report is that artificial intelligence is changing how financial crime works. It estimates that global financial fraud losses will reach $442 billion by 2025. Fraud using AI is expected to earn returns that are about 4.5 times higher than traditional fraud schemes.
Fraudsters are now using AI tools to create realistic fake identities, mimic voices, automate attacks, and personalize scams in ways that were not possible before. As a result, financial institutions can not rely on traditional fraud controls alone.
Beyond the issue itself, the report notes that Nigerian financial institutions are facing a tougher regulatory environment.
The Central Bank of Nigeria issued 17 regulatory actions within 14 months, focusing on cybersecurity, anti-money laundering, and data protection, with compliance deadlines extending from 2026 to 2028.
The report contends that compliance has evolved beyond merely avoiding penalties. Insufficient compliance systems now create operational and reputational risks, especially for institutions engaged in international banking relationships.
Read also: ‘Nigeria’s ATM card is the safest in the world’, top cybercrime chief, AIG Uche Ifeanyi says
As AI becomes increasingly vital in the fight against financial crime, the report warns against considering technology as a complete solution. It emphasises that institutions best equipped to handle the next wave of fraud will be those that integrate AI with enhanced governance, improved customer risk profiling, ongoing transaction monitoring, and strengthened collaboration throughout the financial ecosystem.
“The next eighteen months will be decided by architecture, not by tools,” the report stated, stressing that technology works best when supported by strong compliance processes and coordinated industry action.
The report highlights that Nigeria has a shortage of cybersecurity workers and a growing digital payments system. It warns that both of these issues put pressure on banks and fintech companies to improve their detection capabilities. If they do not, more skilled attackers might take advantage of current weaknesses.
