ADVERTISEMENT
  • Hausa Edition
  • Podcast
  • Conferences
  • LeVogue Magazine
  • Business News
  • Print Advert Rates
  • Online Advert Rates
  • Contact Us
Saturday, September 20, 2025
Leadership Newspapers
Read in Hausa
  • Home
  • News
  • Politics
  • Business
  • Sport
    • Football
  • Health
  • Entertainment
  • Education
  • Opinion
    • Editorial
    • Columns
  • Others
    • LeVogue Magazine
    • Conferences
    • National Economy
  • Contact Us
No Result
View All Result
  • Home
  • News
  • Politics
  • Business
  • Sport
    • Football
  • Health
  • Entertainment
  • Education
  • Opinion
    • Editorial
    • Columns
  • Others
    • LeVogue Magazine
    • Conferences
    • National Economy
  • Contact Us
No Result
View All Result
Leadership Newspapers
No Result
View All Result

Tackling The Surge In Fintech Fraud

by Editorial
2 years ago
in Editorial
Fintech Investment Financial Internet Technology Concept

Fintech Investment Financial Internet Technology Concept

Share on WhatsAppShare on FacebookShare on XTelegram

In recent years, the landscape of financial transactions in Nigeria has witnessed a profound transformation with the advent of Fintech banks.

Advertisement

While these innovative platforms were initially designed to provide efficient payment solutions, a disturbing trend has emerged, revealing the vulnerability of Fintech customers to cybercriminals.

Sadly, the consequences of this growing menace are far-reaching, posing threats such as capital flight, loss of confidence in the financial sector, and a failure of anti-graft agencies and industry regulators to address the crisis adequately.

The statistics are alarming, indicating that Nigerian banking customers have lost a staggering N51 billion to fraud between 2019 and July 2023.

It is instructive to note the surge in these incidents is attributed to the cash crunch resulting from the naira redesign and cash withdrawal limit policies implemented by the Central Bank of Nigeria (CBN).

Related News

Gaza: Taking Vengeance Too Far

18 hours ago

Nigeria And The Global Teacher Shortage Crisis

2 days ago

While traditional banking institutions grapple with these challenges, Fintech banks find themselves increasingly targeted by cybercriminals due to perceived weaknesses in their security measures.

One of the primary factors contributing to the rise in cyber fraud within the Fintech sector is the misunderstanding of the platforms’ intended purpose.

READ ALSO: Fintech: Nigerians Lose N51bn To Cybercriminals

Market participants, artisans, and entrepreneurs have erroneously treated Fintech banks as deposit money banks, leading to substantial withdrawals from traditional banks into these Fintech platforms.

What’s more, there are concerns of connivance by insiders as well as the void created by cybersecurity experts who have abandoned Nigeria for greener pastures.

The consequence has been an increased number of individuals falling victim to fraudulent activities, with cybercriminals exploiting the porous security of these payment platforms.

The implications extend beyond financial losses, as reports of victims facing difficulties in recovering their funds become more prevalent.

Perpetrators leverage Point of Sale (PoS) machines and online trading platforms, leaving victims with little recourse for restitution.

The lack of physical offices for many Fintech banks further compounds the challenge of recovering stolen funds, exacerbating the sense of helplessness experienced by defrauded customers.

The rising rate of fraud has not gone unnoticed, with rumors circulating on social media platforms suggesting that some Fintechs may be on the brink of closure. Individual accounts of loss and frustration, such as a trader’s experience at the Opay office after losing over N20,000, underscore the urgency of addressing this crisis.

As a result, it is imperative to explore comprehensive solutions that not only mitigate the risks but also bolster the resilience of Fintech platforms against cyber threats.

One proposed solution is the adoption of blockchain technology by Fintech companies. Blockchain, as an advanced database mechanism, provides transparent information sharing within a business network.

Co-founder of VPD Money, Adeleke Mohammed, emphasizes that blockchain can significantly reduce fraud by recording transactions in a tamper-resistant manner.

This technology ensures that all parties involved in a transaction verify and validate it, adding an additional layer of security against unauthorized transfers.

Moreover, Fintech companies must prioritize the implementation of robust Know Your Customer (KYC) procedures. Adequate onboarding processes that adhere to KYC policies and anti-money laundering regulations can act as a deterrent to fraudsters attempting to exploit the platform.

Fintechs should establish dedicated fraud departments responsible for monitoring transactions, identifying anomalies, and taking proactive measures to prevent fraudulent activities.

Education is another critical aspect of addressing the current crisis. Fintech companies should invest in customer awareness programs, enlightening users on best practices to secure their information.

Introducing biometric authentication methods, such as fingerprint verification or facial recognition, can add an extra layer of security, ensuring that even in the event of a lost phone, unauthorized access to funds remains a formidable challenge.

Needless to say, the escalating threat of cyber fraud in the Fintech sector demands urgent attention and proactive measures. The collaboration between Fintech companies, regulatory bodies, and law enforcement agencies is crucial to creating a secure and resilient financial ecosystem.

By adopting technologies like blockchain, strengthening KYC procedures, and prioritizing customer education, the Fintech industry can overcome the current challenges and continue to play a pivotal role in advancing financial inclusion in Nigeria.

 

Join Our WhatsApp Channel

Tags: Fintech Fraud
SendShare10177Tweet6361Share

Other News Updates

Editorial

Gaza: Taking Vengeance Too Far

2025/09/20
Editorial

Nigeria And The Global Teacher Shortage Crisis

2025/09/19
Editorial

Need For Transparency In Voter Registration

2025/09/18
Editorial

As Philanthropy Becomes Politics By Stealth

2025/09/17
Editorial

The Planned Armed Forces Museum

2025/09/16
Editorial

The NIWA Enforcement Problem

2025/09/15
Leadership Conference advertisement

LATEST

Kwara Chairmen Make U-turn, Shelve Closure Of Cattle Markets In 7 LGs

Communities Thrown Into Darkness As Transmission Tower Collapses In Kaduna

EDSIEC Defies Court Order, Conducts By-Elections For Councillors In Edo

‘If I Wanted 3rd Term, I Would Have Gotten It’, Obasanjo Breaks Silence On Tenure Elongation Allegations

Ooni Crowns 20 Monarchs In Osun

DHQ Probes Explosion At DICON Factory In Kaduna

Kano Renames Ministry To Dignify People With Special Needs

‘Repercussions Of Your Past Scams Hunting You Now’, Wike’s Aide Replies Sowore

2027: Leaders Who Fail To Perform Should Be Voted Out — Jonathan

Expert Unveils Al-driven Solution To Support e-Commerce

© 2025 Leadership Media Group - All Rights Reserved.

No Result
View All Result
  • Home
  • News
  • Politics
  • Business
  • Sport
    • Football
  • Health
  • Entertainment
  • Education
  • Opinion
    • Editorial
    • Columns
  • Others
    • LeVogue Magazine
    • Conferences
    • National Economy
  • Contact Us

© 2025 Leadership Media Group - All Rights Reserved.