Akin Adeola, a 400-level student of Lagos State University, was attacked by armed robbers earlier this year. She thought the worst was over after losing her phone. But soon after, she began receiving bank debit alerts.

Within hours, she noticed that fraudsters had wiped out her entire balance, leaving her with nothing. Akin confessed that only one of her banks had intervened before the fraudsters struck.

“I did everything I was supposed to do. I reported to my banks immediately, and they said they had already blocked my accounts. Later, I found out that only one bank had blocked one account. The other bank did not. All my money is gone,” she recalled, in tears.

Her experience echoes a troubling pattern across Nigeria’s banking halls and digital platforms. Customers frequently report lost cards, stolen phones, or suspicious debit alerts, only to watch helplessly as fraudsters drain their accounts despite early warnings. Videos of distraught depositors crying or staging protests in banking halls have become an all-too-common feature on social media.

For instance, an X User, @TheSamira_Sani, reported attempting to block her mother’s bank account after her phone was stolen. She contacted the customer service via chat, where an agent confirmed the request was handled. However, upon visiting the bank, she found that nothing had been done. This delay left the account vulnerable to attack.

Another user, @_kingjonah, described lending his phone to someone, after which N500,000 vanished from his account without any debit alert or notification.

This lack of timely alert or blocking mechanism allowed the funds to be drained undetected. “Two days later, she asked to borrow my phone to check something. I didn’t even hesitate to just gave it to her. Later that evening, I tried to make a transfer and noticed my balance was N500,000 short. I checked my SMS alert and email notifications history. The only transfers I saw were the ones I made. No debit alert, no email notification,” he lamented.

Yet a bank customer shared via @breketeConnect, who reported N2 million disappearing from her account through unauthorized transactions. The bank only sent the alert a month later, preventing any prompt blocking or intervention, leading to the full loss.

The tweet stated, “Allegedly… A bank customer has cried out over a shocking incident: N2 million mysteriously vanished from her account without her authorization. Even more baffling, she only received the transaction alert one month after the withdrawal.”

Fraud surging

The problem is part of a wider surge in cyber fraud. A report by Surfshark Nigeria shows that cyber theft risk rose by 56 percent in the first half (H1) of 2025, affecting more than 152,000 accounts. Alarmingly, 56 percent of those whose details were exposed now face risks of both bank account theft and identity fraud.

The Nigeria Inter-Bank Settlement System (NIBSS) reported that about N400 million was stolen in 2024 through accounts opened with stolen identities.

Analysts believe the true scale of fraud may be even higher, as many victims do not escalate complaints or give up after long resolution delays.

These breaches have compounded public frustration with banks’ perceived lack of accountability. Despite technological advancements, many customers accuse banks of failing to act quickly when fraud incidents are reported, or of shifting the blame back to them.

Systems weaknesses

Some of the vulnerabilities are tied to outdated systems. A branch manager at a tier-1 bank admitted that loopholes in a former core banking platform contributed to fraudulent withdrawals.

“If someone lost their phone and used the USSD code to block their account, the platform would often only block the current account, leaving the savings account still active. This was the loophole fraudsters exploited. We later moved to Finacle to close these gaps,” she explained.

While upgrades to core platforms like Finacle promise better security and integration, experts warn that technology alone cannot solve the crisis.

In 2024, banks doubled their IT investments to N518.5 billion, driven by the growth of cashless transactions, fintech competition, and regulatory pressures. Yet, the surge in fraud risks shows that more investment is still needed in cybersecurity infrastructure and rapid-response systems.

Amid the mounting pressure, five of Nigeria’s top lenders have ramped up their IT budgets in 2025. Zenith Bank led the sector, doubling its half-year spend to N49.88 billion from N23.09 billion last year.

GTCO followed with N37.76 billion, slightly above the N36.60 billion spent in H1 2024. Stanbic IBTC allocated N23.74 billion, up from N15.86 billion, while UBA committed N6.72 billion, nearly unchanged from last year.

The biggest leap came from Wema Bank, which raised its IT spend to N8.65 billion, compared with just N1.13 billion a year ago, underscoring its commitment to digital growth through its ALAT platform.

Together, these five banks invested N126.8 billion in IT in the first half of 2025, a record outlay aimed at modernizing operations and fortifying cybersecurity.

Yet, for customers like the Lagos State University student who lost her savings despite doing everything right, the true test will be whether these investments can finally translate into safer banking experiences.

Jide Awe, tech policy advisor and founder of Jidaw.com, said the persistence of fraud amid rising investments points to operational and ethical shortcomings.

“The issue is not just the sophistication of fraudsters, but the inadequate response from the banks. Real-time fraud detection is underutilized, and customer complaints are often slowed by bureaucracy. These failures undermine consumer trust, which is the lifeblood of banking,” Awe said.

He stressed that customer confidence will only improve if banks overhaul their fraud response systems, invest in technology, staff training, and communicate more transparently about refunds and compensation timelines. (BusinessDay)