**CBN Takes a Stand Against Digital Banking Fraud in Nigeria** The Central Bank of Nigeria (CBN) has recently issued a new directive aimed at boosting the security of digital banking services in the country. In a bid to curb the rising tide of fraud cases, the CBN has mandated that banks, fintechs, and payment service providers implement liveness checks and real-time validation against the Bank Verification Number (BVN) or National Identity Number (NIN) database for all account opening and reactivation processes. This development comes as Nigeria's instant payment systems continue to grow rapidly, with ₦284.99 trillion ($185.66 billion) in transactions recorded in the first quarter of 2025. However, this growth has also been accompanied by a surge in fraud cases, with data from the Financial Institutions Training Centre (FITC) indicating a 603% year-on-year increase in fraud losses to ₦3.29 billion in the same period. To address this issue, the CBN has set a deadline of July 1, 2026, for financial institutions to comply with the new directive. Among the new measures are the implementation of a ₦20,000 ($14.58) transaction cap on both inflows and outflows for newly activated mobile banking applications within the first 24 hours after activation. This cap is designed to limit the risk of fraud immediately after accounts or devices are set up. The CBN's efforts to strengthen Nigeria's digital banking infrastructure also include the recognition of artificial intelligence (AI) and machine learning as tools for financial crime detection. These technologies will be embedded into new compliance standards for financial institutions, further enhancing the security of digital banking services in the country. As Nigeria continues to experience a boom in digital banking transactions, the CBN's move is a welcome step towards creating a safer and more secure environment for users of these services. With the increasing adoption of digital banking channels, the CBN's efforts to tighten controls around online account opening, device access, and transaction authentication are crucial in limiting the opportunities for fraudsters to exploit these channels.