Nigeria's digital banking sector is facing a growing threat from sophisticated fraud attempts. These attempts are made possible by the rapid expansion of digital banking services and faster transactions. The sector's increasing complexity has led to a rise in cyber-related financial crimes.
A recent case involving First City Monument Bank (FCMB) has highlighted the bank's response to such incidents. The case, which was detected in December 2025, involved unauthorised transactions tied to a digital product. According to reports, over ₦3 billion was targeted, but about ₦677 million reached the culprits. The bank's cyber security and monitoring capabilities, as well as improved collaboration with regulated financial institutions and law enforcement agencies, contributed to the recovery of ₦2.4 billion and the apprehension of several suspects and beneficiaries.
The Economic and Financial Crimes Commission (EFCC) is leading the ongoing recovery and prosecution efforts. Proceedings at the Lagos State Special Offences Court have resulted in convictions, including that of a repeat offender, with restitution orders issued. Related matters are being handled at the Federal High Court in Lagos, where additional suspects are being tried in connection with the scheme.
The FCMB case serves as a stark reminder of the evolving nature of cyber-crime in Nigeria's financial sector. The bank's limited exposure relative to the amount targeted and ongoing recovery efforts reflect a shift towards a stronger focus on response and recovery. This shift is a welcome development, as it demonstrates the sector's growing sophistication in addressing cyber-related financial crimes. However, the sector's continued growth and expansion also mean that fraud attempts are likely to persist. As such, institutions will be increasingly judged on their ability to prevent incidents, as well as their effectiveness in responding and recovering when they occur. The safety of customer deposits remains a top priority, and institutions must continue to invest in robust cyber security measures to maintain trust in the financial system.
