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ALERT: Mobile phones are now the preferred channel for fraudsters



The 2018 fraud summary released by the Nigeria Electronic Fraud Forum (NeFF) has shown the most fraudulent activities were carried out using mobile applications and USSD channels.

The value of fraud carried out on mobile channels rose by 72.2% from N347.64 million in 2017 to N598.8 million in 2018.

Fraud through ATM channels, which was the highest in 2016 and 2017, dropped to N497,124 million from N464,514 million in 2016 and N497,643 million in 2017.

Presenting the report, Sam Okejere, NeFF chairman and director, payment system at the Central Bank of Nigeria, said the data might be an early warning sign.


“This could be an early warning sign that fraudsters are shifting focus to mobile attacks and testing the waters in different types of mobile and online banking fraud in 2019.

“The truth is that you do not need to go to a bank’s branch to carry out a transaction. Most people are carrying their cards in their phones. The money is not on the phone but is a channel through which you can assess your bank account and the money in it.

“It is because the attention of the cyber attackers has moved to the mobile platforms. They are one of us, so they know where the interest is going. One of the things we are doing is to create awareness for both the users and the operators so that they can tighten the security around the mobile device.”

Fraudulent activities carried out through internet banking declined from N143,144 million in 2017 to N92,770 million.

In its 2019 fraud forecast, NeFF said financial institution will be the major target of criminal activities.

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