Cyber Fraud in Nigerian Banks: Trends, Regulatory Gaps, and Mitigation Strategies (2020–2025)

Cyber fraud poses a growing threat to Nigeria’s banking sector, driven by rapid digitalisation, expanding electronic payment systems, and weaknesses in cybersecurity governance. Although reported fraud incidents have declined, financial losses rose sharply from ₦17.67 billion in 2023 to ₦52.26 billion in 2024, indicating increased attack sophistication. This study qualitatively reviews literature, regulatory frameworks, and major fraud cases between 2020 and 2025 to examine the drivers, impacts, and control gaps in Nigerian banks. The key challenges identified include legacy system vulnerabilities, insider collusion, weak internal controls, and regulatory enforcement gaps. The paper evaluates mitigation strategies within the context of Nigeria’s evolving regulatory landscape. The findings show that regulatory and law enforcement measures alone are insufficient without strong technical controls, effective governance, staff awareness, and sustained public–private collaboration to enhance cybersecurity resilience.