PalmPay Leads the Fight Against Fraud as Nigeria Loses Over ₦42 Billion in Q2 2024

Fraud continues to threaten Nigeria’s financial sector, with alarming statistics revealing the scale of the problem. 

In Q2 2024 alone, over 11,500 fraud cases were reported, involving ₦56.3 billion, marking a 1,784.94% increase in the total amount involved compared to Q1, according to the Financial Institutions Training Centre (FITC).

Total losses increased to ₦42.6 billion, an 8,993.04% increase from the preceding quarter.

Mobile, web, and POS-related fraud remain the most prevalent types, with cybercriminal activities involving external actors increasing by 5.20% and staff involvement in fraud cases rising sharply by 23.40% from Q1 to Q2 2024. 

But PalmPay is not sitting back on this. The fintech platform is rising to raise awareness of the urgent need for collective action to fight fraud and secure Nigeria’s financial systems.

PalmPay’s Initiative Against Fraud

In commemoration of the 2024 International Fraud Awareness Week, PalmPay, a leading digital financial platform in Nigeria, organised a community walk on 22 November in Lagos.

Themed “United Against Fraud: Building a Safer Future”, the initiative aimed to educate the public on fraud prevention and digital security.

Addressing participants, PalmPay’s managing director, Chika Nwosu, noted the importance of tackling fraud collaboratively:

“Fraud is more than just a crime—it is a systemic threat that undermines trust, compromises security, and disrupts progress. Its effects are far-reaching, impacting personal livelihoods and the integrity of businesses.”

He further highlighted the growing sophistication of fraudsters, leveraging vulnerabilities in digital payment platforms:

“Recent statistics from the Financial Institutions Training Centre (FITC) reveal that over 11,500 fraud cases were reported in Q2 2024—a stark reminder of the growing sophistication and persistence of these threats. These figures are more than numbers; they represent real people whose trust has been broken and whose finances have been compromised.”

Educating the Public on Fraud Prevention

During the event, PalmPay reiterated the lessons for fraud prevention, including safeguarding personal information, verifying suspicious emails, and refraining from disclosing sensitive information, even to close family members.

He stated: “You don’t need to open suspicious links. Verify them first. Once you have a suspicious email, report it and ask questions. We have built a robust system that cannot be penetrated by fraudsters, but the public must also avoid compromising their identity.”

PalmPay also stressed the importance of educating underserved communities where ATMs are frequently unavailable. According to a recent survey by the NDIC, 70% of ATMs in urban areas experience cash shortages, with rural areas facing even higher challenges.

“POS agents play a necessary role in bridging the gap in financial inclusion. While ATMs are limited by cost and location, agency banking ensures that financial services are accessible, even in remote villages.”

PalmPay Emphasises Collaboration with Stakeholders

PalmPay reiterated its focus on fraud prevention through strong collaboration with law enforcement agencies such as the EFCC and the Nigerian Police Force.

“We maintain a close relationship with all security agencies. Whenever there is an issue, we provide them with the necessary information promptly to address fraudulent activities,” Nwosu explained.

“Together, we can create an environment where individuals and businesses can thrive without fear, knowing that trust and security are at the heart of our digital world.”

PalmPay affirmed its intention to extend such campaigns nationwide, strengthening its mission to build a safer and more inclusive financial ecosystem.