Bamidele Famoofo
L-R: Roosevelt Ogbonna, Non-Executive Director, Access Holdings plc; Aigboje Aig-Imoukhuede, Non-Executive Chairman; Bolaji Agbede, Acting Group Chief Executive Officer, and Sunday Ekwochi, Company Secretary, at the 3rd Annual General Meeting of Access Holdings plc, held in Lagos, recently.
As global financial fraud surges to over $485 billion in annual losses, Access Holdings Plc is setting a new standard in Africa’s banking industry through aggressive and strategic investment in technology aimed at combating the growing threat.
With Nigeria’s financial sector experiencing a spike in digital fraud, particularly through mobile and online channels, Access Holdings has emerged as a front-runner in fraud prevention through innovation.
In 2024, Access Holdings, the parent company of Access Bank, recorded a landmark N193.5 billion ($120.5 million) in technology investments, a 147 per cent increase over the previous year and the highest IT spend in Nigeria’s banking industry. This bold move has paid off significantly. The Group reported a 73 per cent drop in fraud-related losses, falling from N6.15 billion in 2023 to just N1.64 billion in 2024.
The amount lost to fraud in Nigeria’s digital payments sector has surged by 350 per cent over the past five years, rising from N11.61bn in 2020 to N52.26bn in 2024, according to a report by the Nigeria Inter-Bank Settlement System in February.
According to the report, between 2023 and 2024, total attempted fraud and actual losses rose sharply by 338 per cent and 195 per cent, respectively. The report attributed this significant increase to fraud incidents at some financial institutions, which were linked to system vulnerabilities.
The second and third quarters of 2024 saw a spike in fraud activities before declining in the fourth quarter. The report highlighted cases where the identities of senior citizens were stolen and used to open fraudulent accounts. In one instance, an estimated N400m in fraud proceeds was transferred into these accounts and subsequently dissipated.
The report also exposed fraudulent activities involving compromised bank staff and agents who registered bank verification numbers for minors to open enterprise accounts. In one case, N495.3m was funnelled through an account opened with a BVN registered for a minor. In contrast, another similar case saw N507m moved through a bakery’s enterprise account. The implicated bank staff and agents have been reported to law enforcement agencies for further action.
It added that further investigations uncovered a trend where static images of Asians and Nigerians were used to generate BVNs, which were then linked to accounts in microfinance banks, mobile money operators, and payment service banks. Some of these accounts received fraud proceeds amounting to N329m shortly after they were created. Several BVNs generated using still images were later discovered and deleted, while agents responsible for the fraudulent enrolments have been reported for prosecution.
Globally, banks like JPMorgan Chase are increasing technology budgets to combat fraud, with a record $17 billion in 2024. Nigeria is not left behind. Among local peers, Access Holdings has demonstrated the strongest correlation between strategic tech spending and measurable fraud reduction.
Access Holdings’ investments include AI-driven transaction monitoring, biometric verification systems, enhanced core banking upgrades, and real-time fraud analytics, all designed to detect and respond to threats with speed and precision.
While digital innovation is expanding access to banking, it has also exposed customers and institutions to evolving threats. According to Nigeria Inter-Bank Settlement System (NIBSS) data, fraud incidents in the country jumped 112 per cent from 2019 to 2023, underscoring the urgent need for systemic countermeasures.
Access Holdings’ proactive stance not only affirms its leadership in Nigeria’s digital banking landscape but also offers a compelling model for financial institutions across Africa looking to secure trust in an increasingly digital world.
Commenting on the investment by Access Holdco, Bolaji Agbede, acting group chief executive officer of Access Holdings Plc, said: “In a world of rising digital risks; we have chosen to lead with innovation and resilience. Our sustained investment in cybersecurity, AI-driven fraud detection, and biometric authentication is delivering real results, and reinforcing confidence in our digital banking platforms.”
