Chika Nwosu, Managing Director of PalmPay Nigeria, has cautioned Nigerians to be vigilant when using digital payment platforms. He noted that while digital payments offer convenience, they also come with security risks that consumers must be aware of. Nwosu's warning comes as reports of digital scams and fraudulent activities continue to rise in the country. He emphasized the need for Nigerians to exercise caution when making digital transactions.
According to Nwosu, digital payments are revolutionizing how people handle money, but this convenience must be matched with caution. He advised consumers to be wary of unsolicited messages, links, or requests for sensitive financial information. This warning is particularly relevant in light of recent incidents where Nigerians have lost significant amounts of money to digital scams. One user reportedly lost almost N400,000 after clicking on a fraudulent link.
The issue of digital fraud has become increasingly prominent in Nigeria, with many users falling victim to phishing, SIM-swap fraud, and account compromise. These types of social engineering attacks remain a concern, as criminals continue to develop new methods to target digital payment users. Nwosu stressed that understanding the risks associated with digital payments is crucial in reducing exposure to fraud.
A recent report from the Nigeria Inter-Bank Settlement System revealed that digital payment fraud losses decreased by 51 percent to N25.85 billion in 2025. Despite this decline, the risk of digital fraud remains high, and consumers must remain vigilant. The report also highlighted the importance of financial literacy in preventing digital fraud.
The risks associated with digital payments are further compounded by the use of lost or stolen devices. One user reported that money was withdrawn from his account after his mobile phone was stolen, highlighting the potential risks associated with financial accounts linked to lost or stolen devices. Nwosu advised consumers to take necessary precautions to protect their financial information.
To mitigate the risks of digital fraud, Nwosu recommended that consumers be cautious when responding to unsolicited messages or links. He also emphasized the importance of verifying the authenticity of websites and financial platforms before entering sensitive information. By taking these precautions, consumers can reduce their exposure to digital fraud.
PalmPay Nigeria is taking steps to combat digital banking fraud, including launching a financial literacy program in Kano. The program aims to educate residents on the risks associated with digital payments and how to protect themselves from digital fraud. The initiative is expected to benefit 5,000 Kano residents and is part of a broader effort to promote financial literacy and prevent digital fraud in Nigeria.
Key points
- Chika Nwosu warns Nigerians to exercise caution when using digital payment platforms due to growing scam tactics.
- Digital payment fraud losses decreased by 51 percent to N25.85 billion in 2025, but risks remain high.
- PalmPay Nigeria is launching a financial literacy program in Kano to educate residents on digital payment risks and prevention.
