SIM-swap fraud has become a significant threat to Nigerian crypto users, with attackers using social engineering tactics to convince mobile networks to transfer control of a user's phone number to a SIM card they control. This type of attack allows criminals to intercept one-time passwords and authorize transactions without breaching bank systems. According to a report by bne IntelliNews, in April 2026, SIM swap attacks resulted in significant financial losses for Nigerian banks.
The Nigerian government has implemented two layers of defense against SIM-swap fraud, primarily targeting banks and networks. The first layer involves a SIM replacement rule, which requires subscribers to present a National Identification Number (NIN) and have it verified by the National Identity Management Commission. The second layer, introduced in April 2026, is the Telecom Identity Risk Management System, which enables banks to check if a phone number linked to a transaction has been recently swapped or flagged.
However, these defense mechanisms may not provide adequate protection for crypto users, as they primarily focus on bank accounts. Crypto users must take proactive steps to secure their accounts, particularly those tied to their phone numbers. Experts recommend that users stop relying on text-message codes as a second layer of security for their crypto and email accounts. Instead, users should opt for authenticator apps or passkeys, which are more secure and resistant to phishing and SIM-swap attacks.
The US Cybersecurity and Infrastructure Security Agency (CISA) ranks two-factor authentication (2FA) options from strongest to weakest based on their vulnerability to phishing, push bombing, SS7 interception, and SIM swaps. According to CISA, passkeys or hardware keys are considered the "gold standard" of 2FA, as they are phishing-resistant. Authenticator apps with number matching and those showing a 6-digit code are also more secure than SMS or voice codes.
To secure their accounts, users should prioritize locking down their email accounts first, as they often have the power to reset other accounts. Users should add a passkey or authenticator app to their email accounts and remove their phone number as a recovery option if possible. Next, users should focus on securing their exchange and wallet apps by switching to authenticator apps for sign-in and withdrawal confirmation and disabling SMS as a fallback.
In conclusion, Nigerian crypto users must take proactive steps to protect their accounts against SIM-swap fraud. By understanding the risks and implementing robust security measures, such as using authenticator apps or passkeys, users can significantly reduce the risk of financial losses due to SIM-swap attacks. Experts emphasize that securing accounts takes about an hour and costs little or nothing, making it a worthwhile investment for crypto users.
Key points
- Experts recommend using authenticator apps or passkeys instead of SMS codes for 2FA.
- Nigerian government has implemented defense mechanisms, but crypto users must take proactive steps to secure their accounts.
- Users should prioritize securing their email accounts first, followed by exchange and wallet apps.
