Wema Bank records $5.3 million fraud exposure as insider risks climb in Nigeria

Wema Bank Plc, Nigeria’s longest-surviving indigenous lender and a pioneer in digital banking, reported N7.19 billion ($5.3 million) fraud exposure across 1,489 cases in 2025, with actual losses of N847.6 million ($620,000), highlighting operational risks in Nigeria’s banking sector.

Fraud losses rise despite controls

The figures, according to Wema Bank’s 2025 annual report, mark a sharp increase from 2024, when fraud exposure stood at N255.9 million ($188,000), with losses limited to N29.4 million ($21,500). The widening gap between attempted fraud and actual losses reflects a growing volume of incidents, even as the bank continues efforts to contain financial damage.

The disclosure also points to a familiar challenge across Nigeria’s financial system: internal control lapses accounted for the bulk of losses, not external cyberattacks. While banks across the country have stepped up investments in cybersecurity infrastructure, insider-related breaches and operational weaknesses continue to drive financial leakages. The figures reinforce this pattern, highlighting governance concerns that persist as digital banking adoption expands.

Internal operations dominate fraud losses at Wema Bank

A closer review of the figures shows varying levels of exposure across digital and transactional channels. Internet fraud accounted for N84.2 million ($61,801), resulting in losses of N10.9 million ($7,980). Mobile banking incidents involved N20.3 million ($14,861), with losses of N750,000 ($548.17). Point-of-sale-related fraud stood at N69.5 million ($50,820), with losses of N929,200 ($680). While these figures illustrate ongoing vulnerabilities across customer-facing platforms, they remained modest compared to internal operational exposures.

ATM and web-based channels recorded relatively smaller volumes, though web-related fraud resulted in N17.9 million ($13,113) in losses from N84.1 million ($61,609) involved, highlighting risks that persist despite tighter digital controls. The largest share of exposure, however, came from internal operations, which accounted for N6.93 billion ($5.08 million) of the total amount involved. These internally related incidents resulted in N817.1 million ($599,044) in losses, underscoring how governance gaps continue to shape fraud outcomes.

Insider risks challenge digital expansion

Over decades, Wema Bank built a reputation as a resilient Nigerian lender, operating Africa’s first fully digital bank, ALAT, while expanding across retail and corporate banking. But 2025 data shows operational controls remain critical alongside technology spending. Internal fraud accounted for 86% of losses, highlighting persistent process gaps and insider risks that exceeded losses linked to digital channels during the period, according to disclosures by the bank.

For Wema Bank, the data signals the need for tighter oversight as fraud patterns evolve within the financial sector. Strengthening internal controls, improving monitoring systems, and reinforcing risk management frameworks have become central to limiting exposure. The bank’s experience mirrors a broader industry reality, where governance and operational controls remain key to safeguarding growth, even as banks deepen their digital ambitions.