EFCC uncovers billion-naira Bank hacks as insider fraud, cyberattacks surge

Nigeria’s banking sector is grappling with an alarming wave of cyberattacks orchestrated by hackers in collusion with insider staff, leading to the loss of billions of naira and raising serious concerns over the security of the country’s financial infrastructure.

The Chairman of the Economic and Financial Crimes Commission (EFCC), Mr. Ola Olukoyede, revealed during a televised interview with TVC News on Sunday that the anti-graft agency is currently investigating the cyberattacks that targeted six major banks across the country.

According to him, insiders working within the banks helped cybercriminals gain unauthorized access to critical internal systems, allowing them to siphon funds and redirect them through various channels including customer accounts, Point-of-Sale (POS) terminals, and crypto wallets.

Olukoyede said the EFCC has already recovered over ₦9 billion for one of the affected banks and about ₦6 billion for another. While he declined to name the institutions involved for reputational reasons, he emphasized that “this level of breach would not have been possible without collaboration from within.”

READ ALSO: EFCC recovers part of funds lost to CBEX crypto ponzi scheme

“These hackers didn’t just break in; they were let in,” Olukoyede stated. “They plug devices into the bank’s network with help from staff. These devices allow criminals—some of whom operate from outside Nigeria—to take control of the bank’s platform remotely. It’s the same level of access a bank account officer has, and it can be used to move billions in seconds.”

Cybersecurity experts have long warned of the increasing vulnerability of Nigeria’s digital financial systems, particularly as electronic transactions surge.

According to the Nigeria Inter-Bank Settlement System (NIBSS), Nigerian banks lost ₦52.26 billion to fraud in 2024, a sharp rise from ₦17.67 billion in 2023, representing a 196% increase over five years.

Despite a decline in the number of reported fraud cases—from 101,624 in 2020 to 70,111 in 2024—the monetary value of the losses skyrocketed, suggesting that each incident is becoming more damaging.

“This trend is not surprising,” says Basil Udom, a Lagos-based cybersecurity consultant. “Financial institutions have expanded their digital offerings rapidly, but internal controls have not kept pace. Insider fraud is the silent killer. Staff are often poorly vetted, underpaid, or compromised. Once a hacker finds an ally inside, the bank’s perimeter defenses become useless.”

The EFCC Chairman noted that the Commission has been careful not to disclose details that could trigger public panic or mass withdrawals. “It’s not the banks’ fault per se, but rather the failure of some of their staff,” Olukoyede stressed, adding that bank executives must “look inwards” to address the root of the breaches.

Dr. Mojisola Ayodele, a financial risk analyst and lecturer at the University of Lagos, says the growing threat of insider fraud could erode public trust in Nigeria’s financial institutions if left unaddressed.

READ ALSO: EFCC hands over 753 recovered housing units from ex-CBN Governor Emefiele to housing ministry

“We are already seeing reduced confidence, especially among retail customers who fear their savings could vanish overnight,” she said. “If systemic breaches continue, the entire digital banking ecosystem could be compromised, which would be catastrophic for a country trying to promote cashless transactions and financial inclusion.”

Analysts are calling for urgent regulatory reforms, including tighter staff vetting, robust cybersecurity training, and more investment in fraud detection systems. There are also calls for the Central Bank of Nigeria (CBN) to issue stiffer penalties for internal breaches and enforce regular audits of IT infrastructure across banks.

“In some countries, the failure to report or act on insider threats is a crime in itself,” says Udom. “Nigeria’s regulatory environment must evolve quickly to match the sophistication of these threats.”

The EFCC is reportedly still pursuing several suspects, including some bank staff and external hackers believed to be operating from overseas, particularly from Eastern Europe and the United States. The agency is also monitoring digital wallets and crypto accounts used to launder the stolen funds.

Olukoyede affirmed that the Commission is committed to tracking and recovering every stolen kobo. “We’re working with international partners. This is a transnational crime, and we will leave no stone unturned.”

With billions lost and the threat landscape expanding, Nigeria’s financial sector finds itself at a crossroads. Without urgent reforms and collaborative action among banks, regulators, and law enforcement, the country risks deeper economic instability triggered not by inflation or debt—but by the invisible hands of cybercriminals exploiting the system from within.