Fake bank alerts: How Nigerian merchants can spot fraudulent payment notifications

Electronic payment fraud in Nigeria dropped sharply in 2025, but fake bank alert scams still threaten traders and Point of Sale (PoS) operators. According to the Nigeria Inter-Bank Settlement System (NIBSS), banks and other financial institutions lost N25.85 billion to digital payment fraud in 2025, down 51 per cent from N52.26 billion recorded in 2024.

Reported cases also fell from 70,111 in 2024 to about 67,518 in 2025. NIBSS, however, said social engineering remained the most common fraud technique, with insider abuse, SIM-swap fraud, account compromise and phishing continuing to evolve.

How fake bank alerts work

Fake bank alerts involve fraudsters convincing a merchant that a payment has been made when no money has actually entered the recipient's account. Criminals use applications designed to generate fabricated transaction notifications. These apps can create messages containing the supposed sender's name, account number, transaction amount, reference number and date.

Fraudsters may also show victims a fake transaction receipt, screenshot or payment-success page designed to look like the interface of a legitimate financial institution. The scammer then insists that the transfer has been completed and pressures the merchant to release goods or provide a service. For PoS operators and traders, the danger is significant because the victim may only discover the fraud after the customer has left with the goods.

What the CBN says

The Central Bank of Nigeria (CBN) warns that phishing and social engineering scams can involve fraudsters pretending to be legitimate organisations or trusted individuals to obtain confidential information. The most reliable way to identify a fake payment is to check the actual account receiving the money. A text message, screenshot, email, WhatsApp notification or receipt displayed by a customer should not be treated as proof that a transaction has been completed.

Merchants should log into their banking application or use another trusted channel to confirm that the money has actually been credited. If the expected amount is not reflected in the available balance or transaction history, the safest decision is to withhold the goods or service until the payment is confirmed.

How to protect your business

Never rely solely on an SMS notification. Open your official banking app, check your account balance and review the transaction history before confirming receipt. For merchants, the simple rule should be: No credit in your account, no release of goods.

Do not trust screenshots or payment receipts. Fraudsters can manipulate screenshots and create convincing-looking transaction receipts. A receipt displayed on the customer's phone does not prove that the money has reached your account. Always verify the transaction independently through your own banking channel.

Be careful with links and messages. The CBN advises consumers not to click suspicious links and to verify the identity of anyone requesting sensitive financial information. Do not provide your PIN, password, one-time password (OTP), card details or other confidential information in response to an unsolicited message.

Do not release goods under pressure. Scammers create urgency by claiming they are in a hurry, that the transfer has already been completed or that the bank's system is responsible for the delay. If the money has not appeared in the account, wait.

If a payment appears unusual, contact the bank through its official customer-service channels. Do not use a phone number or link supplied by the suspected scammer. The CBN advises customers to contact their financial institution immediately if their banking information has been compromised or they suspect fraud.

For Nigerian businesses, the decline in fraud value is welcome, but the persistence of social engineering means merchants must keep verifying every payment independently before handing over goods or services.