Nigeria: Report – 59 Percent of Nigerian E-Banking Customers Have Been Victim to Fraud

Nume Ekeghe

A survey carried out by Agusto&Co has revealed that 59 per cent of bank customers sampled indicated that they have fallen victim to fraud.

According to the survey, 41 per cent said their accounts hadn’t been compromised, “however, the remaining had been victims through phishing emails, data breaches, unauthorised access to accounts through USSD, and others.”

Agusto&Co in its ‘2022 Consumer Digital Banking Satisfaction Index’ also called for investment in cyber security and awareness to avert bank customers falling victim to breaches in their accounts.

“Approximately 59 per cent of survey respondents have been fraud victims on the digital platforms of their respective banks. This suggests that more investments in cyber protection by Banks is required to combat the growing exposure to cyber security risks on digital platforms, “it stated.

It noted that a large percentage of the survey respondents are satisfied with the level of security provided on their respective digital platforms.

“Based on the digital banking satisfaction index’s parameters, Access Bank Plc recorded the highest user experience score of 94.6 underpinned by comparably higher estimated transaction success rates, ease of navigation, and awareness and active usage of services provided. United Bank for Africa Plc (UBA) scored the second highest (94.4) while Guaranty Trust Bank Limited (GTBank) was third with a user experience score of 91.4. Perceived security strength, range of platforms known, and ease of navigation on the platforms were strong ranking factors amongst respondents. Zenith Bank Plc recorded the highest percentage of respondents who perceive their bank’s respective digital platforms to be secure. UBA and Access Bank were the second and third highest respectively, “the survey showed.

The survey also stated that approximately 70 per cent of the survey respondents indicated that they are not willing to switch to another bank’s digital platform.

“This is less than the 82% of respondents recorded in our 2021 survey. Customers cited pain points to be high service fees, poor customer service, frequent downtime on the digital platform and as the main reasons they were willing to make a switch to another bank’s digital banking platform.

“We expect the increasing competition in the digital space from Fintechs and Neo-banks to further spur more innovation and expanded service offerings by banks. Also, given the macroeconomic headwinds, which have reduced the appetite for lending to some extent, we expect more emphasis on non-interest income from electronic banking channels to sustain profitability. Overall, we expect more digital transformation as banks compete to grow and retain market share,” it stated.

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