Nigerian Internet Banking Fraud: A Legal and Cybersecurity Perspective on Emerging Trends and Institutional Vulnerabilities

Abstract

Internet banking has rapidly transformed Nigeria’s financial services landscape, but it has also introduced significant cybersecurity risks and exposed critical legal gaps. The financial industry is now grappling with a steep rise in online fraud, driven by weak regulatory enforcement and evolving digital threats. This paper investigates the key legal and cybersecurity challenges contributing to internet banking fraud in Nigeria. Drawing on secondary data from industry reports, academic studies, and reputable media sources, the study employs trend analysis and thematic synthesis to examine patterns in financial loss and fraud occurrence. The findings reveal a sharp increase in cyberattacks, closely linked to outdated IT infrastructure, insufficient multi-factor authentication, insider threats, and regulatory inconsistencies. Compared to institutions in industrialized countries, Nigerian banks demonstrate limited capacity to prevent and respond to fraud. To address this, the study recommends stronger regulatory oversight, targeted investment in cybersecurity infrastructure, and capacity-building for financial and enforcement institutions. These interventions are vital to strengthening digital security, rebuilding public trust, and ensuring the stability of Nigeria’s growing digital economy.