The Rise of POS Fraud in Nigeria: Safety Tips

Point of Sale (POS) terminals have become a cornerstone of Nigeria’s financial ecosystem, offering convenience for cash withdrawals, payments, and transfers across the 33 deposit money banks, including Access Bank, Zenith Bank, GTBank, and Jaiz Bank. However, the widespread adoption of POS systems has fueled a surge in POS fraud, costing Nigerians billions annually. In 2025, as digital transactions grow, understanding POS fraud and implementing safety measures is critical for customers of Nigeria’s 33 banks. This article explores the rise of POS fraud, its common forms, and actionable safety tips to protect your bank account, ensuring secure transactions in Nigeria’s dynamic banking landscape.

Understanding POS Fraud in Nigeria

POS fraud involves fraudulent activities targeting POS terminals, where scammers exploit vulnerabilities to steal card details, funds, or personal information. With over 1.5 million POS terminals deployed across Nigeria by 2024, according to the Nigeria Inter-Bank Settlement System (NIBSS), these devices are a prime target for cybercriminals [NIBSS POS Deployment Report, 2024]. The Central Bank of Nigeria (CBN) reported that POS-related fraud accounted for 25% of banking fraud cases in 2023, with losses exceeding ₦1 billion [CBN Fraud Statistics, 2023].

Why POS Fraud Is Rising

• Widespread POS Adoption: POS terminals are ubiquitous, used by merchants, street vendors, and mobile agents, increasing exposure to fraud.

• Weak Security Practices: Many POS operators lack training on fraud prevention, leaving terminals vulnerable.

• Digital Growth: Nigeria’s 55% internet penetration in 2024 fuels digital transactions, attracting scammers [EFCC Cybercrime Report, 2024].

• Sophisticated Scams: Fraudsters use advanced techniques like skimming devices and fake terminals to bypass security.

Common Types of POS Fraud in Nigeria

POS fraud takes various forms, each exploiting different vulnerabilities. Below are the most prevalent types affecting customers of Nigeria’s 33 banks.

1. Card Skimming

Skimming involves attaching devices to POS terminals to capture card details, such as card numbers and PINs. Fraudsters use this data to create cloned cards or make unauthorized transactions.

• Example: A fake overlay on a POS terminal at a Lagos market captures Access Bank card details.

• Impact: Victims lose funds without realizing their card was compromised.

2. Fake POS Terminals

Scammers deploy counterfeit POS terminals that mimic legitimate devices from banks like UBA or Zenith Bank. These terminals record card information or divert funds.

• Example: A fake GTBank-branded POS terminal charges a customer but transfers funds to a scammer’s account.

• Impact: Customers face unauthorized deductions and delayed refunds.

3. Unauthorized Transactions

Fraudsters trick customers into entering their PIN multiple times or approving transactions under false pretenses, leading to unauthorized withdrawals.

• Example: A POS agent claims a transaction failed, prompting a First Bank customer to retry, only for funds to be deducted twice.

• Impact: Customers lose money due to lack of transaction verification.

4. Phishing via POS

Some scams combine POS fraud with phishing, where fraudsters pose as bank agents and request sensitive details like OTPs or BVN during transactions.

• Example: A scammer at a POS point asks for an Ecobank customer’s OTP, claiming it’s needed to process a payment.

• Impact: Scammers gain access to the customer’s account for further fraud.

Safety Tips for Customers of Nigeria’s 33 Banks

Protecting your bank account from POS fraud requires vigilance and proactive measures. Below are actionable safety tips tailored for customers of Nigeria’s 33 banks, ensuring secure POS transactions.

1. Verify the POS Terminal

Before using a POS terminal, ensure it’s legitimate and affiliated with a recognized bank or payment provider (e.g., Interswitch, NIBSS).

• How to Verify:

  • Check for bank branding (e.g., Zenith Bank, UBA) or provider logos (e.g., Verve, Mastercard).

  • Confirm the terminal’s serial number matches the receipt or operator’s records.

  • Avoid tampered or suspicious-looking devices (e.g., loose keypads or overlays).

• Bank-Specific Tip:

  • Access Bank: Use POS terminals displaying the Access Bank logo or linked to QuickBucks agents.

  • Jaiz Bank: Verify Sharia-compliant POS terminals via www.jaizbankplc.com.

• Why It Works: Legitimate terminals are registered with NIBSS, reducing the risk of skimming [NIBSS POS Guidelines, 2024].

2. Shield Your PIN

Always cover the keypad when entering your PIN to prevent shoulder surfing or hidden cameras capturing your input.

• How to Shield:

  • Use your hand or body to block the keypad view.

  • Ensure no one is standing too close during the transaction.

• Bank-Specific Tip:

  • GTBank: Enable GTBank’s virtual card for POS transactions, which doesn’t require a PIN.

  • Fidelity Bank: Use contactless cards to avoid PIN entry for small transactions.

• Why It Works: Protecting your PIN prevents fraudsters from using stolen card details [CBN Consumer Protection, 2024].

3. Confirm Transaction Details

Before approving a POS transaction, verify the amount and recipient details on the terminal screen.

• How to Confirm:

  • Ensure the amount matches your intended payment.

  • Check the merchant’s name or ID displayed on the terminal.

  • Request a receipt and confirm it matches your bank’s SMS alert.

• Bank-Specific Tip:

  • First Bank: Use FirstMobile to verify POS transactions in real-time.

  • Lotus Bank: Confirm Sharia-compliant merchant details via the Lotus Bank app.

• Why It Works: Verifying details prevents unauthorized or inflated charges [EFCC Fraud Prevention Guide, 2024].

4. Use Trusted POS Operators

Transact only with reputable merchants or registered POS agents to minimize fraud risks.

• How to Identify Trusted Operators:

  • Look for bank-issued agent IDs or NIBSS certification.

  • Use POS services at established businesses (e.g., supermarkets, fuel stations).

  • Avoid roadside or unregistered agents offering unusually low fees.

• Bank-Specific Tip:

  • UBA: Use UBA’s agent banking network, verified via www.ubagroup.com.

  • Optimus Bank: Check for Optimus-branded POS agents at www.optimusbank.com.

• Why It Works: Registered agents adhere to CBN and NIBSS security standards [NIBSS Agent Banking Report, 2024].

5. Monitor Transaction Alerts

Enable SMS and email alerts for all POS transactions to detect unauthorized activities instantly.

• How to Enable:

  • Visit your bank’s mobile app or branch to activate alerts (e.g., Zenith Bank’s 96600# or Access Bank’s app).

  • Ensure your registered phone number is active and secure.

• Bank-Specific Tip:

  • Ecobank: Activate Ecobank’s Omni Lite app for real-time POS alerts.

  • Parallex Bank: Use Parallex’s online banking portal for instant notifications.

• Why It Works: Alerts allow quick detection and reporting of fraudulent transactions [CBN Transaction Monitoring, 2024].

6. Report Suspicious Activity Immediately

If you suspect POS fraud, report it to your bank and relevant authorities promptly.

• How to Report:

  • Bank: Contact your bank’s fraud desk (e.g., Access Bank: 0700-CALL-ACCESS; Zenith Bank: 01-2787000).

  • EFCC: File a report at www.efccnigeria.org or call 0809-332-2330.

  • NIBSS: Use the NIBSS Fraud Reporting Portal at www.nibss-plc.com.ng.

  • CBN: Escalate via www.cbn.gov.ng’s Consumer Complaint Portal.

• Bank-Specific Tip:

  • Stanbic IBTC: Use the Stanbic IBTC app’s “Report Fraud” feature.

  • Premium Trust Bank: Email fraud reports to frauddesk@premiumtrustbank.com.

• Why It Works: Swift reporting enables fund recovery and fraudster tracking [EFCC Annual Report, 2024].

Bank-Specific POS Fraud Prevention Tools

Nigeria’s 33 banks offer unique tools to combat POS fraud. Below are examples for major and niche banks:

• Access Bank: QuickBucks POS agents are NIBSS-registered, ensuring secure transactions.

• Zenith Bank: Z-Mobile app allows real-time POS transaction monitoring.

• GTBank: Virtual cards reduce PIN exposure during POS use.

• First Bank: FirstContact (0700-34778-2668228) offers 24/7 POS fraud reporting.

• UBA: UBA’s POS terminals support contactless payments, minimizing skimming risks.

• Jaiz Bank: Sharia-compliant POS terminals are verified via www.jaizbankplc.com.

• Lotus Bank: Islamic banking POS agents adhere to strict security protocols.

• Optimus Bank: Optimus’ chatbot assists with POS fraud reporting at www.optimusbank.com.

Smaller banks like Parallex, Signature, and Titan Trust Bank also provide SMS alerts and fraud hotlines, ensuring comprehensive protection.

The Role of Nigerian Authorities

The CBN, EFCC, and NIBSS play critical roles in combating POS fraud. The CBN mandates banks to secure POS terminals and resolve fraud complaints within 14 days [CBN Consumer Protection, 2024]. The EFCC’s Cybercrime Unit investigates POS-related scams, recovering millions annually [EFCC Annual Report, 2024]. NIBSS’s POS Management System ensures terminals are registered and monitored [NIBSS, 2024].

How to Leverage Authorities

• CBN: File complaints at www.cbn.gov.ng.

• EFCC: Report fraud at www.efccnigeria.org.

• NIBSS: Use www.nibss-plc.com.ng for POS fraud reporting.

The rise of POS fraud in Nigeria poses a significant threat to customers of the 33 banks, from Access Bank to Titan Trust Bank. By understanding common fraud types like skimming, fake terminals, and unauthorized transactions, and implementing safety tips such as verifying terminals, shielding PINs, and monitoring alerts, you can protect your account. Nigeria’s banks offer robust tools, supported by the CBN, EFCC, and NIBSS, to combat POS fraud. Stay vigilant, transact with trusted operators, and visit crossriverhub for ongoing fraud prevention tips to ensure secure POS transactions in 2025.