Study of the Prevalence of Mobile Banking Fraud Among Bank Customers in Kano State

Mobile banking fraud represents a growing threat to financial inclusion gains in northern Nigeria, where rapid smartphone adoption has outpaced consumer digital security literacy. This study assessed the prevalence and patterns of mobile banking fraud victimisation among bank customers in Kano Municipal and Nassarawa Local Government Areas, Kano State, North West Nigeria. A cross-sectional descriptive survey was conducted among 250 mobile banking users recruited from three commercial bank branches. A structured questionnaire assessed fraud victimisation history, fraud type experienced, financial loss estimates, reporting behaviour, and fraud prevention knowledge. Results showed that 42.8 percent of respondents had experienced at least one mobile banking fraud incident in the preceding 12 months. SIM swap fraud was the most prevalent type (38.3 percent of all incidents), followed by social engineering impersonation of bank staff (31.8 percent) and OTP theft through deceptive calls (24.3 percent). Mean financial loss per incident was estimated at 47,600 naira. Only 31.8 percent of victims reported incidents to their bank. Low awareness of two-factor authentication was identified in 67.2 percent of respondents. The study concludes that mobile banking fraud victimisation is high in the study area, driven primarily by social engineering exploiting consumer awareness gaps. Recommendations include mandatory bank customer digital security literacy training, enhanced real-time transaction monitoring by banks, and a NDIC-backed mobile banking fraud awareness campaign targeting northern Nigerian states.

Keywords: mobile banking fraud, SIM swap, social engineering, Kano State, financial cybercrime