By Kingsley Samuel
As cyber threats become increasingly sophisticated, digital payments platform PalmPay has called for a holistic, artificial intelligence-driven approach to cybersecurity to safeguard Nigeria’s growing fintech ecosystem.
The company said rising cases of account takeover, data breaches and digital fraud require a broader security framework that combines intelligence, automation, identity verification and industry-wide collaboration.
According to industry reports cited by PalmPay, account takeover remains one of the leading fraud challenges in Nigeria, contributing significantly to banking-related losses reported by the Nigeria Inter-Bank Settlement System, NIBSS.
The company noted that between early 2023 and mid-2025, the financial sector lost hundreds of billions of naira to digital fraud, while more than 281,500 user accounts were exposed through breaches and leaks in the first quarter of the year.
PalmPay said it has responded by deploying a multi-layered cybersecurity architecture designed to anticipate, detect and mitigate threats before they escalate.
The framework integrates artificial intelligence-powered fraud monitoring, continuous risk assessment, behavioural analysis and multi-factor authentication to strengthen account security.
The company highlighted biometric and facial verification as critical tools in combating account takeover attempts, which often rely on stolen credentials.
By combining facial verification with PIN and One-Time Password, OTP, authentication, PalmPay said it has created multiple layers of protection aimed at ensuring that only legitimate account owners gain access to their accounts.
PalmPay’s Anti-Fraud Manager, Omoruyi Aiyudu, said effective fraud prevention now requires a shift from isolated security controls to a connected and intelligence-driven ecosystem.”
Fraud prevention today requires a shift from isolated security controls to a connected, intelligence-driven security ecosystem.
At PalmPay, we leverage AI-driven fraud detection, behavioural analytics and multi-layered authentication to identify and mitigate risks in real time,” Aiyudu said.
He added that the company would continue investing in advanced technologies to enhance account security and strengthen trust in digital financial services.
Beyond technology, PalmPay stressed the importance of collaboration across the financial ecosystem, noting that cybersecurity cannot be addressed through internal controls alone.
The company said it works closely with regulators, law enforcement agencies and other stakeholders to improve cybercrime detection and response.
It cited its collaboration with the Nigerian Cybersecurity Unit of the Nigeria Police Force, including support through the provision of advanced equipment to enhance fraud detection and investigation capabilities.
PalmPay also disclosed that it recently partnered with the Nigerian Data Protection Commission, NDPC, to conduct specialised data protection training aimed at improving internal governance and compliance with the Nigeria Data Protection Act, NDPA, 2023.
The company further emphasised the role of consumer awareness in reducing cyber risks, stating that informed user behaviour remains one of the strongest defences against fraud.
It maintained that as cyber threats continue to evolve, artificial intelligence-powered security solutions are becoming essential for protecting customers, strengthening trust and supporting the growth of Nigeria’s digital economy.
