The Economic and Financial Crimes Commission (EFCC) has warned that Nigeria’s fintech and Point-of-Sale (POS) networks are structurally vulnerable, with weak verification systems and inadequate oversight creating opportunities for criminal exploitation.
At the resumed investigative session organized by the House Ad-hoc Committee on Crypto currency and POS Operations, Dein Whyte, Cybercrime Section Supervisor at the EFCC, said poor know your customer (KYC) compliance, unverified agents, and compromised system architecture enable criminals to channel illicit funds through POS operators.
He stressed the need for stronger monitoring of core banking applications and fintech infrastructure to protect users and aid investigations.The National President of the Association of Digital Payment and POS Operators of Nigeria (ADPPON), Paul Okafor, said fraud losses across digital channels rose from N17.67 billion in 2023 to N52.26 billion in 2024, with POS platforms accounting for more than 26 percent of cases.
He described unregulated POS operations as national security risks. Dotun Adekunle, Chief Operating Officer of OPay, argued that banks, not fintechs, are often the source of system weaknesses, noting that enhanced anti-fraud tools have reduced fintechs’ exposure to illicit funds.
Earlier, Chairman of the committee, Hon. Olufemi Bamisile, said regulatory gaps, offshore data storage, and unlicensed crypto services threaten the digital economy, adding that the committee will recommend legislation to strengthen oversight and consumer protection.
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