PalmPay, a digital bank, has warned customers against clicking suspicious links and authorising unauthorised transactions, urging them to verify customer support channels to protect their accounts from fraud. The financial technology company issued the advisory following Customer Service Week, highlighting risks posed by fraudsters impersonating customer service representatives to obtain sensitive information and deceive users. Impersonation scams can occur through phone calls and messaging platforms, with fraudsters posing as representatives of financial institutions to offer fake rewards, promise refunds, or request account details.
The warning reflects ongoing fraud concerns in Nigeria's banking and payments industry. The Nigeria Inter-Bank Settlement System reported that financial institutions lost N25.85bn to fraud in 2025, down from N52.26bn in 2024. Social engineering accounted for 47 per cent of fraud volume and was associated with N17.84bn in losses in 2025, according to figures presented by NIBSS at the Nigeria Electronic Fraud Forum in January 2026.
PalmPay advised customers never to disclose one-time passwords, personal identification numbers, passwords, or verification codes to anyone, and to independently verify requests for sensitive information before responding. The company also recommended confirming the authenticity of social media accounts and other communications claiming to represent it before sharing personal or financial information. For merchants, PalmPay suggested checking payments through official transaction records rather than relying solely on screenshots or messages as proof of payment.
Customers who notice unfamiliar transactions or suspect fraudulent activity should seek assistance through official customer support channels, PalmPay said. The company encouraged users to familiarise themselves with security features in the PalmPay app's Security Center, keep account credentials confidential, and report suspicious activity promptly.