How to Recover Money Lost Through Bank Fraud in Nigeria

You may discover that money has been transferred from your account without your authorisation, sent to an unknown account, withdrawn through an ATM, or used for an online transaction you did not make.

The immediate question is usually:

Can the money be recovered?

In many cases, there are steps you can take to pursue recovery. However, recovery is not automatic, and the appropriate approach depends on how the fraud occurred, how quickly it was reported, whether the recipient can be identified and the evidence available.

The most important rule is simple:

Act immediately.

The Central Bank of Nigeria advises customers who suspect fraud or a compromise to contact their financial institution immediately and report the matter to the appropriate authorities.

What Is Bank Fraud?

Bank fraud generally involves the use of deception, unauthorised access or other fraudulent means to obtain money or financial benefits through a bank or other financial institution.

Examples include:

• Unauthorised transfers from a bank account.
• Fraudulent ATM withdrawals.
• Unauthorised card transactions.
• Mobile banking fraud.
• Internet banking fraud.
• Phishing scams.
• Social engineering scams.
• SIM-related compromise.
• Fraudulent direct debits.
• Fraudulent use of banking credentials.
• Deception that causes a customer to transfer money to a fraudster.

The legal and recovery options differ depending on the particular circumstances.

Can Money Lost Through Bank Fraud Be Recovered?

Yes, money lost through bank fraud can be recovered in appropriate circumstances.

Recovery can occur through several routes, depending on the facts.

These include:

1. Immediate intervention by the bank.
2. Internal bank complaints and investigation.
3. Regulatory intervention through the CBN.
4. Criminal investigation by appropriate law-enforcement agencies.
5. Recovery from the recipient of the funds.
6. Civil proceedings.
7. Appropriate court orders to preserve or recover funds.

However, there is no guarantee that every fraudulent transaction will be reversed.

The speed with which the victim acts can be particularly important.

What Should You Do Immediately After Discovering the Fraud?

1. Contact Your Bank Immediately

Do not wait until the next business day if you discover the fraud outside normal banking hours.

Use the bank’s official emergency or fraud-reporting channels and inform the bank that the transaction is disputed.

Ask the bank to:

• Restrict further transactions where necessary.
• Secure the account.
• Investigate the transaction.
• Attempt to recall or recover the funds where possible.
• Place appropriate restrictions on the recipient account where the applicable process permits.
• Give you a complaint or tracking reference.

The CBN specifically advises customers who suspect fraud to contact their financial institution immediately.

2. Change Your Banking Credentials

If your account or banking credentials have been compromised, change your relevant passwords and security credentials immediately.

You should also secure the device used for mobile or internet banking.

Do not continue using compromised credentials simply because the fraudulent transaction has already occurred.

3. Preserve the Evidence

Do not delete transaction alerts, SMS messages, emails or screenshots.

Preserve:

• Bank statements.
• Transaction alerts.
• Transaction reference numbers.
• Screenshots.
• Emails.
• SMS messages.
• WhatsApp or other communications with the fraudster.
• Recipient account details.
• The bank’s correspondence.
• Your complaint reference.
• Any police or EFCC report.
• Evidence of the amount lost.

This evidence can become important if the matter proceeds to regulatory investigation or litigation.

Can the Bank Reverse the Transaction?

It can, depending on the circumstances and the stage at which the transaction is reported.

The bank can investigate the transaction and take appropriate steps within the banking system where recovery or reversal is possible.

This is why immediate reporting is important.

However, you should not assume that contacting the bank automatically guarantees a refund.

The bank will investigate matters such as how the transaction was initiated, whether it was authenticated, whether the customer’s credentials were compromised and whether the transaction can be traced.

What If the Money Has Already Been Transferred to Another Account?

This does not necessarily mean that recovery is impossible.

The recipient account details can provide an important starting point for tracing the funds.

Depending on the circumstances, the relevant financial institutions and authorities can investigate the transaction trail.

If the funds remain identifiable or traceable, appropriate recovery measures can be considered.

Where the recipient has transferred the money to another account, the investigation may become more complicated, but that does not necessarily end the possibility of recovery.

Can the Recipient’s Bank Freeze the Money?

The recipient’s bank can take appropriate action within its regulatory and operational framework when notified of a suspected fraudulent transaction.

However, a victim should not assume that merely reporting the matter guarantees that the recipient’s account will be frozen.

The bank may need appropriate documentation, internal verification, instructions from competent authorities or other lawful grounds before taking particular action.

This is one reason why prompt reporting is important.

What If the Fraudster Has Already Withdrawn the Money?

Recovery can become more difficult once the money has been withdrawn.

However, withdrawal does not necessarily make recovery impossible.

The investigation can consider:

• Who withdrew the money.
• Where the withdrawal occurred.
• The account into which the money was initially transferred.
• Whether CCTV or other records exist.
• Whether the funds were transferred elsewhere.
• Whether the recipient can be identified.
• Whether the recipient has identifiable assets.

The available evidence will determine the appropriate recovery strategy.

Should You Report Bank Fraud to the Police?

Yes, where the circumstances disclose suspected criminal conduct, you should make an appropriate report to law enforcement.

The CBN advises victims of fraud to report suspected fraud and scams to relevant authorities, including the Nigerian Police Force and the EFCC.

A report can assist with investigation and identification of the persons involved.

However, a criminal complaint and civil recovery are not the same thing.

Reporting the fraud does not automatically put the money back into your account.

Where recovery is required, additional legal steps may be necessary.

Can the EFCC Help Recover Money Lost Through Fraud?

The EFCC is one of the agencies that can investigate economic and financial crimes within its statutory mandate.

Where the circumstances fall within the agency’s jurisdiction, a victim can make an appropriate report and provide the available evidence.

However, victims should not assume that every bank-fraud complaint automatically becomes an EFCC matter or that reporting to the EFCC guarantees recovery.

The nature of the fraud, amount involved, evidence and jurisdiction will determine the appropriate law-enforcement route.

Can You Report the Matter to the CBN?

Yes, but the CBN complaints process is primarily directed at complaints against financial institutions regulated by the CBN.

The CBN’s published procedure requires customers to first complain to the financial institution. Where the complaint remains unresolved within the applicable timeline, the customer can escalate it to the CBN’s Consumer Protection Department.

The CBN also requires the complainant to provide relevant information and supporting documents and warns customers not to include sensitive information such as PINs and passwords in their complaint.

How Long Should You Wait Before Escalating to the CBN?

The CBN’s current published materials state that a customer should first lodge the complaint with the financial institution and obtain a tracking number.

The CBN’s 2025 consumer-protection publication states that the bank should issue a unique identification number and acknowledge the complaint within 24 hours. It further states that where the complaint is not responded to or addressed within two weeks, the customer has the right to escalate to the CBN.

Therefore, do not skip the bank’s internal complaint process before escalating the matter to the CBN.

What Should You Include in Your Complaint?

Your complaint should clearly state:

• Your name and contact details.
• The name of the financial institution.
• The date and time of the transaction.
• The amount involved.
• The nature of the transaction.
• The transaction reference.
• What happened.
• When you discovered the fraud.
• When you reported it to the bank.
• The bank’s response, if any.
• What you want the bank to do.

Attach relevant supporting documents.

The CBN’s guidance similarly requires complaints to contain the relevant transaction history, amount claimed and supporting documents.

Do not include your PIN, password or other sensitive security credentials in the complaint.

What If the Bank Says You Authorised the Transaction?

This is a common problem.

The bank may argue that the transaction was authorised because:

• Your PIN was used.
• An OTP was entered.
• Your mobile banking application was used.
• Your registered device initiated the transaction.
• Your card details were correctly entered.

However, authentication is not necessarily the end of the legal inquiry.

The circumstances surrounding the transaction must be examined.

For example, there is a significant difference between:

A. A fraudster accessing your account without your knowledge; and

B. A fraudster deceiving you into providing an OTP or personally initiating a transfer.

The customer’s conduct, the bank’s systems and the circumstances of the transaction can all become relevant.

What If You Were Deceived Into Transferring the Money Yourself?

This is commonly known as social engineering.

For example, someone may impersonate a bank employee and tell you that your account has been compromised.

They may then persuade you to:

• Provide an OTP.
• Provide your PIN.
• Click a malicious link.
• Install an application.
• Transfer money to another account.

Although the customer technically initiated the transfer, the transaction may still have resulted from fraud.

The legal analysis therefore requires examination of the particular circumstances rather than simply asking whether the customer pressed the “send” button.

Can You Recover the Money Directly From the Fraudster?

Potentially, yes.

Where the fraudster or recipient can be identified, civil proceedings can be considered.

The objective may include obtaining an order requiring repayment of the money and, where appropriate, other reliefs available under the law.

The fact that the person received the money through a fraudulent transaction does not give that person a lawful entitlement to keep it.

However, practical recovery also depends on whether the person can be identified and whether there are assets from which a judgment can be satisfied.

What If You Only Know the Recipient’s Account Number?

That information can still be valuable.

The recipient’s account number, account name and transaction reference can assist in tracing the transaction.

A lawyer can advise on the appropriate legal mechanism for obtaining further information or pursuing recovery where the recipient’s identity is not fully known.

You should not attempt to obtain private banking information through unlawful means.

Can You Sue the Person Who Received the Money?

Where the evidence supports a claim, yes.

The recipient of fraudulently obtained money can potentially be pursued through civil proceedings.

The appropriate cause of action and relief will depend on the facts.

The bank is not automatically responsible simply because the fraudulent funds passed through its system.

Similarly, identifying the recipient does not automatically eliminate every possible claim against the bank.

The responsibility of each relevant party must be separately examined.

Can You Sue the Bank?

Potentially.

A bank may be liable where the facts establish a breach of a legal, contractual or regulatory duty that caused the customer’s loss.

However, an unauthorised transaction does not automatically mean that the bank is liable.

The court may consider:

• How the transaction was initiated.
• Whether the bank complied with applicable requirements.
• Whether the customer’s credentials were compromised.
• Whether the customer disclosed security information.
• Whether the bank detected suspicious activity.
• When the customer reported the transaction.
• What the bank did after receiving the complaint.

This is why the evidence should be reviewed before commencing proceedings.

For a detailed discussion, see our article Can You Sue a Bank for an Unauthorised Transaction in Nigeria?

Can a Court Help You Recover the Money?

Yes.

Where the facts establish a viable claim, court proceedings can be used to pursue recovery.

Depending on the circumstances, the relief sought can include:

• Recovery of the principal sum.
• Interest where legally recoverable.
• Damages where legally sustainable.
• Declaratory relief.
• Appropriate preservation or interim orders.
• Other reliefs arising from the particular cause of action.

The appropriate relief depends on the facts and the legal basis of the claim.

Can You Obtain an Order to Preserve the Money or Assets?

In appropriate circumstances, urgent court intervention can be considered where there is a genuine risk that funds or assets connected with the claim will be dissipated.

The precise application and requirements depend on the facts and applicable procedural law.

This is one reason victims of substantial fraud should obtain legal advice promptly rather than waiting until the suspected fraudster has disposed of all identifiable assets.

Does Reporting the Fraud Guarantee Recovery?

No.

Reporting the fraud is important, but it does not guarantee that the money will be recovered.

Recovery depends on factors such as:

• How quickly the fraud was reported.
• Whether the money can be traced.
• Whether the recipient can be identified.
• Whether the funds remain available.
• Whether the recipient has dissipated the money.
• Whether evidence is available.
• Whether a bank or other institution bears legal responsibility.
• Whether court intervention is required.

The sooner the matter is addressed, the more recovery options are likely to remain available.

What If the Bank Refuses to Refund You?

If the bank rejects your request for a refund, do not simply abandon the matter.

First, obtain the bank’s response in writing.

Then consider the appropriate escalation route.

As discussed in our article What to Do When a Bank Refuses to Reverse an Unauthorised Transaction in Nigeria, you can pursue the bank’s internal complaint process and, where appropriate, escalate the matter to the CBN.

The CBN recognises customers’ right to redress and states that dissatisfied customers can seek review through the bank, the CBN or the courts.

Should You Sue Immediately?

Not necessarily.

Litigation should usually follow an assessment of the facts and available remedies.

In an appropriate case, the sequence can be:

Report the fraud → secure the account → preserve evidence → complain to the bank → investigate the transaction → escalate where appropriate → identify the responsible parties → obtain legal advice → commence proceedings where necessary.

There are situations, particularly where there is a risk of dissipation of funds or assets, where urgent legal action should be considered without unnecessary delay.

What Evidence Should You Give Your Lawyer?

Provide your lawyer with the complete evidence rather than only the documents you believe support your position.

This should include:

• Bank statements.
• Transaction alerts.
• Transaction references.
• Screenshots.
• Recipient details.
• Your correspondence with the bank.
• The bank’s responses.
• Your complaint reference.
• Communications with the fraudster.
• Police or EFCC reports.
• Evidence of your account-security practices.
• Any relevant documents or electronic records.

Tell your lawyer exactly what happened, including whether you disclosed an OTP, PIN or password.

A lawyer can only properly assess your case if the facts are complete.

How Long Does Money Recovery Take?

There is no universal timeframe.

A straightforward reversal may occur relatively quickly.

A regulatory complaint can take longer.

Civil proceedings can take substantially longer depending on:

• The court.
• The parties involved.
• The evidence.
• Whether interlocutory applications are filed.
• Whether the judgment is appealed.
• Whether enforcement proceedings become necessary.

The important point is that recovery should be initiated as soon as the fraud is discovered.

Common Mistakes Victims Make

Waiting before reporting the fraud

This can make tracing the funds more difficult.

Relying only on telephone calls

Make formal written complaints and keep the evidence.

Deleting messages

Those messages may become important evidence.

Assuming the bank must automatically refund the money

Bank liability depends on the circumstances.

Assuming reporting to the police guarantees recovery

Criminal investigation and civil recovery are different processes.

Pursuing the wrong defendant

The bank, recipient and other persons involved may have different legal responsibilities.

Publicly accusing people without evidence

Keep allegations within appropriate legal and investigative channels.

Trying to recover the money through threats or self-help

Use lawful mechanisms for recovery.

How Lexforte Attorneys Can Help

Lexforte Attorneys assists individuals and businesses involved in banking disputes, financial fraud and money recovery.

We can assist with:

• Unauthorised transaction disputes.
• Bank fraud matters.
• Banking and financial disputes.
• Recovery of funds lost through fraud.
• Complaints to financial institutions.
• CBN regulatory complaints.
• Legal correspondence with banks.
• Civil recovery proceedings.
• Applications for appropriate interim or preservation orders.
• Enforcement of money judgments.

Where substantial funds are involved, early legal advice can help determine whether the appropriate strategy is negotiation, regulatory escalation, civil proceedings or a combination of these approaches.

Conclusion

Money lost through bank fraud is not necessarily lost forever.

The appropriate recovery strategy depends on the circumstances of the fraud, the speed of reporting, the evidence available, the identity of the recipient and the legal responsibilities of the parties involved.

If you discover a fraudulent transaction, contact your bank immediately, secure your account, preserve your evidence and make a formal complaint.

If the bank fails to resolve the complaint, the CBN provides a complaints-escalation mechanism for financial institutions within its regulatory purview.

Where the money cannot be recovered through the banking or regulatory process, legal proceedings against the appropriate parties can be considered.

The key is to act quickly and use the appropriate recovery mechanism rather than assuming that the bank’s first response is the end of the matter.

If you have lost money through bank fraud, contact Lexforte Attorneys for professional advice on recovering your funds and pursuing the appropriate legal remedies.