Senator Oshiomhole Exposes Fintech Fraud on Moniepoint

Abuja, Nigeria – In a dramatic revelation during a Senate committee hearing in Abuja, Senator Adams Oshiomhole has raised serious concerns about the vulnerability of fintech platforms to cyber fraud, recounting a personal ordeal where hackers used his compromised phone to siphon millions from unsuspecting victims via Moniepoint and similar services.

The former Edo State governor, speaking at the Senate Committee on Banking, Insurance and Other Financial Institutions’ investigative hearing into Ponzi schemes and financial fraud, detailed how he fell victim to a social engineering scam. “As somebody that is analogue, I was so gullible,” Oshiomhole admitted. “Somebody called me and told me to give him some numbers. I gave him the numbers and suddenly I could no longer access my WhatsApp platform.”

According to the senator, the fraudster exploited his hacked account to solicit funds from his contacts, with transfers allegedly funneled through fintech accounts rather than traditional banks. “Before the reversal, the man that hacked my telephone had already succeeded in collecting millions from people,” he lamented, emphasizing that platforms like Moniepoint and OPay are frequently implicated in such incidents. “From experience and from what other people have told us, such people normally use OPay and Moniepoint,” Oshiomhole added.

The hearing, which also probed the N1.3 trillion Crypto Bullion Exchange (CBEX) Ponzi scheme affecting over 1,200 victims, saw lawmakers grilling Moniepoint’s Managing Director, Babatunde Olofin, on why fraudsters seem to prefer fintechs over conventional banks.

“My question is: what is the attraction for using Moniepoint and OPay rather than conventional banks? Is it because it is difficult to see you physically?” Oshiomhole queried, suggesting that the lack of physical branches and easier accessibility might be enabling criminal activities.

Olofin, in response, attributed part of the issue to identity misuse, noting that some Nigerians sell their account details to fraudsters in exchange for small incentives like ‘palliatives.‘ He assured the committee of Moniepoint’s commitment to enhancing security, including plans to open 10 physical branches by the end of 2026 and expand nationwide by 2028.

This incident comes amid growing worries over digital financial crimes in Nigeria, where fintech platforms have exploded in popularity, serving millions with services like mobile payments and agency banking. However, the sector’s rapid growth has outpaced regulatory frameworks, leading to increased cases of identity theft, phishing, and ransomware.

Recent statistics from the Nigeria Inter-Bank Settlement System (NIBSS) reveal that digital payment fraud losses dropped 51% to N25.85 billion in 2025 from N52.26 billion in 2024, with Lagos accounting for 63% of incidents. Despite this decline, experts warn that organised fraud networks are evolving faster than defenses. A Central Bank of Nigeria (CBN) survey shows that 87.5% of fintechs now use AI for fraud detection, underscoring the severity of the threat.

Industry stakeholders, including the Economic and Financial Crimes Commission (EFCC) and the Nigerian Communications Commission (NCC), clashed during the hearing over regulatory jurisdiction, highlighting the need for clearer oversight. Oshiomhole and other lawmakers, including Senator Victor Umeh, called for stricter CBN supervision and amendments to the Banks and Other Financial Institutions Act (BOFIA) to hold fintechs accountable.

The senator’s comments have sparked widespread debate on social media, with users sharing similar experiences and demanding better user verification and cybersecurity education. As Nigeria’s fintech ecosystem continues to thrive, incidents like this underscore the urgent need for balanced innovation and robust protection against cyber threats.