OPay Says AI and Real-Time Monitoring Are Helping Strengthen Fraud Protection in Nigeria
According to the Central Bank of Nigeria’s inaugural Fintech Report, transactions processed through the NIBSS Instant Payments (NIP) platform nearly doubled from about 5 billion in 2022 to almost 11 billion in 2024.
The growth highlights Nigeria’s position as one of Africa’s leading real-time payment markets, but it also means financial institutions are handling increasingly large volumes of transactions that require continuous monitoring.
OPay Invests in AI-Powered Risk Controls
OPay says it has spent the past three years developing an Anti-Money Laundering and Counter-Terrorist Financing (AML/CFT) risk-control system that combines artificial intelligence, big data and real-time transaction monitoring.
The fintech says the system is designed to identify suspicious activity as transactions happen rather than waiting for customers to report fraud after money has already been lost.
According to OPay, its framework includes more than 5,000 real-time monitoring and blocking rules and over 10,000 risk-feature profiles used to detect unusual transaction behaviour.
The company says these systems have helped keep its transaction fraud rate below 0.001%.
Tackling Identity Fraud
Identity fraud remains another major challenge as more Nigerians move their financial activities online.
NIBSS data cited in the report shows that digital payment and identity fraud losses fell by 51% to ₦25.85 billion in 2025, compared with ₦52.26 billion in 2024.
The decline has been linked partly to stronger identity verification requirements involving the Bank Verification Number (BVN) and National Identification Number (NIN).
However, fake and stolen identities remain a threat because criminals can use them to create accounts, move illicit funds or conduct fraudulent transactions.
OPay says it has introduced live facial detection technology to identify impersonation attempts and other efforts to bypass identity controls.
The company claims its systems have identified and blocked more than one million fake identities, while its facial liveness technology blocks tens of thousands of attacks daily.
How AI Is Being Used to Detect Suspicious Activity
OPay says its AI models and intelligent-agent technology analyse customer and transaction data to identify abnormal behaviour and potential threats.
When suspicious activity is detected, the company's controls can trigger interventions, including blocking transactions and, where necessary, permanently suspending accounts.
The approach is designed to stop potentially fraudulent activity before it causes financial damage.
For customers, much of this security happens in the background. The goal is for legitimate transactions to remain seamless while suspicious activity receives additional scrutiny.
Compliance Is Becoming More Important
As Nigeria's digital financial ecosystem expands, compliance has become an important part of protecting both consumers and financial institutions.
Know Your Customer (KYC) procedures help verify users' identities, while AML controls can identify unusual transaction patterns and potential financial crime.
However, technology alone cannot eliminate every risk.
Financial institutions also need strong cybersecurity practices, effective governance, trained employees and customers who understand how to protect their accounts.
OPay says its approach to compliance therefore extends beyond technology to include people, processes and governance.
Collaboration Across the Financial Sector
The growing sophistication of financial crime means individual institutions cannot tackle the problem alone.
Greater cooperation between fintech companies, banks, regulators, technology providers and other industry stakeholders can help strengthen Nigeria's overall financial security infrastructure.
Stronger fraud controls could also encourage wider adoption of digital payments. When consumers trust that their money and personal information are protected, they are more likely to use formal digital financial services.
As Nigeria's real-time payment ecosystem continues to grow, the ability to combine convenience with effective fraud prevention will remain critical to maintaining trust in the country's digital financial system.