The world battles with a mind-boggling crisis, losing a colossal $4.7 trillion annually to fraud. This substantial loss accounts for nearly 7% of organisational revenues globally, revealing the pressing demand for global collaboration.
This development underscores the need for urgent action and coordinated efforts to nip financial crime in the bud, as made public by the Standards Organisation of Nigeria (SON).
Fraud Control Measure
The combat against the menace gave birth to ISO 37003: 2025, the world’s first international standard dedicated to fraud control management launched recently.
Stakeholders from the United Kingdom and Nigeria converged to mark what they described as a decisive step in the global fight against fraud.
Speaking at the forum, Professor Oserheimen Osunbor, who chairs SON’s National Technical Committee on Governance of Organisations, highlighted the collaborative origins of the standard.
It was born out of a 2018 plenary session in Sydney, Australia, where minds from around the globe came together to address this pressing issue.
Meeting Minds
“The discussions then revealed a troubling gap in global fraud prevention frameworks,” said Professor Osunbor.
“Despite existing regulations and internal controls, fraud continues to thrive—often supercharged by emerging technologies and artificial intelligence.”
The Sydney meeting prompted the formation of an interim group, a diverse team of international experts and stakeholders, which conducted a global survey that found fraud to be not only widespread but also growing in complexity and cost.
The findings from the Sydney meeting spurred international experts to draft ISO 37003, a comprehensive blueprint for organisations to build robust systems to prevent fraud, detect it early, and respond effectively. This standard has the potential to reduce the impact of fraud on global economies significantly.
Partnership that Works
Demonstrating its unwavering commitment to global governance reforms, Nigeria took a landmark step by co-developing the standard for the first time alongside the UK.
This partnership was not just symbolic but a testament to Nigeria’s proactive role in combating global fraud.
Sorrel Evans of the British High Commission, during the launch, emphasised the human toll of fraud. “This is not just about money,” she said. “Fraud destroys livelihoods, erodes trust, and in some cases, costs lives.”
Staggering Statistics
Findings revealed shocking statistics, showing that 76 million people fall victim to fraud each year, with total losses amounting to $4.7 trillion.
The survey further revealed that Nigeria’s financial sector alone recorded N52.26 billion in fraud-related losses in 2024, a nearly 300% increase from the previous year.
Dr Ifeanyi Okeke, the Director-General of SON, described ISO 37003 as a strategic tool for promoting transparency and good governance, vowing that SON would lead its implementation through nationwide awareness campaigns, comprehensive training programmes for all stakeholders, and a rigorous certification scheme to ensure compliance.
However, pundits think that the success of ISO 37003 will depend on how quickly governments and private institutions embrace its guidelines.
Tracing Past Financial Fraud
Nigeria has witnessed numerous high-profile fraud cases, highlighting the extent of financial crime in the country, which have resulted in stories of betrayal, collapse, and personal loss.
TheDiggerNews recalls that in 2023, a fintech startup based in Lagos collapsed when the chief financial officer of the organisation siphoned $1.2 billion through falsified vendor payments.
The fraud could not be detected for months, resulting in mass layoffs and the shutdown of operations. One former employee, who did not want his name in print, said, “We were building something meaningful. Overnight, it was gone.”
While the private sector has been severely afflicted by the crisis, the public sector is not left unscathed, as the 2022 pension fraud scandal involving the now-defunct Pension Reform Task Team shook national confidence.
Many pensioners were devastated, while some died without receiving their benefits when they discovered that billions of naira meant for them were diverted through ghost accounts and forged documents.
Every day, Nigerians have also felt the sting of fraud in the banking sector. Customers across multiple states lost millions of dollars due to the surge in insider-enabled ATM fraud in 2024.
In Ibadan, one victim recalled how she parted with her entire savings after a cloned ATM card was used to drain her account.
“The bank said it was my fault for sharing my PIN. But I never did,” she said tearfully.
These cases paint a pitiable picture of how people were swindled, not just in terms of lost money but also in broken trust, shattered livelihoods, and emotional trauma.
Setting Precedent
Fraud, being prevalent in Nigeria, is strangulating both economic stability and public trust.
The country’s leadership in the ISO 37003 initiative could set a precedent for others to follow, knowing that the situation is critical.