PalmPay Advises Nigerians to Strengthen Security of Their Digital Wallets

PalmPay has issued a renewed call urging Nigerians to take stronger precautions in protecting their digital accounts, as the rate of online fraud and identity theft continues to rise across the country’s financial technology ecosystem. The mobile payment company said the safety of customers’ digital wallets remains a shared responsibility between users and service providers, especially as more transactions move online and fraudsters adopt increasingly sophisticated methods.

According to the company, many of the fraud cases reported in the digital payment space could have been prevented if users avoided disclosing sensitive information such as passwords, PINs and one-time passwords. PalmPay noted that while it deploys advanced security systems to monitor and block suspicious activity, criminals often target customers directly through social engineering techniques designed to trick them into surrendering confidential details. The firm stressed that scammers frequently pose as bank or fintech representatives, calling or sending messages to unsuspecting users to obtain critical information needed to access their accounts.

PalmPay explained that it has invested heavily in building a secure digital environment through technology such as biometric verification, device binding, behavioural monitoring and artificial intelligence systems that analyse unusual account activity. These tools, the company said, help detect fraudulent logins, irregular transfers and sudden changes in user patterns. However, the company maintained that these measures work best when customers complement them by adopting responsible digital habits.

The company’s renewed awareness drive comes at a time when digital transaction volumes have surged, with millions of Nigerians increasingly relying on mobile wallets for day-to-day payments, transfers, bills, savings and other financial services. PalmPay said the convenience of digital banking makes it essential for users to stay informed about emerging threats so they do not unknowingly become victims. It advised customers to regularly update their apps, enable all available security features and avoid using easily guessable passwords or storing such details on their phones.

PalmPay also highlighted its ongoing partnerships with security agencies and regulators aimed at curbing fraud across Nigeria’s digital finance space. The firm has been working closely with cybersecurity units of law-enforcement agencies, providing technical support, sharing intelligence and participating in awareness campaigns designed to educate the public about common fraud tactics. The company noted that collaboration between fintech operators and government institutions is key to building a safer financial ecosystem, especially as criminals increasingly target digital platforms because of the growing shift away from cash-based transactions.

As part of its cybersecurity education initiatives, PalmPay has been engaging communities, students and young professionals through sensitisation programmes that teach the basics of safe online behaviour. These campaigns, which include workshops, social media outreach and in-app notifications, emphasise the importance of verifying messages, recognising phishing attempts, avoiding third-party login requests and reporting suspicious activity immediately. The company said many people fall victim to scams simply because they are not aware of the tricks fraudsters use.

PalmPay reiterated that it does not request sensitive information through phone calls, SMS or social media messages. It warned users to be cautious of individuals claiming to be customer service agents and asking for personal details to “resolve account issues.” According to the company, any message urging customers to disclose OTPs or grant remote access to their phones should be treated as a red flag. Instead, affected users should contact PalmPay directly through official channels to confirm the authenticity of any communication.

In addition to education and security technology, PalmPay said it has put in place measures to protect customers financially. These include systems that automatically freeze suspicious accounts, tools that allow users to lock their wallets when their devices are lost, and dedicated support teams that respond swiftly to fraud-related complaints. The company emphasised that quick reporting greatly improves the chances of recovering funds, as fraudulent transfers can often be traced, flagged or reversed when detected early.

PalmPay’s latest advisory reflects wider concerns within the fintech sector, where operators say the rise in digital fraud threatens user trust and financial stability. As more Nigerians adopt digital financial services, criminals have adjusted their schemes to exploit gaps in awareness and personal security practices. Industry experts have observed that while technological safeguards are becoming more advanced, the human element remains the weakest link — making education essential.

The company urged Nigerians to view digital security as a daily responsibility, much like safeguarding physical cash. It encouraged users to remain alert, double-check messages and take immediate action when something appears unusual. PalmPay added that the growth and reliability of Nigeria’s digital economy depend on cooperation between service providers, regulators and users themselves.

With digital payments becoming a core part of everyday life, PalmPay said its priority is ensuring customers can transact with confidence. The company reaffirmed its commitment to strengthening its security infrastructure while continuing to empower Nigerians with the knowledge needed to protect their digital wallets from fraud.