There is a warning out from global verification companies as synthetic identity fraud in Nigeria is starting to outgrow traditional identity theft.

In recent years, Nigeria has seen a worrying shift in the landscape of identity fraud. While traditional scams involving stolen or forged identities are on the decline, synthetic identity fraud, a more complex and difficult-to-detect threat, is on the rise.

Unlike conventional identity theft, synthetic fraud involves the creation of entirely new identities using a combination of real and fabricated information. Criminals often blend legitimate data—such as a genuine Bank Verification Number (BVN) or a valid date of birth—with fictitious names and addresses to build convincing but fake digital profiles.

These synthetic identities are then used to open bank accounts, apply for loans, acquire SIM cards, or even commit large-scale financial fraud without detection.

According to cybersecurity experts and fintech analysts, the rise in digital financial services in Nigeria has inadvertently provided fertile ground for these sophisticated fraud tactics.

“Synthetic identities are harder to trace because they technically don’t belong to a single real person,” said Ifeanyi Okonkwo, a cybersecurity consultant based in Lagos. “They slip through verification systems that were designed to detect traditional fraud.”

Authorities have acknowledged the challenge. The National Identity Management Commission (NIMC) and the Central Bank of Nigeria (CBN) have begun reviewing biometric authentication methods and are exploring the integration of AI-driven fraud detection systems.

However, experts warn that technology alone may not be enough.

Public education also plays a role. Many synthetic identities begin with data leaks or overshared personal details on social media. “We need to raise awareness about how criminals collect real data to build fake personas,” said Okonkwo.

As Nigeria accelerates its digital economy ambitions, tackling synthetic identity fraud will require a coordinated response from regulators, banks, telecoms, and the public. The battle may be digital, but the stakes are very real.