How quick cash withdrawals in traffic exposes Lagosians to fraud

Lagos, Nigeria’s financial and business hub, is a fast-paced city that has a rhythm of its own.

The traffic is unpredictable, chaotic, and for many residents, it’s also where financial transactions happen on the go.

Like the popular saying – anything well-packaged can sell in Lagos traffic. For many Lagosians, urgency comes first before caution, and for this reason many often fall prey to financial fraud.

A quick cash withdrawal here, a fast Point of Sale (POS) payment there; coupled with the unpredictability of the network – Lagosians get exposed to fraud that would have been avoided if caution was deployed at first instance.

Today, many Nigerians are relying on unverified agents to complete card transactions in traffic but that convenience comes at a cost.

There have been recent reports of people signaling POS agents to withdraw funds from a moving bus and then receiving large amounts of debit alerts later on.

For instance, Modupe Oni, a Lagos resident, recently withdrew funds from an agent on her way to a function. She got a debit alert on her phone but the transaction failed.

Oni was forced to make another transaction on the same POS hoping the first transaction will be reversed. However, after waiting for the mandatory 24 hours without a refund; she went to lay a complaint in her bank.

To her biggest surprise, the bank disclosed that the transaction went through and asked her to go back to the POS agent.

“I went to the POS agent two days after and it was the same story of declined transaction. Long story short, I lost the said money because it was back and forth between the bank and the POS agent,” Oni said.

Situations like this are increasingly common in high-pressure environments like traffic, markets, where urgency can lower vigilance.

Roadside ATMs and unverified POS agents often operate without the safeguards found in more secure locations, making them easy targets for fraud tactics like card skimming or PIN capture.

In these moments, urgency often overrides caution. And that’s exactly what fraudsters rely on. “When customers fall victim to card fraud, acting quickly is very important,” Omoruyi Aiyudu, anti-fraud manager at Palmpay, said.

According to him, the digital platform always advises customers to immediately block their card via the app, if there’s an incident of fraud, and to immediately report the incident via the app (report scam) or through official PalmPay support channels, and secure their account by changing passwords or PINs.

“Customers should also stay vigilant and avoid sharing sensitive banking details with anyone. At PalmPay, we remain committed to strengthening fraud prevention measures while educating users on how to protect themselves from scams,” Aiyudu added.

The situation with failed transactions is so rampant that many customers had to let go after weeks, and sometimes months of unresolved complaints.

Moses Lawal, a Lagos resident and social commentator, narrated his experience with BusinessDay: “The incident was at IKEDC office at Alausa at the peak of the immediate past CBN governor’s introduction of cashless policy in 2023.

“I had been very busy at work that week and kept on postponing purchase of electricity units for home use. Eventually, on a Friday afternoon, I left early to upload units into my smart card.”

According to Lawal, what used to be a quick dash to the IKEDC office ended up being a nightmare.

“I met a number of frustrated people waiting as well, but after a while they left because the network was horrible.

“Possibly only one transaction was going through successfully out of every ten attempts. But I was hellbent on getting it done because by then, the electricity units left on the meter at home was critically low.

“Sadly, my desperation only ended with about 8 failed-but-debited transactions across three different bank’s cards I used,” Lawal said.

He disclosed that he logged complaints online against the three banks. However, one of the banks with the most failed transactions has not resolved the complaint till date.

“I have good experience in the banking sector but despite that, the complaints were never resolved. I escalated to both CBN Complaint Unit and Consumer Protection Agency all to no avail.

“At a point, I was only getting the cliche responses ‘Your complaint is being looked into and you would be contacted soon with a resolution.’ One day, I just looked at the long mail trail and decided to let go. And that was it,” Lawal disclosed.

Practical safety tips for everyday transactions

To avoid falling victim to card fraud, there are few essential precautions to keep in mind:

Inspect before you insert your card: Look out for unusual attachments or anything that seems tampered with around the card slot or keypad.

Protect your PIN and card details: Always shield your PIN and never allow your card out of sight during any transaction. Your awareness is your strongest defence against fraud.

Avoid ATMs in unsecured locations: If an ATM is isolated, poorly lit, or lacks any visible security presence, it’s best to skip it, no matter how convenient.

Be cautious with roadside POS agents: Not all agents operating in traffic or informal settings are verified. If you’re unsure, don’t proceed.

Never ignore a failed transaction: Monitor your account immediately. A failed transaction doesn’t always mean a safe transaction.

Enable instant alerts: Turn on SMS or app notifications to track every transaction in real time.

As digital payments become more embedded in everyday life, the need for safer, more reliable transaction options has become critical.

Digital platforms like PalmPay are addressing this by providing access to verified agents that reduce reliance on risky, unstructured transaction points and layers of in-app security that curb fraudulent transactions.

A smarter way to transact

When it comes to your money, caution should never be optional. Choosing secure and reliable platforms and staying alert during transactions can make all the difference in your online banking experience.

Because at the end of the day, financial safety isn’t just about where you transact, it’s about using the right channels.