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The short answer
Generally yes, the bank is answerable to you. Your contract is with the bank, which must not release your money without your authority, and an employer is commonly held responsible for wrongs its staff commit in the course of their work. Report it in writing to the bank and its whistleblowing line, escalate to the CBN after two weeks, and report to the police or EFCC, which has prosecuted bank staff for such fraud.
Insider fraud is one of the most upsetting kinds: a teller, account officer or ATM custodian uses their access to take your money. Customers often fear the bank will close ranks. In fact, the position is usually stronger for you than in ordinary fraud, because you did nothing to authorise the payment. This guide sets out why, and what to do. It is general information, not legal advice.
Why the bank is answerable
Your contract is with the bank
A bank must pay out your money only on your valid instructions, and must take reasonable care and skill in doing so. A 2025 Court of Appeal decision, All States Trust Bank v BIU Community Bank, summarised by LawPavilion, applied those duties when it upheld a customer's claim over about ₦39 million in unauthorised withdrawals. If an employee moved your money without your instruction, the bank released it without authority, whoever inside the bank did it. See a bank's duty of care: what courts have ruled.
Responsibility for staff
Nigerian law follows the common-law idea of vicarious liability: an employer can be held responsible for wrongs its employees commit in the course of their employment. A bank may argue that a fraudster was acting entirely for themselves, outside their job. Whether that argument works depends on the facts, such as whether the employee used access the bank gave them for their role. We did not find a recent appellate case on this point that we could verify, so treat this as the general principle and ask a lawyer for the current authorities.
Bank staff are prosecuted
The Guardian reported that on 11 January 2023, the Federal High Court in Abuja, before Justice Mojisola Olajuwon, convicted two bankers, Agbo John Agama and Edoh Steve, of conspiracy and aiding and abetting fraud involving ₦9.4 million, and sentenced them to three years' imprisonment. The charge, linked to a bank branch in Makurdi, said they "used an unauthorised access device to wit: a primed ATM Card", under section 33(2)(b) of the Cybercrime Act 2015. The same feature cites section 20 of that Act, on bank staff who commit fraud through false electronic or verbal messages.
How to report it
- Write to the bank. Address it to customer service and, if you can, the branch manager or head of fraud. State the debits you did not authorise and that you suspect an employee. Ask for a tracking number; the CBN guide says one should be issued within three days.
- Use the bank's whistleblowing line. Most banks run one for reporting staff misconduct. Union Bank's contact page, for example, lists 0800 847 6337 (0800TIPOFFS). Use the number on your own bank's official site.
- Ask for a written answer on the authority. Which instruction, channel and staff ID were used? Banks keep logs of who accessed accounts.
- Escalate to the CBN. If not resolved within two weeks, write to the Consumer Protection Department at cpd@cbn.gov.ng with your evidence.
- Report to the police or EFCC. A criminal report puts the employee's conduct on record and can support recovery. See reporting fraud to the police and EFCC.
What recovery looks like
| Route | Who pays | Notes |
|---|---|---|
| Bank refund after complaint | The bank | Often the fastest outcome where the evidence of insider access is clear |
| CBN escalation | The bank, if directed | Needs proof you complained to the bank first |
| Civil claim | The bank (and the employee) | For large sums or where the bank refuses |
| Criminal prosecution | The convicted employee | Restitution is possible on conviction, but slow |
A bank that refunds you can pursue its own employee afterwards; that is its problem, not yours. If the bank says it is "investigating" and asks you to wait, ask for the expected completion date in writing, and keep the CBN two-week clock running from your first written complaint. An internal investigation is not a reason to pause your escalation.
What to check first
- Do your statements show debits at a branch, ATM or channel you never used?
- Did anything change on your account without your request, such as a new phone number, email or card?
- Have you ever handed your card, cheque book or PIN to a staff member "to help"? Be honest with yourself; the bank will ask.
- Do you have the names of staff you dealt with and dates of visits?
Customer negligence can reduce a claim, so if you did share a PIN with a staff member, say so and explain the circumstances. Concealing it usually does more harm. For signs of fake staff (people posing as bank employees), see fake bank staff and account upgrade visits.
Questions people ask
Can a bank refund money stolen by its staff?
Yes. Your contract is with the bank, which must not release money without your authority. Where an employee moved your money, complain to the bank and ask for a refund, then escalate to the CBN if needed.
Is a bank responsible for the actions of its employees in Nigeria?
Under the general principle of vicarious liability, an employer can be responsible for wrongs staff commit in the course of their work. The bank may argue otherwise, so a lawyer can advise on your facts.
How do I report a bank staff for fraud?
Write to the bank and use its whistleblowing line, escalate to the CBN Consumer Protection Department after two weeks, and report to the police or EFCC.
Have bank staff been jailed for customer fraud in Nigeria?
Yes. In January 2023 the Federal High Court in Abuja convicted two bankers over ₦9.4 million ATM-card fraud and sentenced them to three years, as The Guardian reported.
Sources
- The Guardian Nigeria: Examining liability of bankers and customers in unauthorised withdrawals (28 Mar 2023) · accessed Oct 2026
- LawPavilion: Bank liability for honouring cheques or withdrawals without customer authorisation (All States Trust Bank v BIU Community Bank, 2025) · accessed Oct 2026
- CBN: How to Lodge a Complaint (CPD/GEN/GUIDE/03, 24 Jan 2022) · accessed Oct 2026
- Union Bank: How can we help you (contact and complaints) · accessed Oct 2026
This article is general information, not financial, legal or tax advice. Products described are provided under the terms on this site and are subject to regulation and eligibility.