Kidnappers Now Using Banks to Receive Ransom Payments — Security Expert Raises Alarm

Kidnappers Now Using Banks to Receive Ransom Payments — Security Expert Raises Alarm

A security expert, Kabir Adamu, has raised fresh concerns over a growing trend in Nigeria where kidnappers now demand ransom payments through bank accounts instead of cash.

Speaking during an interview on Arise News, Adamu, who is the Chief Executive Officer of Beacon Security and Intelligence Limited, described the development as troubling and a sign of evolving tactics among criminal groups.

According to him, kidnappers previously relied on cash transactions or fintech platforms, but have now shifted to traditional banking systems. He revealed that his team has tracked multiple cases where ransom payments were successfully deposited into bank accounts and withdrawn, although he did not disclose the financial institutions involved.

Adamu warned that this shift raises serious questions about the effectiveness of banks’ transaction monitoring systems and their compliance with regulatory standards.

He acknowledged that Nigeria has made notable progress in strengthening its financial intelligence framework, particularly after its removal from the grey list of the Financial Action Task Force. However, he stressed that enforcement remains a major challenge.

“A lot has been done in terms of policy, but there are still significant gaps in operations and compliance,” he said.

Data from SBM Intelligence highlights the scale of the crisis. The report shows that kidnapping for ransom generated at least ₦2.57 billion between July 2024 and June 2025. Within the same period, kidnappers demanded about ₦48 billion but received only a fraction of that amount.

The report further recorded 4,722 abductions across 997 incidents, with at least 762 fatalities, underscoring the severity of the security challenge.

Adamu also pointed to internal vulnerabilities within the banking sector. He noted that many banks rely heavily on contract staff—sometimes accounting for up to 70 percent of their workforce—who are often poorly paid and may not undergo thorough background checks. This, he said, increases the risk of compromise or collusion with criminal elements.

He emphasized that beyond policy improvements, there is an urgent need for stricter enforcement, enhanced monitoring systems, and stronger institutional accountability to safeguard the financial system.

The concerns come amid broader government efforts to tackle insecurity. In December, authorities officially designated kidnappers and other violent groups as terrorists, a move aimed at enabling security agencies to adopt tougher measures and treat kidnapping as a major national security threat rather than an ordinary criminal offence.

Kidnappers Now Using Banks to Receive Ransom Payments — Security Expert Raises Alarm