Nigerians turn to AI for shopping while demanding stronger fraud protection – Report
Global digital payments leader Visa has released the Nigerian findings of its annual Stay Secure study, revealing that consumers are increasingly embracing artificial intelligence (AI) and social commerce, while remaining concerned about online fraud and scams.
Global digital payments leader Visa has released the Nigerian findings of its annual Stay Secure study, revealing that consumers are increasingly embracing artificial intelligence (AI) and social commerce, while remaining concerned about online fraud and scams.
The study, conducted by Wakefield Research, examined consumer attitudes toward digital commerce, fraud prevention, and emerging technologies. The findings show that AI is rapidly becoming a key part of the online shopping experience for Nigerian consumers.
According to the report, 88 percent of Nigerian consumers have used AI-powered tools to support their shopping activities. Popular uses include checking reviews and product ratings (56%), comparing prices (54%), and finding gift ideas (53%). Nearly all respondents (97%) said that new technologies, including AI, have made online shopping faster and easier.
AI is also influencing how consumers discover products and retailers. The study found that 68 percent of respondents typically encounter new brands while shopping online. However, despite growing acceptance of AI in the shopping journey, many consumers remain hesitant to allow AI systems to complete purchases on their behalf. Only 34 percent said they would trust AI agents to handle checkout and payment processes.
At the same time, consumers increasingly view AI as a valuable tool in combating fraud. About 76 percent believe AI has made scams easier to identify, while 89 percent expect the technology to play a critical role in protecting consumers from fraud in the future.
The report also highlights the rapid growth of social commerce in Nigeria. More than four in five consumers (83%) said they have purchased products directly through social media platforms. However, this shift has also created new opportunities for fraudsters.
More than half of respondents (51%) reported experiencing a financial scam within the past year. Among those affected, 57 percent said the scam occurred through social media platforms, making them the most common source of fraudulent activity compared to websites, online marketplaces, or shopping applications.
Another area of concern identified by the study is the increasing exposure of children to online scams. Approximately 76 percent of respondents said children in their lives struggle to recognize fraudulent schemes, while 62 percent reported knowing a child who had fallen victim to a scam while gaming or shopping online.
The findings come as children gain greater access to digital financial tools. One-third (33%) of Nigerian parents surveyed said their children can access mobile payment applications or digital wallets.
When asked who should take primary responsibility for protecting consumers from online fraud, respondents placed the greatest responsibility on banks and financial institutions (49%). Government authorities and regulators followed at 35 percent, while payment providers were cited by 30 percent of respondents. Only 7 percent believed consumers themselves should bear the primary responsibility.
Consumers also expressed a strong preference for proactive fraud protection measures. Nearly two-thirds (64%) said they would feel more secure if banks or payment applications sent real-time alerts about suspicious transactions, while 39 percent said they would be reassured by seeing trusted and recognizable payment logos during checkout.
Commenting on the findings, Irene Auma, Head of Risk, Sub-region at Visa, said the study underscores the evolving nature of fraud as digital commerce expands.
“Visa’s Stay Secure study shows that while online shopping and social commerce continue to grow, scams and fraud are evolving too. Consumers see fraud protection as a shared responsibility, but they expect financial institutions, governments, and payment providers to take the lead, underscoring the importance of secure-by-design payment systems,” she said.
Auma added that while consumers are embracing the convenience AI brings to shopping, trust remains essential as commerce moves toward more automated experiences.
“With Visa Intelligent Commerce, we are helping enable the next era of commerce built on trust, control and confidence,” she said.
