Digital innovation expands the opportunity for financial inclusion while simultaneously increasing the chances for financial crime. There is a need for a fundamental shift in how Nigerian banks approach fraud, moving from reactive detection after the fact, to proactive, intelligence-led prevention at the point of risk. AI is no longer a future investment, and it is becoming a baseline requirement for effective fraud and AML management. The challenge for Nigerian institutions is not whether they have the right tools, but whether those tools are governed effectively, with board-level oversight and demonstrable evidence of operational effectiveness.