It was the latest in a spate of attacks blamed on the Nigeria-based Islamist militant group in northern Cameroon, which have driven tens of thousands of people from their homes.
The security source said the attacker blew himself up in the town of Djakana near the Nigerian border overnight.
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"Others who were wounded are in hospital. We fear the number of victims could rise."
Most of the victims were members of a local vigilante group tasked with hunting down Boko Haram fighters.
"They were gathered in a video room when the attacker entered and triggered his explosives," the security source said.
Boko Haram's seven-year insurgency has left at least 20,000 people dead in Nigeria and border areas of neighbouring Niger, Chad and Cameroon, and made more than 2.6 million homeless.
Some 2,000 Chadian soldiers are set to launch a counter-offensive against the group in the region, as part of a fight back by the four countries targeted by the group.
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