Cyberfraud against Nigerian bank customers increases to N2bn in 2018

The Nigerian Electronic Fraud Forum (NEFF), reported that 63,895 bank customers lost a total of N3.6 million to cyberfraud between 2017 and 2018.

This was disclosed by Sam Okojere, the Chairman of NEFF, when he presented the forum’s 2018 annual report titled “Emerging fraud threats: An evaluation of the industry cybersecurity posture”.

Cyberfraud increased in 2018: Okojere, who is also the Director of Payments System Management Department at the Central Bank of Nigeria (CBN), explained that the number of cyberfrauds in the system increased in 2018, compared to the year before then.

“In the latest Nigeria Inter-Bank Settlement System fraud landscape report, it was reported that an actual loss of N2bn was suffered by the industry in 2018 compared to N1.6bn in the preceding year.

“The volume also increased to 38,852 from 25,043 reported in 2017. Of these figures, the mobile channel recorded the highest volume and value, with an estimate of 11,492 in volume and N598.8m in actual loss value, calling for concerted efforts by all stakeholders to tame future escalation.”

Meanwhile, the number of attempted Cyberfraud in 2018 – An analytic report from the NIBSS disclosed that the number of attempted fraud in 2018 was N9 billion.

What is Cyberfraud? Cyberfraud is a type of fraud or deception which makes use of the Internet and could involve hiding of information or providing incorrect information for the purpose tricking victims out of their money, property, and inheritance.

Ways to prevent Cyberfraud:

• Ensuring that all data are encrypted, particularly ones containing sensitive information  like personal details.
• Ensuring that networks are fully secure through the use of wired network thereby protecting them from possible hackers who may easily capitalise on Wi-Fi security lapses to remotely break into computer systems.
• Where Wi-Fi network is used, people should ensure that an up to date encryption standard is in use and turn off the service set identifier, SSID, broadcasting function on the wireless router if it is not needed.
• Nigerian organisations should deploy software security solutions that would keep an eye on what is happening in their system, blocking both known and unknown malware threats.

Recall that Nairametrics disclosed last month that bank directors were working on circulating information on cybersecurity in effort to fight cyberfraud.