Global cost of cyber-crime predicted to hit $6trn by 2021

The threat of cybercrime in Nigeria has reached alarming levels, with commercial banks losing billions to electronic fraud and cybercriminals targeting bank customers. According to the country's central bank, between 2000 and 2013, Nigerian banks lost approximately 159 billion Naira to electronic fraud, while bank customers fell victim to about 6 billion Naira in e-fraud. This trend is further exacerbated by the steady growth in the usage of e-payment channels, as experts predict that global cybercrime costs could skyrocket to $6 trillion by 2021. David Isia, the President of the Information Security Society of Africa, sheds light on the severity of the situation. Isia highlights the staggering increase in transaction volume in the third quarter, with 9.9 trillion transactions conducted through NIPs instant payments and 5.5 trillion Naira through National Electronic Funds Transfers. The proliferation of mobile transactions, POS, and internet transactions further amplifies the opportunities for cybercriminals to exploit vulnerabilities in electronic platforms. The ease of entry into cybercrime is a significant concern, with minimal effort and resources needed to perpetrate fraudulent activities. Isia notes that the landscape of cybercrime has upended traditional financial concepts, with low-risk cyberattacks yielding high rewards. Despite the exponential growth of cybercrime, authorities and regulatory bodies in Nigeria, including the Nigerian police, EFCC, and the central bank, have implemented measures to combat cyber threats. Isia stresses that while cybercriminals may seem one step ahead, the success rate of cyber fraud attempts is decreasing, signaling some progress in deterring criminal activities. Financial institutions, such as Union Bank, are heavily investing in cybersecurity measures to safeguard their systems and protect customers from potential breaches. Banks employ encryption and two-factor authentication to fortify their digital defenses and ensure secure transactions. Despite these safeguards, individuals remain susceptible to cyber scams and phishing attacks, primarily due to lack of awareness and the allure of fraudulent promises. Isia underscores the importance of education and vigilance in combating cyber threats, urging individuals to exercise caution and report suspicious activities to their banks. By enhancing cybersecurity awareness and adopting proactive measures, the Nigerian financial sector can mitigate the risks associated with cybercrime and safeguard the interests of customers and stakeholders. As the digital landscape continues to evolve, the battle against cybercrime remains an ongoing challenge that requires collaborative efforts from regulators, financial institutions, and the public.