As Nigeria loses N12.5 billion to e-fraud in 4 years
Emmanuel Ukudolo I Sunday, June 25, 2023
LAGOS, Nigeria – The Nigerian Communications Commission, NCC has outlined far reaching measures to be adopted by stakeholders in the telecommunications sector to combat the menace of cyber crime and e-fraud globally.
Executive Vice Chairman of the NCC, Professor Umar Garba Danbatta who was delivering a keynote address on “Combating e-fraud on telecom platforms and building consumer confidence in the digital economy” at the 2nd Quarter 2023 Industry Consumer Advisory Forum(ICAF) open forum said e-fraud encompasses a wide range of malicious activities carried out via electronic means, including identity theft, phishing, hacking, and unauthorized access to personal and financial information, with the intention to defraud or take advantage of victims.
While stressing that these criminal activities may not only cause significant financial losses but also erode consumer trust in the digital ecosystem, he advised telecoms operators to invest in robust infrastructure, employ state-of-the-art security measures, and conduct regular audits to identify vulnerabilities and address them promptly.
“Additionally, operators should implement stringent authentication protocols, two-factor authentication, and encryption mechanisms to safeguard customer data and prevent unauthorized access”, the NCC boss advised.
While alluding to the Nigeria Data Protection Act 2023, which was signed into law to provide a legal framework for the protection of personal information and the regulation of how personal information is processed, among other things, Danbatta said the NCC is also in the process of developing more elaborate Data Protection Regulations to ensure the protection and privacy of data in the Nigerian communications sector.
He said the Commission has issued the Consumer Code of Practice Regulations 2007 which among other things, provides for the protection of consumer information.
He noted that Law Enforcement Agencies must also collaborate closely with telecom operators and regulatory bodies to investigate and prosecute e-fraud perpetrators, noting that enhanced coordination, information sharing, and dedicated cybercrime units can go a long way in deterring criminals and bringing them to justice.
He averred that strengthening international cooperation in combating cross-border e-fraud is also imperative, since cybercriminals often exploit jurisdictional limitations. Danbatta emphasized that consumers also have a role to play when it comes to combating e-fraud.
“Consumers too, must be active participants in this battle against e-fraud”, adding that building consumer awareness and promoting digital literacy is crucial to empowering individuals to protect themselves.
“Telecom operators should educate their customers about potential risks, provide guidance on secure online practices, and offer user-friendly tools to monitor and manage their accounts. Regular communication with customers, promptly addressing their concerns, and providing timely updates on security issues are vital in establishing trust.
“To build consumer confidence in the Digital Economy, we must emphasize transparency and accountability. Telecom operators should be transparent about their security measures, privacy policies, and incident response mechanisms”.
He also called for collaboration with third-party security firms and independent audits to help validate the integrity of telecom platforms.
“Furthermore, fostering innovation in security technologies is critical to staying ahead of e-fraudsters”, he noted, stressing that advancements in artificial intelligence, machine learning and data analytics can enable the detection of anomalous behaviors, identify potential threats, and respond swiftly to emerging fraud trends.
Besides, collaboration between academia, industry, and research institutions, he said can drive innovation in cybersecurity and produce effective countermeasures against e-fraud.
Earlier in his welcome address, Director, Consumer Affairs Bureau(CAB)Alhaji Alkasim Abubakar Umar quoted a report which estimated financial loses to e-fraud in Nigeria to be in the region of N12.5 billion in the past four (4) years.
“The Center for Strategic and International Studies (CSIS) estimated that 600 billion US Dollars is lost to cybercrime each year, an increase from a 2014 study that put global losses at about 445 billion US Dollars”, he said.
In Africa, he said the peril of cybercrimes recorded a massive rise in the first six months of 2022, “with phishing and scams hitting 438 percent and 174 percent in Kenya and Nigeria, respectively”, the Guardian Newspapers. reported on August 3, 2022.
He said that e-fraud poses a significant threat to our society, as it undermines the trust and confidence in our digital platforms, hampers economic growth, and adversely impacts the lives of our citizens.
He noted that NCC as the regulatory authority responsible for overseeing the telecommunications industry recognizes its duty to safeguard the interests of consumers and protect the integrity of the digital ecosystem.
In his remarks, ICAF Chairman, Mazi Akpa E. Emeka said fraud has escalated as digital adoption has increased and that the situation requires that organizations simultaneously combat fraud and provide customers with a seamless digital experience.
