- Nigerians lost N12.5bn to financial crimes linked to telcos in 4 years – Reports
By Hillary Asemota
The Executive Vice Chairman/CEO, Nigerian Communications Commission (NCC), Prof. Umar Garba Danbatta, has stated that combatting electronic-fraud in Nigeria’s digital space is the responsibility of all industry stakeholders, the law enforcement agencies, telecom operators and the consumers.
Speaking at this year’s Industry Consumer Advisory Forum (ICAF) of the NCC, on combating e-fraud on telecom platforms and building consumer confidence in the digital economy in Lagos, Danbatta, said building consumer awareness and promoting digital literacy is crucial to empowering individuals to protect themselves.
He urged telecom operators to educate consumers on 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, he said.
He said: “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.”
According to him, collaboration with third-party security firms and independent audits can also help validate the integrity of telecom platforms.
Fostering innovation in security technologies, according to the EVC, is critical to staying ahead of e-fraudsters, adding that advancements in Artificial Intelligence (AI), Machine Learning and Data Analytics can enable the detection of anomalous behaviors, identify potential threats, and respond swiftly to emerging fraud trends.
“Collaboration between academia, industry, and research institutions can drive innovation in cybersecurity and produce effective countermeasures against e-fraud.
“Law enforcement agencies must also collaborate closely with telecom operators and regulatory bodies to investigate and prosecute e-fraud perpetrators.
Danbatta, urged stakeholders to rise to the challenge and build a future where the telecom platform is not only a gateway to the digital world but also a fortress against e-fraud, stressing that the need to address the growing concern of fraudulent activities in the digital realm and take proactive measures to safeguard the trust and confidence of consumers has become imperative.
Nigeria, he said has witnessed remarkable growth in the digital economy, revolutionizing the way we communicate, transact, and conduct business.
According to him, the telecom sector plays a pivotal role in enabling this digital transformation, providing the infrastructure and connectivity that fuel our interconnected world. However, with these advancements come new challenges, one of which is the rising tide of e-fraud and cybersecurity concerns, the EVC, said.
He 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.
“These criminal activities may not only cause significant financial losses but also erode consumer trust in the digital ecosystem.
We must establish comprehensive legal frameworks and standards that mandate sound security practices for telecom operators. The legal framework must focus on data protection, privacy and incident response, ensuring that operators are held accountable for any lapses in security on their respective networks.
In accordance with the Nigerian Communications Act 2003, he said, operators have a responsibility to ensure the security and integrity of their networks and to prevent it from being used in, or in relation to, the commission of any offence under any law in operation in Nigeria.
With the increasing uptake of digital financial services and the advent of disruptive technologies, the issue of cybersecurity has become increasingly important, he urged operators to invest in robust infrastructure, employ state-of-the-art security measures, and conduct regular audits to identify vulnerabilities and address them promptly.
“Operators should implement stringent authentication protocols, two-factor authentication, and encryption mechanisms to safeguard customer data and prevent unauthorized access.
He added that through its Consumer Affairs Bureau (CAB), the Commission undertakes constant consumer education with a significant part of this effort dedicated to providing information that equips the consumer to thrive in a world that has embraced digital finance. Information dissemination materials on how to safeguard themselves while using telecom platforms to access digital financial products are available on the NCC consumer portal whilst hardcopies are distributed at consumer outreach events.
To further protect telecom consumers, the Nigerian Communications Commission’s Computer Security Incident Response Team (NCC-CSIRT) periodically notifies telecom consumers of the latest cybersecurity threats and how to avoid falling victim to them.
NCC-CSIRT in collaboration with the Nigeria Computer Emergency Response Team (ngCERT) at the office of the National Security Adviser has been at the forefront of protecting telecom consumers from cyber threats.
The provision of timely advisories has helped to protect consumers from being unfairly targeted by cyber-attacks, which goes a long way in ensuring that they can access digital services without suffering unwarranted losses. We strongly believe that by fostering a culture of vigilance and knowledge, we can collectively reduce the success rate of e-fraud attempts.
In a remark, the Chairman, ICAF, Mr. Akpa Emeka, expressed appreciation to NCC for keeping the forum going and for the untiring activities of the members of ICAF that are representatives of different groups and organizations representing our esteemed consumers.
Emeka, noted that fraud has escalated as digital adoption has increased, explaining that the situation requires that organizations simultaneously combat fraud and provide customers with a seamless digital experience.
He said: “Digital adoption leapfrogged a decade in days during the COVID-19 pandemic, accelerating the shift to digital and multichannel client service that began in the 2010s.
“The pandemic-driven boost to e-commerce is estimated to have exceeded $200 billion in 2020 and 2021.
“Increased digital adoption has enabled new forms of fraudulent activity and amplified the importance of effective fraud management for promoting growth and meeting customers’ increasing expectations for digital experiences.
“Although most companies have improved their digital user interface and experience, many have struggled to effectively enhance fraud controls without impairing the client experience.”
According to him, many organizations report that they are being overwhelmed by the sheer volume of fraud attempts. In financial services, for example, many banks are so inundated by fraudsters that they cannot meet online origination targets; they are unable to verify identities and authenticate customers while combating fraud.
The evolution of fraud threats according to the Chairman, has undermined the effectiveness of a reactive approach to combating fraud, which essentially focuses on stopping schemes one by one through manual reviews.
He added that Forum intends to propose a new approach on combatting e-fraud on the telecommunication platforms and ways of building consumer confidence in the digital economy.
With the retinue of experts here present, Emeka, said NCC intends to achieve its goal using the current realities of this time to strengthen the core capabilities and improve our abilities to continually identify and address vulnerabilities arising from new fraud methods and patterns.
Also speaking the Director, Consumer Affairs Bureau (CAB), Mr. Alkasim Abubakar Umar, however noted that the growth of the telecommunications sector in Nigeria has been remarkable.
With increasing access to mobile phones and internet connectivity, the country has witnessed a surge in digital transactions, making lives more convenient and efficient.
However, this rapid expansion has also opened new avenues for criminals to exploit unsuspecting individuals through various forms of electronic fraud, he added.
While relying on reports, Umar, said Nigerians has lost about N12.5 billion to financial crimes linked to the telecommunications industry in the past four (4) years, adding that the Center for Strategic and International Studies (CSIS) estimated that $600 billion is lost to cybercrime each year, an increase from a 2014 study that put global losses at about 445 billion US Dollars.
“In Africa, 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.
