Clean-up Required on Electronic Channels

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Wednesday, August 03, 2016 9:05am /FBNQuest Research

Despite the prevailing macro challenges, e-channel platforms (internet banking, mobile banking, etc.) have experienced significant growth in Nigeria. The adoption of e-payment channels as well as the rapid evolution of the e-channel ecosystem increases the incidence of electronic fraud.

The latest annual Electronic Fraud Forum (NeFF) Report from the CBN captures views from DMBs on e-payment channels in 2015. The report revealed that there was a sharp increase in phishing attacks last year.

The rate of e-fraud in terms of value reduced by 63% in 2015, partly due to the introduction of bank verification numbers (BVN). However, the volume increased significantly by over 500% compared with 2014.

Similarly, data released recently by Nigeria Information Technology Development Agency (NITDA) suggest that there were 3,500 cyber-attacks with 70% success rate and a loss of US$450m in 2015.

Cyber criminals employ several techniques to perpetrate e-fraud such as data theft, email spoofing and phishing just to mention a few. The electronic fraud forum unit plans on combating these with effective fraud strategies by collaborating with banks and government agencies.

E-channel platforms play a vital role in shaping developing economies. For the government, it encourages improved transparency; as for consumers, it is more convenient and often times relatively cheaper, thus leading to increased business activity and higher purchases for companies.

Cyber security needs to remain a priority for all stakeholders in order to encourage continued patronage of this platform.

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