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Nigeria: N2.19 billion lost to cyber crime in 2016

June 1, 2017 • Finance, Security, Top Stories, West Africa

After several months in decline, Exploit kit infections show sharp uplift and deliver a variety of threats, says Check Point. (Image source: Business Advice UK)

Nigerian Electronic Fraud Forum released their annual report on Tuesday. (Image source: Business Advice UK)

According to reports by Nigeria Communications Week, electronic payment transaction fraud rose by 82 percent in 2016 with an estimated N2.19 billion ($6,9 million) lost to cyber criminals, according to the Nigeria Electronic Fraud Forum (NeFF) annual report 2016.

The report titled, ‘a changing payments ecosystem: the security challenge’ was released on Tuesday and highlighted that “the industry recorded about 82 percent increase in the reported fraud case, when compared to 2015 and over 1200 percent compared to 2014.”

Acording to Gistreel 19,531 fraud cases were reported for banks in 2016 as against 10,743 recorded in 2015, according to the CBN Governor, Mr Godwin Emefiele, who unveiled the Nigeria Electronic Fraud Forum annual report in Abuja on Tuesday.

When broken down the report showed that across the counter transactions amounted to N511.07m ($1.6 million)of losses. This was followed by Automated Teller Machine transaction with N464.5m ($1.4 million), internet banking N320.66m ($1 million), Point-of-Sale transaction N243.32m ($765 thousand).

A further breakdown also showed that mobile banking saw N235.1 million ($742 thousand) fraud, eCommerce N132.2 million ($416 thousand), web fraud N190.9 million ($601 thousand), Kiosk N10.1 million ($31 thousand), cheque N4.5 million ($14 thousand) and N190.9 million ($601 thousand) through other platforms not categorized.

Aggregately, electronic platforms had the highest level of fraud with 77 per cent, while the non-electronic platforms witnessed 23 per cent fraud cases.

But “comparing the attempted fraud against the actual loss, the industry was able to salvage 49.7 percent of the total amount attempted by these fraudsters within the years” the report said adding that “these figures informed us that there are more attempts on yearly basis with different innovation tricks or modus operandi to take advantage of the system.”

The report said looking ahead in 2017, the financial industry as a whole must collaborate to ensure a wider gap exists between the attempted fraud and actual loss.

Staff writer

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