E-Business
To make ePayments more acceptable, Nigeria needs to curb fraud
By Victor Irechukwu, Head of Engineering, OnePipe
When a credit alert drops on your phone, chances are you will get excited. Even if it wasn’t a surprise and you were expecting that money. But when it is a debit alert, there’s also a certain type of gloom you feel; you want money to keep coming in but as little as possible of it going out.
Victor Irechukwu, Head of Engineering, OnePipe
It may be safe to say most of us feel that way.
Now, imagine the debit alert was for a transaction you know nothing about. A commonly reported theme has been alerts that your card was used to make deposits on a gambling website, whereas you may never have even indulged in gambling your entire life.
At other times, you are shown a debit alert by someone who wants to purchase goods or services from you, but only later realise they showed you what has now been termed ‘fake alerts’. By this time, your goods, for instance, would have been long gone.
In recent months, social media has been awash with reports of money literally growing wings and leaving some people’s accounts to those of other people without authorisation. Many of these cases have gone viral on social media, causing embarrassment for the banks involved – The issues are either quietly – or corrected with public acknowledgement. But not all are resolved, at least not yet.
As much as the country and even individuals would like to go cashless, these bad experiences leave a sour taste in the mouth, and they have continued to rain on the parade as Nigeria marches towards a cashless economy. It must be stressed that a cashless economy does not mean theft of money will stop, what it does is to change how thieves go about it. But more importantly, it also doesn’t mean thefts must occur, at least not if systems are strengthened and the right protocols are put in place.
In the electronic world, an article on The Balance Money describes hackers as the bank robbers and muggers and in a cashless society we are all exposed to them. According to the Nigeria Inter-Bank Settlement System Plc (NIBSS), growth in the use of electronic channels, specifically mobile devices has also enticed fraudsters into focusing their efforts on these electronic channels.
When an attack is successful and the culprits are able to drain funds from your account, you could be effectively left stranded. God forbid you needed that money for a life threatening emergency because that could be the end unless you are one of the lucky few whose funds get recovered in a place like Nigeria – and on time too.
Agusto & Co.’s ‘2022 Consumer digital banking satisfaction index for Nigerian banks’, found that approximately 59 percent of respondents had been fraud victims on the digital platforms of their banks.
The figures in terms of number of attacks, success rate and amounts lost remain a source of concern. By the third quarter of 2022, the total number of frauds & forgeries cases reported by Nigerian banks was 19,314 as against 27,356 incidents reported in the second quarter of 2022.
But there’s more. While the number of attacks represents a 29.40 percent decrease between the periods, the total sum reported to be involved in fraud cases increased by 9.50 percent to N9.62 billion from N8.78 billion in Q2 2022. Also, for the total amount lost due to fraud incidents, there was a significant increase of 207.94 percent from N1.17 billion in the second quarter of 2022 to N3.62 billion in the third quarter of 2022.
In essence, the number of attacks may have decreased within that particular period, but more money was lost to the fraudulent attacks.
These insights were provided in the Q3 2022 report by FITC, an organisation mandated to receive data on fraud from all Nigerian banks and prepare quarterly reports. The figures show that the highest number of occurrences were recorded under computer/web fraud followed by mobile fraud which includes fraud activities through USSD transactions and ATM related fraud.
BusinessDay had even reported that every day between January and March 2022, there was an average of 450 incidents of frauds and forgeries against Nigerian bank customers. In those three months, the attackers targeted N14.65 billion, with Computer/Web Fraud responsible for N10.57 billion (72.18 percent), and Mobile Fraud recording 1.48 billion (10.08 percent).
Those 40,522 attacks had resulted in N1.54 billion lost by bank customers. Computer/Web Fraud accounted for 70.51 percent (N1.07 billion), followed by Mobile Fraud accounting for 17.58 percent (N270.92 million) at the time.
Going back a bit, data by NIBSS also showed that fraud attempts via mobile channel saw a 330 percent increase year-on-year (YoY) between 2019 and 2020, while attempts via web and POS channels saw a 173 percent and 215 percent increase YoY. In those nine months, 96 percent of the attacks were successful and there were 46,126 of such attacks.
“This trend is expected to continue as Nigeria further grows financial inclusion and customers become increasingly dependent on electronic channels for their day-to-day transactions,” said NIBSS. In other words; things are expected to get a lot worse, according to the organisation described as Nigeria’s central switch for the financial industry.
Fraud is and has always been a large threat to commerce and e-payment transactions. It is impossible to totally eliminate the chance of fraud, but applying timely measures and ensuring the use of secure payment infrastructure can help reduce or even eliminate these risks. Security should continue to be top priority for every party involved in ePayment transactions. Fraud prevention involves taking measures to stop fraud from occurring and taking steps to detect frauds quickly (when they occur) and stop them as soon as possible. Different techniques for preventing and detecting frauds are required as there are different types of fraud in e-payment transactions.
Awareness of these risks by merchants, consumers and individuals plays an important role in reducing fraud in e-payment transactions. Merchant awareness and education is important – they should be aware of the types of frauds, implications and application of best practices. Consumer awareness and education is also important in order to reduce identity theft or payment data theft. This would help the individual in adopting an active and cautious attitude when carrying out electronic transactions. It could teach them to be aware of possible risks, avoid e-scams, and minimise giving vital information to merchants (or other parties) when carrying out electronic payments.
Africa stands at vital crossroads, balancing intricate geopolitical challenges while taking advantage of promising economic opportunities. With the Gulf Cooperation Council (GCC) announcing 73 Foreign Direct Investment (FDI) projects in Africa worth more than $53 billion in the last year alone, according to the World Economic Forum, and significant growth in technology, renewable energy, and healthcare sectors, across the continent, Africa is poised for remarkable progress.
In light of these developments, Allison, a globally renowned communications consultancy, and BHM, Africa’s leading public relations firm, are joining forces to co-host an exclusive breakfast event on the sidelines of the 79th United Nations General Assembly (UNGA79) in New York City.
The “Africa Breakfast Convos,” set for Friday 27 September 2024, at the World Trade Center, will convene business and public sector leaders from various African nations, representing key sectors such as telecommunications, finance, entertainment, government, technology, and trade.
With 70% of sub-Saharan Africa’s population under 30 and projections indicating that one-fifth of the global population will be African by 2030, the continent’s youthful demographics are drawing significant international attention.
This exclusive gathering aims to showcase Africa’s immense potential for economic growth and development while emphasising the continent’s role in achieving sustainable development goals.
The event will feature panel discussions, keynote speeches, and networking sessions exploring various aspects of the African narrative: big business, technology, pop culture, creative economy, soft power, and geopolitics. It will serve as a platform to highlight expertise and innovation on the continent.
Claudine Moore, Managing Director, Africa, at Allison, stated, “The ‘Africa Breakfast Convos’ represents a unique opportunity to bring together influential voices and decision-makers from across Africa and beyond.
“We’re excited to again facilitate meaningful dialogue during the United Nations General Assembly when Africa is a focus and we are collectively working towards collaboration driving sustainable growth and social impact across the continent.”
Femi Falodun, Executive Director, BHM, added, “This event underscores Africa’s position as a land of opportunity for investment and collaboration.
“By showcasing the continent’s dynamism and potential, we aim to foster partnerships that will contribute to shared prosperity and sustainable development.”
The “Africa Breakfast Convos” aligns with UNGA79’s theme while focusing on Africa’s potential as a driver of global progress.
“It emphasises the role of business in driving sustainable development, the importance of public-private partnerships, and the opportunities for collaboration with Africans in the diaspora.
Dr. Vincent Olatunji, national commissioner and chief executive officer, Nigeria Data Protection Commission (NDPC), has stated that it is now the right of citizens for their privacy to be protected.
Dr. Vincent Olatunji, national commissioner. NDPC
Olatunji said this when he received a group of international data protection experts from Somalia who were on a study tour to explore Nigeria’s data protection ecosystem and its unique models.
Nigeria and Somalia are meant to exchange ideas on the protection of data, with the East African nation eager to learn what their West African counterparts are doing to keep the privacy of their citizens safe.
“It is a digital age and the protection of the privacy of all citizens of the world is paramount,” he said during the meeting held in Abuja.
“It’s now the right of all citizens for their privacy to be protected. That’s why all countries across the globe are putting in place those measures to ensure that they have their enforceable data protection rights and also put in place data protection authority to ensure that they enforce the law of data security.
‘In Nigeria, we recognise the need to protect the privacy of our citizens as it is enshrined in the 1999 constitution.”
Speaking earlier, Jamal Mohammed, Somalia’s ambassador to Nigeria, advised the delegate from his country to go home with the message that Nigeria has everything the war-torn country needs to develop. He pleaded with the NDPC DG to help his country in the area of data privacy and security.
“I’ve been here for three years now. Everything Somalia needs is in Nigeria in terms of knowledge and in terms of experience. I’d like you to take this message to Somalia,” he said.
“Don’t go to any other places. So, you’ll get anything you need in Somalia. However, in my stay here, I faced two challenges.
“The number one challenge was to convince Nigerians about Somalia. They have a phobia about Somalia. The same thing with Somalians.
“I’ve tried to convince Somalians to come to Nigeria but now they’ve got an opportunity.”
In a bid to unlock new growth and profitability opportunities for businesses of all sizes, TD Africa has pulled wraps off its fully automated Microsoft Cloud Solution Provider (CSP) platform.
Through this innovative automated portal, Microsoft’s indirect resellers can now resell Microsoft licenses in 47 African countries and enjoy security, profitability, increased productivity, collaboration, and flexibility, courtesy, TD Africa.
Nigeria CommunicationsWeek reports that the automated CSP solution which streamlines the licensing process from customer onboarding to license provisioning, eliminates manual tasks and reduces turnaround times, thus, allowing businesses focus on delivering exceptional customer value while maximising their revenue potentials.
Read Also: TD Africa partners ZTE for quality and affordable smartphones
With competitive pricing and a comprehensive suite of Microsoft cloud products, businesses of all sizes now have access to a compelling solution to expand their reach and drive digital transformation.
The advantages of the platform which include: seamless license provisioning, competitive pricing, expanded reach, enhanced efficiency, and comprehensive product suite, make it an ideal choice for businesses seeking to capitalise on the growing demand for Microsoft cloud solutions on the continent.
Tobe Mbaneafo, Head of the Microsoft Business Unit at TD Africa, said that TD Africa is elated to introduce the A to Z automated CSP platform.
His words: “We are excited to introduce our Automated CSP platform as a game-changer for businesses looking to expand their operations across Africa.
“By providing a seamless and efficient solution for selling Microsoft licenses, we are empowering our partners to capture new opportunities and deliver exceptional value to their customers.
“This platform is a testament to our commitment to driving digital transformation and supporting the growth of businesses across the continent.”
Read Also: MTN Nigeria, Microsoft Partner on Cloud Data Hosting Solutions
To make the process stress-free, TD Africa has developed a user-friendly platform (csp.tdafrica.com) to among other things, enable businesses register and verify their account effortlessly, access a personalised dashboard for managing customer records, add tenants, select products, make payments, explore a comprehensive product catalogue with competitive pricing, make secure payments directly on the platform, and benefit from automated license provisioning after successful payment.
The tech distribution giant’s automated CSP platform is the future of cross-border business, offering unparalleled efficiency, scalability, and profitability.
Existing Microsoft partners can leverage this groundbreaking platform by registering at https://csp.tdafrica.com/auth/signup.
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