E-Business
Cyber Fraud Threatens Online Retail in Nigeria-KPMG
The increasing frequency and magnitude of cybercrime incidents globally make it apparent that cybercrime is here to stay, according to a report by KPMG.
In the report, KPMG acknowledged that the Central Bank of Nigeria’s report for the first half of 2013 noted that there were 2,478 fraud and forgery cases involving Nigerian banks valued at over N20 billion.
This represented an 8% increase over the previous year volume but a significant increase in value of over 200% from 2012.
In its 2014 survey, KPMG reported that 2% of retail customers indicated that they had experienced a fraud incident in the last year.
Thus, the researchers expressed worry that while this number appears small today, it may signify the start of a potentially disturbing future trend.
Gerben Schreurs, John Hermans and Olumide Olayinka, partners at KPMG, wrote in the report, “Although the internet banking has an underrated opportunity and while the adoption of electronic banking has provided some measure of convenience and ease to customers, it is difficult to ignore the resultant security risks that may face customers and financial institutions at large.
The trio highlighted that the growing popularity and convenience of electronic banking has further presented enhanced opportunities for cybercrime.
There is a far-reaching scope of threats that range from low degree crimes to high volume and value crimes, all with the potential to impact large corporations and individuals.
The survey also revealed that “Awareness Needs Continuous Efforts’, hence security awareness and understanding of risks is crucial in cybercrime defence.
“As attackers understand the risks of people, processes and technology and how to exploit them, so should organisations. As a consequence, organisations should ask themselves whether they are aware and capable of handling a cybercrime attack.
“From our survey, we found that 35% do not agree that their organisation is sufficiently aware of cybercrime, although the financial sector respondents score significantly lower. This would imply that financial institutions are more aware of cybercrime than other typologies. As previously discussed, the full scale of cybercrime implications is often overlooked.
“The biggest loss companies perceive is disruption of business processes, but is this true or is it a lack of awareness?” they queried.
They added that understanding the motives is key, as attacks may come by various methods and means.
“Organisations have experienced some form of ‘social engineering’ attack such as phishing and compromised web applications according to 33% of the respondents. The main motives for attacks found are that organizations are perceived as ‘low hanging fruit’ for organised crime. Contrary to previous trends, espionage is not a relevant motivation for attackers, according to 63% of the respondents.
“Since detective internal control measures are currently not widely used by organisations, the increased use of these internal control measures might change the perspective of organisations on the means and motives of attacks. The financial sector represents 67% of the attacks where the attacker’s motive was access to money,” the report read.
When taking all sectors into account, consumer market companies are most concerned about disruption of business and production processes, KPMG said.
Loss of money, disclosure of intellectual property and other data are so far only recognized as a cause of attack to a limited extent.
Some of the major technical areas at high risk, they said, include email servers, web application servers, ERP systems, desktops, and unstructured data on file systems (file servers). Mostly mentioned were web application servers (38%), followed by file servers (16%) and mail servers (17%). Less frequent are attacks that have penetrated ERP systems, desktops, and process control domains (<8%).
Based on many reviews and security tests of web applications, we believe that many web applications and therefore websites are still insecure, and even contain ‘low hanging fruit’ weaknesses such as cross site scripting, etc.
Many websites are not developed with secure programming in mind, nor are they sufficiently tested for security before going live, KPMG highlighted.
Transition Monitoring Group (TMG) has called on the National Data Protection Commission (NDPC) to investigate what it described as an alleged unauthorised and fraudulent use of personal data of constituents in the failed recall attempt of Natasha Akpoti-Uduaghan, Senator representing Kogi Central in the National Assembly.
The organisation expressed concern that voters’ personal information may have been illegally harvested and deployed without their consent to generate signatures for the recall petition.
Speaking at a press briefing in Abuja, Auwal Rafsanjani, chairman, TMG, observed that such an act amounts to a gross violation of the Data Protection Act, which he said, also undermines public trust in the country’s democratic process.
He called for a forensic verification of the Voter Identification Numbers (VINs) submitted in the recall process, using the Bimodal Voter Accreditation System (BVAS).
TMG’s position came a few days after the Independent National Electoral Commission (INEC) dismissed the petition seeking to recall Natasha for failing to meet constitutional requirements.
The commission had revealed that following a thorough review of the signatures and thumbprints submitted by petitioners, only 208,132 signatories were verified, falling short of the required 237,278.
Rafsanjani, however, expressed concern on how more than 50 per cent of total registered voters in Kogi Central quickly turned up to sign the petition for the recall of Natasha in a country, he said, has historically experienced a worrisome level of voter apathy.
According to him, the incident calls for deeper insight that can only be brought about through thorough investigation.
“While it is noted that INEC has terminated the process at the stage of counting signatories to the petition as the number of signatories did not meet the constitutional requirements for further verification, the seeming fraud of harvesting voters’ details from anywhere to file the petition cannot be overlooked,” he said.
Rafsanjani added: “We are also deeply worried that against the provision of the Data Protection Act, personal data of citizens of Kogi Central Senatorial District have been harvested and used without their consent. This fraud must be investigated by the National Data Protection Commission to assure Nigerians that their personal data will indeed be protected as envisaged by the law.
“Further investigations to verify and authenticate the Voter Identification Number (VIN) through the BVAS must be carried out. Where investigations reveal a fraudulent process, the petitioners must be brought to justice to serve as deterrent to those who would be willing to be induced and used by politicians for this kind of charade in the future.”
But the NDPC, has, reiterated commitment to enhancing data privacy among public and private bodies in the country.
Dr. Vincent Olatunji, national commissioner and CEO, said the commission aims to enforce stricter data protection measures to safeguard sensitive public and private information, as well as promote regulatory compliance in line with relevant laws.
National Data Protection Commission (NDPC) has reaffirmed its commitment to strengthening data privacy practices across Nigeria’s public and private sectors.
Speaking at a regional capacity-building workshop in Katsina for ICT personnel from the north-western states, Dr Vincent Olatunji, national commissioner and chief executive officer of the NDPC, said the commission is stepping up enforcement of data protection regulations in line with national laws.
Olatunji, represented by Mr Princewill Nnaka, head of the Commission’s Enforcement Unit, noted that the NDPC is focused on raising awareness of data rights, improving staff training, and partnering with development agencies to boost capacity.
He said stronger data protection measures would help reduce incidents of cyberbullying, online financial fraud, and loss of lives due to breaches of privacy.
“Data protection is a global concern,” he said. “Our goal is to ensure Nigeria aligns with international standards in the safeguarding of personal data.”
Also speaking at the event, Naufal Ahmed, director general, Katsina State Directorate of ICT (KATDICT), said the training aimed to equip participants with the technical knowledge required to implement the Nigeria Data Protection Act (NDPA) 2023.
He added that the initiative would also enable participants to serve as Master Trainers and Data Protection Officers (DPOs) in their respective institutions.
The three-day programme drew 40 participants, including four officers each from Kaduna, Kebbi, Jigawa, Sokoto, and Zamfara States, as well as 16 officials from various ministries, departments, and agencies in Katsina State.
Kudirat Kekere-Ekun, Chief Justice of Nigeria, has cautioned judicial officials to be vigilant against data breaches, cyber threats and vulnerabilities in online systems as the judiciary continues to adopt digital technology.
Kudirat Kekere-Ekun, Chief Justice of Nigeria,
Kekere-Ekun gave the caution while delivering a keynote address at the opening ceremony of the 2025 National Workshop on Information and Communication Technology, held at the National Judicial Institute in Abuja.
The CJN represented by Salisu Garba, administrator, National Judicial Institute, emphasised that, as the judiciary handles cases, files, personal information, and classified government data, it remains a prime target for cyber attacks.
She underscored the need to safeguard the integrity of court records, warning that any breach could carry serious legal consequences and pose risks to national security.
She said, “Thus, a strong cybersecurity framework must be implemented to safeguard judicial data from unauthorised access, hacking, and corruption.”
The CJN emphasised the need for judicial ICT personnel to receive proper training in cybersecurity best practices, encryption methods, and secure data management.
She commended the National Judicial Council for its proactive efforts in modernising the judiciary, noting that the Judiciary Information Technology Policy stands out as a key initiative, offering a clear framework for the effective deployment and use of ICT in court operations.
In his welcome address, Olumoh Abdulazeez, Institute’s Secretary, emphasised that the annual workshop was aimed at equipping court personnel with the skills needed to keep pace with technological advancements.
“The effective integration of technology can greatly enhance access to justice and lower the barriers for litigants.’”
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