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Fraud Trends Every CFO Should Know
PwC’s Global Economic Crime and Fraud Survey 2022 revealed that 46% of organisations have experienced fraud, corruption, or other economic crimes in the last 24 months. Ryan Mer, CEO of eftsure Africa, a Know Your Payee™ (KYP) platform provider, gives a rundown of what to look out for.
- Fraud protection is no longer optional
It’s hard to believe today, but just a few years ago, even large organisations didn’t have payment fraud protection in place. One of our clients, a listed company, had an ongoing issue with payment fraud totalling over R3 million in losses in the year prior to adopting eftsure. They haven’t lost a cent to payment fraud since.
Businesses are taking the threat of payment fraud a lot more seriously than they did even two years ago. They’re acknowledging that the payment fraud risk is there and that it’s ubiquitous – not only large corporations and banks are being targeted anymore. They know they have to be protected in some way or another.
- It’s easier to hack people than to hack machines
Business email compromise (BEC) is a massive problem, even with protection in place. As threat protection becomes more sophisticated, fraudsters are targeting people to circumvent these digital security measures. There are numerous examples of bad actors manipulating various levels of staff. Although it may be tempting to believe only gullible individuals fall for scams, but criminals are often professional, persuasive and are well-trained in using human weakness, as well as individual and company information to their advantage.
Here’s a likely scenario: A client writes an online review of your company. A fraudster sees this and now knows this person or company is your client and that you would expect emails from them. They create a similar-looking fake email address, paste the client’s logo in their email, attach a malicious document, and send it to your company asking for clarification on the ‘attached invoice’. It takes one person on your team to open that attachment without double checking the sender’s details, and your company is compromised. This happens so easily when financial teams are under tremendous time pressure.
Email security really does help, but personnel training is crucial. Otherwise, it’s like having the best security at your house, from beams to alarms to fencing, and letting someone through the gate without checking their credentials.
- Manual processes are dangerous
The surprising result of increased digital fraud and BEC is that many companies opt to solve this problem by introducing more manual processes. They’re adding another person as a point of contact or another manager to oversee crucial checks. The problem is that it’s still a manual process, reliant on a person that can be manipulated, whether unwittingly or not. It’s a case of rearranging the deck chairs on the Titanic. Digital threats must instead be fought with digital solutions.
Another common mistake is to automate some processes but keep certain steps in that process manual. And ‘manual’ doesn’t necessarily mean physical documents but can involve adding extra steps to a process that could easily be automated. Onboarding new suppliers or clients is a great example: Many businesses have a platform for this, but then request certain documents via email. That’s an invitation for an interception, impersonation or malicious attachment. Or they’ll take data from the platform and manually perform processes and procedures on it, adding in a human element and the potential for mistakes. That’s not only counter-productive from a security perspective, but also a business perspective.
Luckily, we’re seeing the pendulum start to swing in the other direction. CFOs and CEOs, the executives responsible for processes, controls, operations and systems in the organisation, are starting to pay more attention to digitisation and automation. There’s a better understanding of these risks and benefits in general. After all, there is a lot of responsibility that sits on the shoulders of those responsible for outgoing payments in an organisation.
Onboarding, for example, is one of the first experiences someone will have with your company and should be as seamless and simple as possible. By using a platform that can digitise and automate the process, you can speed up the onboarding journey and collect all documents upfront, saving time for all parties involved. A digitised and controlled internal approval process that is automatically part of internal procedures increases business efficiencies and reduces wastage of productive time and energy that should be used to further the company, as manual labour is greatly reduced.
- Don’t just upgrade; integrate
The next step is to not only automate, but to integrate. Though our solution can be used as a standalone system, we’re seeing more clients integrating it into their existing systems.
A Software as a Service (SaaS) provider like eftsure can help enhance processes and limit payment fraud risks by providing an integrated onboarding, verified master data management and payment screening solution that cross-references the payments an organisation is about to release with a database of verified bank account details. This can be integrated into anything from ERP and accounting systems to sales and customer relationship management systems. The platform alerts you to any potentially compromised payment details, at point of payment, allowing you to deal with the problem before the flow of funds has occurred.
The CFOs who are ahead of the digitisation curve, or further along in the process, are now looking for more integrated solutions. This cuts down on the number of steps in each process, and the time spent on each step – improving security while improving the bottom line. Even if they’re making these decisions for the sake of efficiency rather than security, it’s still a win on both fronts and at the end of the day, which stakeholder, with that huge responsibility of releasing payments on behalf of a company wouldn’t want peace of mind before releasing payments?
Telecommunications and digital services provider, Globacom, has partnered with the Federal Ministry of Communications, Innovation and Digital Economy and Huawei Nigerian Enterprises, to provide digital access to 7,000 remote communities in Nigeria with the commissioning of the pilot project in Isuanin Kura in Ibwa 2, Gwagwalada, on the outskirts of the Federal Capital Territory, Abuja on Wednesday.
The project, which is championed by the Ministry, will deliver 2G/3G/4G services, free public Wi-Fi access, digital healthcare and remote learning capabilities to the over 12,000 residents of the community.
Minister of Communications, Innovation and Digital Economy, Dr. Bosun Tijani, was full of commendation to Globacom and Huawei for supporting President Bola Tinubu’s commitment to addressing the connectivity crisis affecting more than 20 million Nigerians who currently lack basic telecommunication access in the country.
Said he: “If you bring out your phone in many communities, there is no network at all. This is costing the country significantly because people cannot access financial services, medical care, or education”, adding that this also poses governance challenges as disconnected areas are difficult to administer.
“Where you live should not determine your access to opportunity. We are using innovation to ensure every Nigerian, regardless of location, can thrive in the digital age”, the Minister added.
Globacom’s Group Chief Technical Director, Mr. Sanjib Roy, who spoke on the project said the company worked with the Ministry and Huawei to bring up the site by providing the Microwave backhaul link and access to Globacom’s full core network resources and also manage the operation of the site to ensure uninterrupted voice and data services for the community.
“The Smart Education facility allows for young students within the community to receive education remotely, with the teachers being in Abuja or any other part of the world, while Healthcare delivery has been revolutionised through connected medical equipment that enables remote consultations between patients in Ibwa and doctors and specialists in urban-locations”, Mr Roy explained. The site and all the equipment are powered by solar thereby ensuring clean environment and uninterrupted power supply.
During the inauguration, the system’s effectiveness was demonstrated with the leader of Isuanin Kura, Ibwa 2 Community, Chief Abubakar Bamaiyi, having a live consultation with a medical doctor in Abuja, while the Minister and other guests watched as the students in the local school were being taught via online video by a teacher in Lagos, using equipment provided by Huawei.
Mr Kazeem Kaka, Globacom’s Head of Division, North West, who also spoke at event, said, “For Globacom, this is a continuation of our long-standing mission to democratize access to communication. Since 2003, we have remained at the forefront of efforts to lower the barriers to connectivity—making telephony, internet, and data services more accessible and affordable for all Nigerians.
“Today’s launch reinforces that commitment. We are particularly excited about the impact this initiative will have on education, healthcare, and economic empowerment of Ibwa people”.
In his remarks, Mr Terrens Wu, Managing Director, Huawei Nigerian Enterprises, said his company was proud to be part of the initiative to provide connectivity, and promote learning and healthcare in rural communities through digital technology. His company later gave out 120 affordable smartphones to the community to help them have access to telephony.
National Identity Management Commission (NIMC) has unveiled an ambitious plan to register at least 95% of Nigerians into the National Identity Database before the end of 2025, aligning with President Bola Tinubu’s Renewed Hope Agenda on digital governance and inclusive development.
Speaking at a media briefing in Abuja, NIMC Director-General Abisoye Coker-Odusote outlined the agency’s strategy, which includes expanded registration centers, improved infrastructure, and intensified public sensitization campaigns.
“As part of our efforts, we are launching the Ward Enrollment Exercise to ensure that at least 95% of Nigerians are captured by December,” she stated.
NIMC reported that over 120 million Nigerians have already been enrolled, with the target set to register an additional 100 million before year-end. Coker-Odusote emphasized that the exercise would provide the government with accurate population data, enabling better planning and resource allocation.
Addressing concerns about data security and public trust, the NIMC boss assured Nigerians that robust measures have been put in place to safeguard personal information.
She highlighted initiatives such as the NIN Authentication system, which allows individuals to control access to their data through user consent management.
Additionally, NIMC is collaborating with security agencies to track and shut down fraudulent NIN websites while working alongside the Nigeria Data Protection Commission (NDPC) to ensure that enrollment officers receive proper certification in data handling.
“To foster trust, we are ensuring that all personnel handling data are certified experts through NDPC training programs,” she explained.
Looking ahead, Coker-Odusote revealed that NIMC is actively working to integrate all ministries, departments, and agencies (MDAs) to eliminate fragmented operations.
She also disclosed plans to launch a Public Key Infrastructure (PKI) initiative, which will enhance trust in government transactions and digital interactions.
“In the near future, MDAs will be able to implement digital signing across platforms, seamlessly exchanging documents within and between various establishments, thereby advancing e-government and the digital economy,” she added.
The mass enrollment drive, coupled with the strengthening of cybersecurity frameworks, positions Nigeria for an inclusive and efficient national identity system that will serve as a foundation for digital transformation.
As artificial intelligence (AI) continues to transform the global digital landscape, two prominent technology leaders have issued urgent warnings and strategic calls for Nigeria and Africa to adopt a unified, governance-driven approach to AI development, emphasizing that trust, regulation, and cybersecurity are more important than ever.
L-r: Dr. Krishnan Ranganath, Regional Executive, West Africa, Africa Data Centres, Adewale Obadare, chief visionary officer, Digital Encode, Amrish Singhal, chief operations officer, Spectranet, Engr. Ike Nnamani, Managing Director, Digital Realty Nigeria and Rudman Muhammed, Managing Director, Internet Exchange Point of Nigeria, at the 16th Africa’s Beacon of ICT Merit and Leadership awards held in Lagos recently.
At the 2025 Africa’s Beacon of ICT Merit & Leadership Award (ABoICT 2025), held over the weekend in Lagos, Professor Adewale Peter Obadare, Chief Visionary Officer of Digital Encode, and Amrich Singhal, Chief Operating Officer of Spectranet, independently but powerfully echoed the same sentiment: AI without governance is a ticking time bomb.
Delivering his keynote on “AI Governance, Standardization and Cybersecurity in the AI Era,” Prof. Obadare warned against the rising trend of “AI washing”—where companies label basic software or services as “AI” to capitalize on hype, often without the underlying technological integrity or oversight.
“People are calling everything AI today, from photography apps to basic automation, but no one is talking about AI governance,” he said.
Drawing comparisons to the early days of the internet, Obadare cautioned that failing to integrate security and governance into AI architecture could lead to far-reaching consequences. “We are repeating the same mistake we made with TCP/IP, which was not built with cybersecurity in mind. We cannot afford to make that error again.”
He emphasized that governance should not be seen as a hindrance but as an enabler of safe innovation. “Governance is not a brake to stop movement; it is a brake to make movement safe,” he said.
Citing international standards like ISO/IEC 42001 and ISO/IEC 38507, Obadare called for responsible innovation grounded in clear ethical guidelines, stressing the importance of securing the core components of AI: data, models, and infrastructure.
Echoing similar concerns, Amrich Singhal, chief operating officer, Spectranet in his presentation themed “Responsible AI and Nigeria: Balancing Innovation, Regulation, and Cybersecurity,” stressed that “the countries that will benefit most from AI are not necessarily those with the most powerful models, but those with the most trusted systems.”
Singhal painted AI as a double-edged sword, capable of boosting national productivity while also enabling new forms of cyber manipulation—from deepfakes to identity theft and disinformation. “AI can clone voices, create fake personas, and even undermine democracy. It’s no longer a question of readiness, it’s a question of urgency,” he declared.
He acknowledged Nigeria’s potential due to its youthful, tech-savvy population and its expanding use of AI across sectors like healthcare, agriculture, education, and oil exploration.
However, he criticized existing regulatory structures such as the Nigeria Data Protection Regulation (NDPR) and NITDA’s 2023 draft AI framework as being “underdeveloped, underfunded, and poorly enforced.”
Both experts called for a multi-stakeholder approach to AI governance. Prof. Obadare warned of real-world failures, such as Microsoft’s racist chatbot Tay, Amazon’s gender-biased recruitment AI, and Uber’s fatal autonomous vehicle incident, not as tech failures, but as governance failures.
He also cited cybersecurity breaches, including the 2023 hacking of OpenAI’s ChatGPT and the leak of DeepSeek’s API keys and user data on launch day, to stress that “the danger is not just in the algorithms, but in how we design and deploy them.”
Singhal proposed a three-tiered strategy to build Nigeria’s AI resilience: government must champion AI education, create safe innovation sandboxes, and enforce data laws; private companies must adopt ethical and secure design practices; and civil society must raise awareness of digital rights and AI risks—especially for vulnerable populations.
In a firm conclusion, Prof. Obadare urged that “governance must be embedded by design,” warning that irresponsible innovation has already proven costly and called on both developers and policymakers to act before Nigeria’s AI future becomes a liability rather than a strength.
Meanwhile, Singhal closed with a stark challenge: “AI is already here. The question is not whether to use it, but how. Nigeria must choose whether AI will be a great equalizer or its greatest vulnerability.”
As the nation moves deeper into the AI era, the message is clear: building trust, enforcing cybersecurity, and embedding responsible governance must be at the core of Nigeria’s AI journey, before it’s too late.
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