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Understanding the Risks of Insecure Payment Processing

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By Gideon Ayogu

Businesses across the world are losing customers and huge sums due to a rise in payment fraud in the last few years. A recent report highlights an alarming 88% global increase in payment fraud between December 2021 and March 2023.  In an ever-evolving digital world, payment processing is at the heart of every business transaction. However, each transaction carries significant risks that must be effectively managed and mitigated. Consequently, ensuring robust security in payment processing has never been more critical.

With the increasing sophistication of payment fraud, many businesses are becoming targets for hackers and cybercriminals who exploit insecure payment processing systems. These attacks can lead to severe consequences, including financial losses, reputational damage, legal repercussions and a significant loss of customer trust.

This SeerBit blog post highlights the potential risks and consequences of neglecting security in payment systems and emphasises the importance of partnering with a trusted payment solutions provider to effectively mitigate these risks.

Potential Consequences Of Insecure Payment Systems

There are numerous consequences that your business will suffer if you become a victim of fraud due to insecure payment systems. Some of these are discussed below:

  • Financial Losses

The lack of strong security measures in your payment systems can leave your business vulnerable to a wide range of fraud, including unauthorised transactions, identity theft, and credit/debit card fraud. These threats often lead to significant financial losses for businesses. A 2023 report by IBM revealed that the average global cost of a data breach has risen to $4.45 million, covering both direct expenses like fines and legal fees, as well as indirect costs such as customer attrition and lost business opportunities.

In 2023, three Nigerian fintech companies lost more than N5 billion to hacking incidents between Q1 and Q3 of the year, while another lost N800 in just one week, according to media reports. These alarming incidents highlight significant vulnerabilities within the security architecture of payment systems.

The rise in security breaches and fraud cases in recent years, along with businesses being compromised through their connections to insecure platforms, underscores the critical importance of secure payment processing. This highlights the need for businesses to partner with a trusted payment solutions provider.

  • Reputational Damage

Reputational damage from a data breach or fraud often has a longer-lasting impact than the immediate financial losses. Today’s customers are more aware and concerned about the security of their personal and financial information than ever before.

A single breach can severely undermine customer trust, leading to decreased sales and long-term brand damage. Regaining this trust can be extremely challenging, if not impossible, for many businesses. This loss of customers and revenue underscores why secure payment systems are crucial for business survival and growth.

  • Legal Repercussions

Businesses that experience a security breach or fall victim to fraud may face significant legal repercussions, many of which could be avoidable. In cases of payment fraud, affected stakeholders might sue the business, or the business may need to engage in expensive legal proceedings against those responsible.

Additionally, a security breach could indicate non-compliance with industry best practices or current security standards, such as PCI DSS (Payment Card Industry Data Security Standards), potentially resulting in substantial fines and other legal consequences.

How To Secure Your Payment Process And Protect Your Business Against Fraud

The operational disruption that a fraudulent activity or a breach of your security system can cause will lead to a loss of productivity and efficiency, alongside other consequences already discussed in this post. Hence, you should place a premium on securing your payment process and protecting your business against fraud. One of the best ways to achieve this is by relying on a secure payment gateway.

A payment gateway is a technology that captures and transfers payment data from the customer to the acquiring bank. It acts as an intermediary between your business website and the financial institution, ensuring the secure transfer of sensitive payment information. Payment gateways authorise payments for e-transactions, enabling businesses to securely accept credit card payments, digital wallets, and other forms of online payment.

Key Security Features of Payment Gateways

Below are some of the key security features a payment gateway must incorporate to ensure secure transactions:

  1. Encryption and SSL: Encryption converts data into a secure code to prevent unauthorised access. Secure Socket Layer (SSL) certificates ensure that data transferred between the customer and the merchant is encrypted and secure.
  2. Tokenization: Tokenization replaces sensitive payment information with a unique identifier or token. This token is used during transactions, keeping the actual payment data secure and reducing the risk of data breaches.
  3. PCI DSS Compliance: The Payment Card Industry Data Security Standard (PCI DSS) sets security standards for organisations handling credit card information. Compliance with PCI DSS ensures that payment gateways adhere to stringent security measures to protect cardholder data.
  4. Fraud Detection and Prevention Tools: Advanced tools such as CVV verification, address verification, and AI-based fraud detection systems help identify and prevent fraudulent transactions, safeguarding both businesses and customers.
  5. Trustworthiness: Ensure that the payment gateway has a proven track record and industry certifications to back up its claims of security and reliability.

When selecting a payment gateway for your business, it is crucial to prioritise these key features before trusting them to process your transactions.  A secure payment gateway ensures that your payment systems and processing are secure and insulates your business from fraud and hacking attacks.

Payment gateways lacking these essential features should not be considered for your business.

Benefits of Secure Payment Gateways for Businesses

A secure payment gateway such as SeerBit offers numerous benefits for businesses:

  1. Enhanced Customer Trust and Satisfaction: A secure payment gateway builds customer confidence, encouraging repeat purchases and fostering loyalty.
  2. Reduced Fraud and Chargebacks: By minimising fraud-related losses and reducing chargebacks, businesses can protect their revenue and maintain financial stability.
  3. Regulatory Compliance: Secure payment gateways ensure compliance with legal and regulatory standards, helping businesses avoid penalties and legal issues.
  4. Competitive Advantage: Prioritising security can serve as a unique selling point, setting businesses apart from competitors and attracting security-conscious customers.
Conclusion

In today’s digital economy, the impact of a security breach or payment fraud can be devastating for businesses. As the digital landscape evolves, so do the risks associated with it, making it crucial for businesses to choose secure payment systems proactively. Secure payment gateways are vital for maintaining both the success and credibility of any business in the modern digital age. By prioritising robust security measures, businesses can safeguard themselves and their customers, build trust, and ensure seamless transactions.

At SeerBit, we are committed to providing top-tier security to protect your business and customer data, while also delivering a smooth and efficient payment experience.

 Discover how we can enhance your payment processes today!

 

 


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Ugo Onwuaso is an ICT enthusiast. He believes technology should be used for general good. He holds a Master of Public Administration (MPA) degree from the Lagos state University. Dear Reader, Your support matters. But we believe that technology makes life more exciting and helps improve the lives of people around Nigeria and indeed the world. That is why, we have devoted our energy to independent reportage of technology and finance and how they affect lives. Our incisive and analytical view of how technology news affects the daily life help individuals and organizations make up their minds. Quality journalism costs money. Today, we're asking that you support us to do more. Kindly support our effort to deliver technology and finance journalism to everyone in the world. Donate as little as N1,000. Bank transfers can be made to: UBA Plc 1017156876 Communication Week Media Ltd

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5 Things You Absolutely Need to Know About BBNaija Season 10

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Big Brother Naija is set to make a grand return for its landmark 10th season, promising even more excitement and drama for fans across Nigeria.
As anticipation builds for a fresh lineup of housemates, viewers can also look forward to the upcoming BBNaija Season 9 Reunion, which will revisit the memorable moments and unresolved tensions from the last “No Loose Guard” season. With both the reunion and a brand-new season on the horizon, BBNaija is gearing up to deliver a double dose of entertainment that will keep audiences captivated. Here are five things you need to know about the new season:
It’s the First In-Person Audition Since the Pandemic
For the first time since 2020, BBNaija is reigniting the energy of in-person auditions. This pivotal shift echoes the fervor of pre-pandemic seasons, where aspiring housemates queued for hours, showcasing their personalities and dreams firsthand. In Season 5 (Lockdown, 2020), all auditions were virtual, a necessity that continued through Seasons 6 (Shine Ya Eye, 2021), 7 (Level Up, 2022), 8 (All Stars, 2023), and 9 (Pepper Dem Reunion & Pepper Dem, 2019). The return to physical auditions for Season 10 signifies a reconnection with the raw, unfiltered energy that defined the early years of BBNaija, potentially leading to even more dynamic and memorable personalities entering the house.
This Is the Landmark 10th Season
This is the tenth season of the biggest reality TV franchise in Africa. BBNaija continues to lead conversations across Nigeria and Africa. Each season has delivered iconic moments, from unforgettable rivalries to heartwarming alliances, drawing massive viewership. Season 10 aims to celebrate this legacy while ushering in a new era of drama, surprises, and unforgettable personalities.
Auditions Are Completely Free
Just like in previous seasons, the auditions for Season 10 are entirely free. This commitment to accessibility ensures that talent from all walks of life have the opportunity to step into the BBNaija spotlight.
BBNaija Is A Life Changer
The impact BBNaija has on the lives of participants is undeniable. It is best known for launching young Nigerians into stardom. Numerous successful careers, especially in entertainment, started from Big Brother Naija; think Ebuka Obi-Uchendu, Tobi Bakare, Bisola Aiyeola, Neo Akpofure, Mike Edwards, and many more. It is one of the most trusted routes to a better life for many Nigerian youth as it gives a platform to showcase talent, personality and more.
What Fresh Twists Will Biggie Unveil?
The show is renowned for its innovative and engaging twists that keep both housemates and viewers on their toes. Over the years, we’ve witnessed game-changing introductions such as having two houses operating simultaneously, the mysterious presence of Ninjas, the strategic deployment of fake housemates, the dynamic of competing in pairs, and even a talkative parrot that influenced alliances. As we approach the landmark 10th season, we look forward to the new and exciting elements “Biggie” will introduce to shake up the game.
Season 10 isn’t just another chapter in BBNaija’s story, it’s a celebration. Don’t miss your moment. Follow Africa Magic across social media and stay tuned to DStv for the latest updates.

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E-commerce Lessons for Scaling Nigeria’s Food Distribution

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By Diana Tenebe, Chief Operating Officer, Foodstuff Store

Nigeria stands at the cusp of an agricultural revolution with the ambitious plan to significantly transform its food and agriculture sector through the launch of the $510 million Special Agro-Industrial Processing Zones (SAPZ), financed by the African Development Bank and development partners. Fueled by the integration of cutting-edge technologies aimed at boosting food production and ensuring national food security. However, as yields increase, a formidable hurdle remains: the efficient and scalable distribution of this bounty across the nation’s diverse landscapes, often hampered by infrastructural limitations and logistical complexities.

Dr. Bosun Tijani, the Minister of Communication, Innovation, and Digital Economy, recently called on Nigerian farmers to prepare for digital and technologically advanced farming methods, emphasising their crucial role in boosting food production and security. Building upon this call for technological integration, and to truly unlock the full potential of Nigerian agriculture and ensure increased harvests translate to accessible and affordable food for all, the sector can draw invaluable lessons from the operational prowess of e-commerce giants like Amazon. Their success in navigating complex logistics and reaching vast customer bases offers a compelling blueprint for transforming Nigeria’s food distribution network.

Amazon’s dominance in the e-commerce realm is underpinned by a meticulously crafted logistics and supply chain system. Their significant investments in sprawling fulfillment networks, coupled with the strategic deployment of technology for route optimisation and real-time inventory tracking, have created an unparalleled engine for moving goods swiftly and efficiently. Furthermore, their optimisation of last-mile delivery, integration of automation within warehouses, and a hybrid approach blending in-house capabilities with shrewd partnerships underscore their commitment to scalability. This intricate ecosystem is designed to handle massive volumes and adapt to fluctuating demands – a crucial capability that Nigeria’s agricultural sector desperately needs.

Translating these principles to the Nigerian context requires a fundamental shift towards building a resilient delivery infrastructure specifically tailored for agricultural produce. This necessitates moving beyond traditional, often inefficient methods and embracing hybrid transportation models that account for varying road conditions and geographical challenges. Imagine a network that leverages a combination of refrigerated trucks for long-haul transport, smaller vehicles for navigating local terrains, and even innovative solutions like riverine transport where feasible. Integrating technologies like GPS tracking for real-time visibility of produce movement and strategically establishing a network of collection and distribution hubs across key agricultural zones can significantly streamline the flow of goods.

Implementing robust systems for real-time tracking of harvests and produce, mirroring Amazon’s inventory management, will be crucial in minimising spoilage and maximizing freshness as food travels from farm to consumer. Moreover, forging strategic alliances with existing local logistics providers, leveraging their on-the-ground knowledge and infrastructure, can provide a vital springboard for building a comprehensive network without starting entirely from scratch.

Beyond the physical movement of goods, the power of data, a cornerstone of Amazon’s success, holds immense potential for revolutionising Nigerian food distribution. Leveraging data analytics can provide invaluable insights into regional demand patterns, allowing for more accurate forecasting of optimal harvest and distribution times. This data-driven approach can help match agricultural supply with consumer needs with greater precision, reducing waste and ensuring that the right produce reaches the right markets at the right time – much like Amazon utilizes data for personalized recommendations and understanding customer purchase behavior. Imagine farmers making informed decisions about planting based on predicted market demands or logistics providers optimizing routes based on real-time demand fluctuations.

Furthermore, adopting Amazon’s unwavering focus on customer convenience and trust is paramount, especially when dealing with perishable goods. Establishing reliable delivery schedules, ensuring the quality and freshness of produce upon arrival, and implementing transparent processes throughout the supply chain are crucial for building confidence among both farmers and consumers. This might involve implementing quality control measures at various stages, providing clear communication about delivery timelines, and potentially even exploring traceability systems that allow consumers to understand the journey of their food.

Finally, navigating the complexities and dynamism of the Nigerian market demands a long-term vision and a high degree of adaptability, mirroring Amazon’s sustained focus and agility in the ever-evolving e-commerce landscape. The Nigerian agricultural sector must be prepared to iterate, learn from its experiences, and continuously refine its distribution strategies in response to local challenges and opportunities. This requires a collaborative approach involving government agencies, agricultural organisations, technology providers, and logistics companies working together to build a sustainable and efficient food distribution ecosystem.

By strategically adapting these e-commerce-inspired lessons in logistics, technology adoption, data-driven decision-making, and customer focus to the unique context of Nigerian agriculture, the nation can forge a distribution system capable of efficiently handling increased production. This transformative approach is not merely about moving food; it’s about ensuring that the fruits of Nigeria’s agricultural advancements reach every corner of the country, contributing significantly to food security, mitigating the rising cost of food, and ultimately cultivating a thriving and efficient agricultural future for all Nigerians.


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Afreximbank Unveils Third Edition of Short Film Competition ‘Creative Africa Nexus’

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Creative Africa Nexus (CANEX), an intervention by African Export–Import Bank (Afreximbank) has announced the third edition of its vibrant short film competition, CANEX Shorts, that is designed to recognise and celebrate talents of young filmmakers from Africa and the Diaspora.

Filmmakers between the ages of 18 and 35 years can enter the competition for a chance to win a cash prize of $2,000 for outstanding work in each of the competition’s three categories: Best Fiction, Best Documentary, and Best Animation.

To be eligible, they must be Africans living on the continent, in the diaspora or the Caribbean. Each filmmaker can only enter one film for which they must hold all rights. The entered films should have been produced in 2023 or after and can be in any language.

Besides the cash prize, CANEX Shorts winners will also get an opportunity to participate and have their films screened at CANEX at IATF2025, which will take place in Algiers, Algeria, from September 4th to 10th, 2025, a statement explained.

This will also provide them with a chance to connect with potential investors and partners in what has become the largest gathering of creatives on the continent.

“To enter the competition, filmmakers are required to submit their films, not more than five minutes long, via the Film Freeway digital platform (https://FilmFreeway.com/CANEXShorts). From all entries, the selection committee will curate a shortlist of 30 films – 10 films per category for submission to the jury that comprises, well-respected film experts from across the continent. The jury will then select a winning film in each of the categories during CANEX at IATF2025.

“The 2024 CANEX shorts winners were unveiled at CANEX WKND 2024. The winning films were: Silent Screams by Esenaga Mbwe (Botswana) in the CANEX Shorts Best Fiction category; We Shall Not Forget by Brian Obra (Kenya) in the CANEX Shorts Best Documentary category; and Room-5 by Francis Y. Brown (Ghana) in the CANEX Shorts Best Animation category.

“According to the jury, the quality of films submitted during CANEX WKND 2024 was exceptionally high, necessitating award of two Special Mentions: Vodoun Nouminssin and Rain Is Not the Cloud’s Last Parade,” the statement added.

CANEX at IATF2025, where the winners will be unveiled, would also provide a unique platform for nurturing business, investment opportunities, collaboration, partnerships and inspiration amongst the creatives fraternity across value chains of diverse creative and cultural industries from film, music, and fashion to culinary arts, sports, and visual arts amongst others.

The event participants will include creatives, policymakers, financial institutions, business and political leaders, development partners, thought leaders as well as some of the most respected names in the Creative and Cultural Industries from across the continent and the diaspora.

Highlighting the importance of the competition, Executive Vice President, Intra-African Trade and Export Development at Afreximbank, Mrs. Kanayo Awani  said: “Africa’s film industry, estimated at over $5 billion is thriving and brimming with untapped potential,” adding, “At Afreximbank, we are committed to unlocking this immense value by supporting platforms like CANEX Shorts that aim to propel African storytelling to the global stage. By investing in our creatives, we are not only creating jobs and economic opportunities; we’re actively ensuring Africa’s vibrant culture and talents gain global recognition.”


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