The report from FITC highlighting the substantial losses suffered by banks due to cyber fraud is a cause for concern in the financial sector. With hackers managing to steal a staggering N53.4 billion in just nine months, it is evident that the activities of cyber criminals are on the rise.
The rise in fraud cases reported by Nigerian banks, showing a 65% increase, is alarming. The attempted theft of N115.9 billion in the third quarter alone represents a 105% surge compared to the previous quarter. The prevalence of Computer/Web fraud, Mobile fraud, and POS-related fraud indicates a worrying trend that has persisted since 2023.
The use of multiple channels, including ATMs, online platforms, bank branches, and POS terminals, by fraudsters highlights the need for increased vigilance across all areas of banking operations. The substantial increase in card-based fraud and cash-related fraud cases underscores the urgent need to tackle these issues head-on.
Dr. Chizor Malize, the Managing Director and CEO of FITC, has stressed the importance of leveraging Artificial Intelligence (AI) to combat the rising cases of cyber threats and digital risks. With technology advancements exacerbating the problem, it is crucial for the financial sector to embrace AI as a tool to mitigate risks and ensure the stability of the financial system.
Collaboration among banks is also essential in the fight against cyber fraud. As highlighted by Mrs. Favour Femi-Oyewole, the Group Chief Information Security Officer of Access Bank, the need for embedded security and the implementation of machine learning is vital to address the growing financial challenges and prevent potential risks. By working together and sharing strategies, banks can better protect themselves and their customers from the ongoing threat of cybercriminals.
