Nkemdilim Uwaje Begho, Managing Director/CEO of Future Software Resources, has underscored the pivotal significance of countering e-fraud on telecom platforms as a critical driver for instilling consumer confidence in the burgeoning digital economy while fostering an environment that is secure and trustworthy.
She made this statement, Thursday, during the 2nd Quarter 2023 Open Forum of the Industry Consumer Advisory Forum (ICAF), organized by the Nigeria Communications Commission (NCC).
The rise of the digital economy has brought significant changes to the way we conduct business, communicate, and access services, with the telecom industry playing a vital role. However, as the digital landscape expands, so does the threat of e-fraud, posing a significant challenge for both consumers and telecom service providers.
Nkemdilim explained that e-fraud encompasses various fraudulent activities, including identity theft, phishing scams, SIM card cloning, and unauthorized transactions, which can result in financial losses and compromised personal information.
Due to its vast customer base and the increasing reliance on mobile devices, the telecom industry is particularly vulnerable to e-fraud, making it essential to address this issue.
Statistics
In Nigeria, e-fraud has had a significant impact. The Nigeria Electronic Fraud Forum (NeFF) reported a 63% increase in electronic fraud cases in 2020 compared to the previous year.
The Nigerian Communications Commission (NCC) recorded over 10,000 cases of telecoms-related fraud in 2020, including SIM swap fraud and fraudulent mobile banking transactions.
According to the Central Bank of Nigeria (CBN), e-fraud accounted for over 90% of all reported fraud cases in the Nigerian banking sector in 2020. Shockingly, the Nigerian Interbank Settlement System (NIBSS) revealed that 59% of Nigerian e-banking customers have fallen victim to fraud.
Challenges
Combatting e-fraud presents several challenges, with fraudsters becoming increasingly sophisticated and exploiting vulnerabilities in technology for their illicit activities. Telcos doubling as mobile money operators further increase the risk for non-digitally literate customers.
According to Nkemdilim, many consumers lack the necessary knowledge and awareness to protect themselves from e-fraud, making them easy targets. Additionally, insufficient collaboration among stakeholders, including telcos, consumers, law enforcement, and regulators, hampers effective prevention and response efforts.
The current regulations may also not be comprehensive enough to address the evolving nature of e-fraud, leaving gaps that fraudsters exploit.
Mitigating Risks
To mitigate this threat, Nkemdilim emphasized the importance of collaboration and information sharing. Building consumer confidence in the digital economy requires a collaborative approach among various stakeholders and telecom providers.
She urged regulators to implement policies that facilitate collaboration, enabling telecom companies, government bodies, financial institutions, and law enforcement agencies to share information, intelligence, and best practices.
Establishing formal mechanisms and platforms for collaboration will enhance the collective efforts to combat e-fraud and create a safer digital environment for all, she said.
