The defendants, identified as Morufu Adeyinka and Henry Ogisi, were convicted for their roles in a industrial-scale fraud network that operated between 2018 and 2021.

The scheme relied on the high-tech manipulation of corporate communication channels to divert legitimate business payments into accounts controlled by the criminal syndicate.

The Anatomy of the ‘Invoice Redirect’

The prosecution detailed a highly organized workflow. The fraudsters utilized phishing and malware to gain unauthorized access to the email servers of various companies. Once inside, they monitored ongoing business transactions, specifically waiting for high-value invoices to be issued.

Using the stolen information, they would send spoofed emails to the paying clients, claiming that the company’s bank details had changed.

The unsuspecting clients would then transfer funds ranging from a few thousand to hundreds of thousands of Euros, directly into mule accounts managed by Adeyinka and Ogisi in Ireland.

Scale and Sentencing

The court heard that the syndicate successfully defrauded approximately 150 victims across multiple jurisdictions, including Ireland, the UK, and the United States.

While the total attempted fraud exceeded €6 million, investigators were able to trace and recover a portion of the funds through rapid inter-bank cooperation.

Morufu Adeyinka was sentenced to 9 years for his lead role in managing the digital infrastructure and recruiting “money mules.”

Henry Ogisi received a 7-year sentence for his involvement in the laundering and distribution of the stolen proceeds.

A Warning for the Digital Economy

Presiding Judge Martin Nolan noted that the severity of the sentence reflects the devastating impact such crimes have on business trust and the broader digital economy. He emphasized that the complexity of the digital tools used required a significant deterrent.

This case highlights that BEC remains one of the most lucrative and dangerous forms of cybercrime.

As Nigerian businesses increasingly integrate into the global digital market, the social engineering tactics used by these syndicates serve as a cautionary tale.

It also showcases the efficiency of the Garda National Economic Crime Bureau (GNECB) and international law enforcement in tracking digital footprints across borders.

To this end, the Commission has cautioned various the consumers to stay on the alert while using products and services across telecom platforms.

Mr. Alkasim Umar, the Director, Consumer Protection and Advocacy Unit, Consumer Affairs Bureau of the Commission, sent the warning during a sensitisation programme in Abakaliki, the Ebonyi State capital.

At the event tagged: ‘Shine Your Eyes-No Fall Mugu’, Umar noted that as part of the strategy to actualise the protection and promotion of the interest of consumers, the department collaborates with Consumer Advocacy Groups and relevant stakeholders to empower telecoms consumers with the knowledge and advocate for their protection within the telecoms industry.

The director, who was represented by Clems Omeife, the Head of Consumer Advocacy and Production Unit of NCC, said the development and deployment of robust infrastructure to support innovative technologies and services have no doubt positively transformed our socio-economic space.

According to him, “As the telecom industry evolves, there is a growing concern over the rising trend of fraud perpetuated on telecom platform (electronic fraud) across key sectors of the Nigerian economy.

“The menace that follows the wide acceptance of new methods of mobile money electronic banking and payment systems has been discovered to cost the country a whopping amount of money.

“Cyber criminals are targeting telecoms networks, interrupting service provision and accessing bank data. Victims are often left with enormous losses from SIM swaps and USSD e-payment frauds.

“The Central Bank of Nigeria (CBN) has identified electronic fraud as the biggest risk to the sector, which has embraced a range of electronic payment solutions, including Automated Teller Machines (ATMs), Nigeria Inter-Bank Settlement System (NIBBS), instant payment as well as mobile banking.

“A lot of people are highly ignorant of how losing their phones to fraudsters can lead to a complete clean-up of their bank accounts. These fraudsters do this by stealing victims’ identities, names, addresses, and bank information, which they use to gain access to their bank accounts.

“They also use the stolen identity to defraud other people and even apply for loans, leaving the victim with debts. It is in view of this and in line with the commission’s consumer-centric posture that the commission in collaboration with relevant advocacy groups embarked on the sensitisation programme tagged: ‘Shine Your Eyes, No Fall Mugu’, across the six geopolitical zones in the country,” he said.

Umar stated that the commission also collaborated with critical stakeholders such as the Central Bank of Nigeria (CBN), the Nigerian Police Force, the Economic and Financial Crimes Commission (EFCC), the Independent Corrupt Practices Commission (ICPC) and other relevant agencies in the fight against e-banking fraudsters.

He further advised telecom consumers to be vigilant and cautious when it comes to financial transactions on the telecom platform as fraud can occur through various channels, including unsolicited text messages, voice calls, emails, and fake mobile applications. (THISDAY)

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While addressing the participants at the 2nd Quarter 2023 Industry Consumer Advisory Forum (ICAF) meeting, Professor Danbatta, highlighted the critical importance of combating e-fraud on telecom platforms and building consumer confidence in the digital economy.

He underscored the need for collaborative efforts among industry stakeholders, regulatory bodies, law enforcement agencies, and consumers to safeguard against fraudulent activities and protect Nigeria’s digital ecosystem.

Prof. Danbatta in his speech titled: “Combating E-fraud On Telecom Platforms And Building Consumer Confidence In The Digital Economy,” emphasized that Nigeria’s digital economy presents significant opportunities for growth and diversification.

However, the proliferation of e-fraud and cybersecurity concerns pose challenges to the transformative potential of the digital landscape. Various forms of e-fraud, such as identity theft, phishing, hacking, and unauthorized access, not only cause substantial financial losses but also erode consumer trust in the digital realm.

The NCC, as the regulator of the communications sector, plays a pivotal role in combatting e-fraud. Prof. Danbatta called for the establishment of comprehensive legal frameworks and standards that mandate sound security practices for telecom operators. T

hese frameworks should focus on data protection, privacy, and incident response, holding operators accountable for any security lapses on their networks. He emphasized that the NCC collaborates with mobile network operators to ensure network safety and conducts regular audits and assessments to verify compliance, fostering a culture of cybersecurity within the industry.

Telecom operators were also urged to invest in robust infrastructure, employ state-of-the-art security measures, and conduct regular audits to identify vulnerabilities promptly. Stringent authentication protocols, two-factor authentication, and encryption mechanisms were highlighted as essential safeguards for customer data and preventing unauthorized access.

To address concerns about personal data protection, Prof. Danbatta highlighted the importance of Nigeria’s National Digital Economy Policy and Strategy 2020 – 2030 (NDEPS). Pillar #6 of the NDEPS, which focuses on soft infrastructure, addresses cybersecurity standards, frameworks, and guidelines.

The recently enacted Nigeria Data Protection Act 2023 provides a legal framework for personal information protection, regulating its processing. The NCC is also developing comprehensive Data Protection Regulations specific to the communications sector.

Prof. Danbatta stressed the significance of collaboration among law enforcement agencies, telecom operators, and regulatory bodies to investigate and prosecute e-fraud perpetrators. Enhanced coordination, information sharing, and dedicated cybercrime units were cited as effective deterrents against cyber criminals.

The NCC, through its Consumer Affairs Bureau (CAB), has been actively engaged in protecting, informing, and educating telecom consumers. The NCC’s Computer Security Incident Response Team (NCC-CSIRT) provides timely advisories on cybersecurity threats, equipping consumers with the knowledge to avoid falling victim to cyber-attacks.

Prof. Danbatta encouraged telecom operators to educate their customers, promptly address concerns, and emphasize transparency and accountability in their security measures and incident response mechanisms.

The speech highlighted the importance of consumer awareness, digital literacy, and fostering innovation in security technologies. He encouraged the consumers to actively participate in protecting themselves while urging telecom operators to guide secure online practices and user-friendly tools to monitor and manage accounts.

Further, he said collaboration between academia, industry, and research institutions was emphasized to drive innovation in cybersecurity and countermeasures against e-fraud.

In closing, Prof. Danbatta called for a collective effort to combat e-fraud and build a secure digital ecosystem.