Nigeria: New report shows banks have lost N199 billion to e-fraud

Jul 22, 2015

Hackers use email spamming and 'defacement attacks'.

Nigerian banks have lost a total of N199 billion (€921.3 million) to e-fraud between 2000 and 2014, according to a new report from global e-fraud protection firm Easy Solutions Ltd.

Findings show that electronic fraudsters have deployed over 185 fake mobile applications across the websites of 15 out of 17 deposit money banks with which they are extracting customers' personal and financial information with intent to steal billions of naira from bank accounts.

Other attacks include email spamming targeting both banks' websites and customers' emails in a bid to slow the websites and steal customer financial data.

Easy Solutions also revealed that Nigerian banks are under constant cyber 'defacement attacks', when fraudsters change the visual appearance of the site or a webpage.

Director at Easy Solutions Jeremy Boorer also warned about social media: "Banks create social media accounts and ask prospective customers to open bank accounts on these platforms. Fake banks are springing up on social media and the data used to open such accounts… You don't know where it ends up."

Commenting on the findings at an anti-fraud forum in Lagos, the director of banking at the Central Bank of Nigeria (CBN) Dipo Fatokun said that the rise in fraud was a threat to the stability of the banking industry, newspaper The Leadership reports.

He added that the CBN would work with relevant stakeholders to establish an industry security operations centre and a risk information centre in order to reduce e-payments frauds and enhance trust in the payments system.ADNFCR-2976-ID-801795042-ADNFCR