By RARZACK OLAEGBE
A crisis does not occur suddenly. It does not burst like a volcano. Instead, it develops slowly. It is similar to a leaking oil pipe before an explosion. It resembles the cracks on a wall before it eventually collapses. If an experienced mason does not intervene and seal the cracks, the wall’s fall will be worse than the story of Humpty Dumpty.
On the one hand
Nigeria’s fintech payment boom—one of Africa’s digital powerhouses—is confronting increasing cybersecurity threats. The support from banks, fintechs, payment service providers [PSPs], mobile money operators, payment service banks [PSBs], millions of mobile phone users, and user-friendly apps has turned electronic payments into a movement. This movement influences daily life. Threatening this movement is fraud. For instance, the Nigeria Inter Bank Settlement System’s annual fraud report revealed that in 2023 alone, attempted fraud increased by 45 per cent.
On the other hand
The report shows that mobile and online platforms were the most exploited modes. Bank customers lost billions of naira. Many customers did not report the matter. Research showed that cyber-criminals are exploiting weak systems, lax regulations, and limited consumer awareness to perpetrate sophisticated fraud schemes. If you have been a victim of cybersecurity fraud, accept my sympathy.
In the long term
This fraud has lingered because we lack enough cybersecurity awareness. Because many bank customers still do the following: Click on a phishing link. Reply to emails requesting their login credentials. Answer spurious phone calls from ‘your bank’ manager. Open fake fintech apps. The report says mobile and online channels are the weakest links. Bank customers have lost billions of naira. These fraudulent cases went unreported because fraud-reporting systems are fragmented. Customers do not get quick resolutions. Therefore, one four-letter word that has stopped victims from pursuing fraudulent financial matters is T.I.M.E.
For instance, you have cancelled an online subscription. The merchant did not stop the monthly deduction. Your bank promised to investigate the case in eight working days. Two weeks, approximately. The other day, you visited the office of the special anti-fraud unit of the Nigerian Police. The investigating officer demanded a petition.
Then he needed payment to issue a warrant of arrest. He needed the warrant to apprehend the suspect. He needed time to investigate the case. Time cannot wait. The time you spend pursuing a case is enough to build a fintech unicorn! This is why many cases are unreported. The victims simply moved on. Licked their wounds. They might be sceptical about returning to e-payment.
In the short term
If the brewing crisis is not nipped in the bud, and e-payment fraud persists, the gains of the cashless policy may evaporate. The interest of bank customers may wane. Financial inclusion may become a financial delusion.
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