A recent report from the cybersecurity company Kaspersky Security Network revealed that Nigeria’s digital payment space has continued to be the target of ongoing attacks by cybercriminals, with over 161,272 financial threats being recorded. The number of sophisticated attacks on banks and other financial institutions from malware will continue to increase. According to the cybersecurity company, the digital payments ecosystem in Nigeria shows a despairing image, as indicated by the fact that 37% of respondents in the study experienced financial losses in the previous year.
According to the findings, nearly all users of digital payment systems, approximately 97%, have suffered financial losses of up to $1,000 equivalent as a direct result of the risks they faced when using internet-based banking as well as mobile wallet services. During the course of the year, they observed that 3% of the respondents disclosed a loss of over 1,000 dollars, despite the fact that many attacks had been prevented in the nation.
Experts warn users not to discuss their PIN or financial data with anyone.
With the information provided by the company, the assaults were carried out with the intention of collecting sensitive financial data such as credit card numbers as well as login passwords. These types of attacks typically rely on social engineering techniques in order to entice victims. Therefore, they issued a warning that the effects of a cyber threat that targets digital payments, they do not simply impose a financial hardship on customers but also have an effect on the customers’ psychological well-being.
Deep visibility and threat intelligence, according to the report, are essential for protecting customers from assaults and preserving the business’s operations. Experts from Kaspersky recommend that users do not discuss their PIN, Passwords, or any other Financial Information with anyone, whether that person is online or offline. This will help users recognize digital payment technology in a secure manner. In Nigeria’s growing digital payment sector, which has since seen a steady expansion of Fintechs, cyber security remains a challenge that must be addressed.
64% of Nigerian users have witnessed one cyber incident since the pandemic.
Furthermore, Sixty-five percent of Nigerian respondents expressed extreme concern about the possibility of getting their lost funds, and forty-three percent said they now have less confidence in digital payment providers. Eighty percent of victims reported becoming more cautious as a result of the cyber challenge, and sixty-five percent said they had installed antivirus software on their compromised devices. The research also found that 64% of users in Nigeria had at least one incident involving digital payments since the pandemic’s inception.
Emad Haffar, who is the Head of Technical Experts at Kaspersky, also affirmed that this is one of the reasons why it is crucial to know how to engage safely with any emerging technology, which involves the use of mobile wallets as well as online banking services. Additionally, all of the stakeholders, including government agencies, users, online payment service providers, and even cybersecurity firms, need to collaborate in order to develop a payment ecosystem that is both economically viable and secure.
Many African companies do not see cybersecurity as a challenge.
In a separate report, Trend Micro Incorporated, a cyber security company, has forecasted a massive loss of $1.1 billion annually to cybercrooks in Nigeria, South Africa, and Kenya. Kenya has suffered a loss of $36 million. Meanwhile, Nigeria and South Africa have lost $500 million and $570 million respectively. The study decries the fact that where as reputable organizations all over the world anticipated boosting their cybersecurity budgets this year, 90% of African corporations are not taking cybersecurity challenges seriously.
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