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Financial losses to cybercrimes on steady rise to N198b


Minister of Communication, Adebayo Shittu.

Insider threat accounts for 30% of challenges

Financial losses to cybercrimes in Nigeria appeared unabated, as the menace increased by 35 per cent between 2016 and 2017, according to the 2017 Nigeria Cyber Security Report. The Minister of Communications, Adebayo Shittu, had in 2016, revealed based on statistics made available to him that the country was loosing N127 billion yearly to the menace.
However, latest study, compiled by Serianu Limited and Demadiur Systems Limited, has confirmed a 35 per cent increase in the losses, which currently stood at $649 million (N198.6 billion).
The report revealed that the banking and telecommunications sectors were the worst hit.The study, whose methodology included survey and interviews; cyber threat intelligence gathering; analysis of malicious threat data and detailed analysis and reporting, revealed that Insider Threat accounted for the highest loss with 30 per cent ($194 million).


Also, attacks on computer systems (unauthorised access and malware) accounted for 20 per cent ($130 million); Social Engineering and Identity Theft at 15 per cent, amounted to $97 million losses).Others are eMail spam and phishing 12 per cent ($78 million); data exfiltration with 10 per cent loss took away $65 million; online fraud scams had eight per cent with $52 million losses. Ransomware with five per cent attack took away $33 million from Nigeria.

The study noted that over 90 per cent of Nigerian organizations are operating below the security poverty line significantly exposing themselves to cyber security risks.It disclosed that 81 per cent of cyber security incidents either go unreported or unresolved, adding: “Over 90 per cent of the people affected by Cyber bullying ranged from the common citizen to media personalities and even government officials.”

It also revealed that fake news has hit Nigeria’s media stream. Further analysis of the data showed that Africa accounted for N3.5 billion losses in 2017, with Nigeria recording the highest. Nigeria was followed by Kenya with $210 million; Tanzania was next with $99.5 million; Uganda recorded $76 million and Ghana had $54 million.

Presenting the summary of the report, the Chief Executive Officer of Demadiur Systems Limited, Ikechukwu Nnamani, lamented that the financial loss was far higher than the $649million captured in the report because so many of the individual and corporate victims never came out to own up.He said the country is the lowest in cyber security per person, adding that there’s serious dearth of cyber security personnel in the country.
According to him, the report also showed that there is 90 per cent cyber bullying in the country.He reiterated that insider threats remained the highest in the cyber security ecosystem, adding that the Central Bank of Nigeria (CBN) had to intervene in eTranzact because its platform was used to siphon N11 billion through a financial institution.

He urged all stakeholders in the information communication technology (ICT) ecosystem to brace for more attacks on the mobile phone. This he said would come as a result of the collaborative moves by the CBN and the Nigerian Communications Commission (NCC) to deepen mobile money scheme in the country. He said that while cyber thieves are getting smarter, victims are getting greedily by the day.


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Adebayo ShittuCybercrimes
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