IT Firm Tasks Businesses on Cyber Security

The President of MAXUT Consulting, Michael Odusami, on Wednesday urged businesses and the banking sector to ensure the safety of their online transactions.

Odusami gave the advice during the ``Cyber Security and Banking Fraud Summit 2016’’ held in Lagos.

The summit was organised by MAXUT Consulting, an Information Technology (IT) firm in collaboration with Vasco, an Authentication Company.

He said that online fraud level was increasing; hence, authentication of the online transaction identity had become much important.

According to him, the recent trend is that customers’ interactions with the banks are changing, thereby interacting more through electronic payment systems like the ATM and POS, among others.

``People want to do things more online. The statistics now is that people visit the bank branch just one to two times per year.

``They visit the ATM about three to five times per month; call centres five to 10 times per month; and use the desktop about seven to 10 times per month.

``And use the mobile phone to do transactions for 20 to 30 times per month,’’ he said.

Odusami said that mobile threats were real, as 60 per cent of mobile phone malware were specifically targeted at financial information on the devices, as there were security issues with mobile phones.

He noted that the security challenges continued to increase through the rise of financial technology-driven providers entering the financial arena for simple financial services, enabled by digital revolution.

``With more financial services being offered via the web, mobile will increase the target surface of cyber threats and frauds,'' the MAXUT president said.

According to him, one of the increasing fraud risks and threats facing the banks is the insiders’ link, which is inimical to any cyber security defense.

The Area Sales Manager Banking, France, Luxembourg, Africa, Mr Nicolas Poire, said that mobile was the epicentre of the new banking habits.

Poire said that customers' interactions were increasingly moving to mobile platform and the banking market was looking for frictionless and passwordless for authentication.

He said that there was the need to balance security with users' convenience.

According to him, one of the main damages that online crime does to bank is damage to reputation, which will take about 10 years to recover.

He added that of the fraud committed, 67 per cent were discovered by the victims themselves, while 25 per cent were discovered by the banks.

Mr Ade Shonubi, the Managing Director of the Nigeria Inter-Bank Settlement System Plc., (NIBSS), called on banks to be aware of the online troubles befalling them.

Shonubi said that in few years time, banks would no longer be in for retail lending, as they would focus on corporate lending.

He said that such would create more rooms for the financial technology-driven practitioners, who would go for the unbanked.

Mr Dipo Fatokun, Director, Banking and Payments Systems Department of the Central Bank of Nigeria (CBN), said that the fraud happening in the financial system needed to be addressed.

Fatokun, who was represented Mr Sola Agboola, an Assistant Director, Banking and Payments Systems Department of the CBN, said the apex bank was working on new strategies to further secure the banking sector.

He said that the CBN had extended its collaboration to the law enforcement agencies, the Consumer Protection Council (CPC), the Judiciary and others, for a safe and secured banking environment.