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Why Nigerian Banks Will Keep Losing Money to e-Fraud
From: InfoSec News <alerts () infosecnews org>
Date: Thu, 21 Nov 2013 06:16:04 +0000 (UTC)
By Ogor Umukoro
21 Nov 2013
The recent loss of money recorded by the Central Bank of Nigeria (CBN) has
not only given researchers a case study but has shown that the acclaimed
tools and techniques currently used by Nigerian banks are not sufficient.
This is regardless of the source of the tool or technique used. As
technology growth is in parallel with the time it is also essential for
every organisation and nation to improve themselves. It is not enough to
get involved with the technology by purchasing gadgets but it is paramount
to keep abreast of all and sundry regarding technology- that is, in this
The lack of awareness by users of Nigerian e-Banking system create a rift
in eliminating the cause of this problem, although some experienced users
protect themselves but the percentage is minimal compared to the incidents
In a paper published by me some months back, I did mention certain causes
of hacking in Africa. Most importantly is the growing use of technology.
Many banks around the world are targeted and a lot have lost money to
e-Theft but the drastic incidentrecovery measure taken, give investors
confidence in these banks. This is a major problem for the growing
Nigerian economy. The protective measures have proven to be insufficient,
not good enough or irrelevant. What is the CBN doing to ensure the
security of customers?
During one of my research visits to Nigerian banks, I was astonished to
hear “we have that in place” when banks were undergoing attacks. Sadly,
you cannot impose help on those who really need help but do not
acknowledge they do. If banks such as World Bank and Bank of America can
look for research students like me to have us use their organisations as
case studies, why will Nigerian banks think they have it all? Truth be
told, we are still a developing country and do not have it all. No nation
or bank does but it is important to know the loopholes and backdoors that
attract these hackers.
Following quite recent news in one of the Nigerian online media, it was
quite interesting to read about a Nigerian hacker. A young Nigerian
student who stole couple of thousands from a bank account to purchase some
petty items was an intriguing case to read. What was most appalling
however, was the knowledge that he had been arrested. True he is a thief,
but Microsoft for instance, regards these thieves as assets. They get
these guys to break into their system, do not report them to the
authorities, in the end give them some stipend and little treat to say
“thank you for showing us how you do it; we will now block you all from
further entry and theft”. Where is our sense of “quick-thinking”? It is
not always about behind bars but about what to do to stop further problems
of this nature.
Dean Bushmiller teaches a great 5-Day CISM in Albany NY Dec. 2 6.
Call 327-937-9786 for details.
- Why Nigerian Banks Will Keep Losing Money to e-Fraud InfoSec News (Nov 21)