CBN moves to checkmate cyber crime with new framework

The Central Bank of Nigeria (CBN) said it was developing a Risk Based Cyber Security Framework for banks and payment service providers to combat internet fraud in the country. The Central Bank Governor, Mr Godwin Emefiele, said this in Abuja at the 2018 Nigeria-JP Morgan Chase Cyber Security Conference. Emefiele, who was represented by the Deputy-Governor, Financial System Stability, Mrs Aisha Ahmad, said the framework would ensure appropriate cyber security of data in Nigeria’s banking system.

“Technology has transformed the way we learn, communicate, deliver services, conduct financial transactions and even experience entertainment. However, these new conveniences of modern technology have ushered in complex security challenges and cybercrime. These range from identity and intellectual property theft, phishing, email spamming, virus dissemination to sophisticated hacking and theft by digital crime syndicates. A recent study by the IMF estimated global annual losses from cyber-attacks to be close to nine per cent of banks’ net income or around 100 billion dollars,” he said.

Emefiele reiterated the CBN’s commitment to strengthening the regulatory and supervisory framework for cyber risk in the country. Mr John Ayoh, the Director, Information and Communication Technology Department in CBN, said that the CBN had a strong cyber-security model in place to protect its systems against attacks. He said the CBN had improved its technology expertise to ensure that computers and other devices used by its staff could not be easily hacked. In addition, he said that the payment system, particularly the Society for Worldwide Interbank Financial Telecommunication, had also been reviewed to ensure security of the financial system.

Mr Folashodun Shonubi, the Managing Director of Nigeria Inter-Bank Settlement System (NIBSS), assured Nigerians of the safety of the electronic payment system in Nigeria. “Looking at the likelihood of fraud, it is actually lower if you use electronic means for transactions and payments. imagine you are in a bus and someone took your wallet, it’s almost impossible to identify the culprit. However, if it’s your ATM card, every transaction made with the card can be traced which can lead to the arrest of the culprit,” he said. According to the 2017 Nigeria Cyber Security Report, the country was losing about N127 billion yearly due to cyber crimes.