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The Rise of Electronic Fraud in Nigeria

posted on May 9, 2019 |   325 likes


17600 Nigerians lost N1.9 Billion to electronic fraudsters in 2018 and eighteen things you can do so as not to be a victim.

According to the Nigeria Electronic Fraud Forum’s (NeFF) recent report, it claimed that in 2018, over 17,000 Nigerians were defrauded electronically. This accounts for a 55% rise in fraud accidents from 2017. Surprisingly, 57% of the fraud victims were youths aged 20 to 39 years while Lagos led the pack in terms of locations where fraud were recorded. Others were Ibadan and Port Harcourt respectively.

As a financial institution, we owe it to our customers to deliver excellent services inclusive of ensuring accounts are safe and secure. This is why our focus for today’s post is electronic fraud and how you can safeguard yourself.

What is electronic fraud, how does it happen and how can you save yourself from being a victim of it?

What is Electronic Fraud and How is it carried Out

Electronic fraud is any attempt to steal, collect or store financial information such as transactions, documents, sign in details etc illegally through an electronic means. Electronic means covers internet, cards, apps, USSD, ATMs and the likes.

In Nigeria, this is best perpetuated by yahoo boys but there is a rise of intelligent individuals who tactfully gain access to one’s financial details as the user unsuspectingly browses websites to make payments, uses an ATM, saves vital financial information like BVN, ATM pins, SMS alerts etc on his or her phone which can be used when the phone gets stolen or hacked.

Another class of fraudsters are kidnappers who request payment through dubious means.

The phenomena has seen an increase because of growing youth unemployment, growing use of internet banking, apps, USSD and the ease with which getting data due to poor security proofing on the part of financial service providers and customers themselves.  

How Not To Become a Victim of Electronic Fraud

Becoming a victim of electronic fraud is easy and can be very unsuspecting. All that is needed is an internet enabled device or platform performing a transaction. To prevent yourself from being a victim, here are eighteen suggested steps you should keep in mind.

  1. Never carry out a transaction on a site you don’t know or trust
  2. Never give your financial details to anyone (not even your bankers)
  3. Always ensure you are using the right app and an updated version too
  4. Use apps that are safe
  5. If in doubt contact your bank via its recognisabe channels
  6. Contact your provider to block your account if you suspect anything
  7. Don’t use an ATM in a lonely or unguarded alley
  8. Review all transactions and monthly statements
  9. Keep your cards safe
  10. Don’t write down pins, codes, passwords or personal financial data
  11.  Use a strong antivirus/antispyware to protect your devices
  12. Be extra careful when using wifi in public places
  13.  Look out for the padlock icon on the url bar of any site you have to make a payment in
  14. Do not respond to emails requesting for sensitive details of your financial life
  15.  Be very careful of the apps, document and files you download online
  16.  When using the ATM ensure no one is looking over your shoulder
  17.  Do not provide direct help to strangers at the ATM point, get bank staff (ATM assistants or gatemen) to assist anyone needing help
  18.  Ensure you carry out transactions in bright places with functioning security cameras

As a safety conscious financial organization, one of the security features we guarantee on our app include a two way security feature which you need to meet when making payments. Login pin and also provision of correct answer your chosen security question. This is so that any customer who needs a quick online loan from us is guaranteed of safety without fears of being defrauded.

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