Blessing Ibunge in Port Harcourt
Interswitch, one of Africa’s leading integrated payments and digital commerce companies has disclosed that over N14.3 billion was lost to online financial fraud in 2022.
Business Development Manager, Financial Services Business, Interswitch, Chijioke Eze, disclosed this while speaking on the topic, “Fraud and Cyber Security Challenges in Nigeria,” at a one-day Interswitch financial technology engagement with financial executives in Port Harcourt.
At the Port Harcourt edition of its TechConnect event, Interswitch brought together industry leaders, experts, and stakeholders to explore the transformative impact of digital payments in the microfinance sector
Delivering his paper, Eze said the frauds were done through point of sale (PoS) terminals and ATMs. He noted that, “43 percent of such fraud are caused by external factors, 31 per cent by internal factors while 26 per cent are caused by both external and internal factors.”
In addition, he disclosed that 96 per cent of the fraud that happen were caused by weak control on the part of financial institutions.
According to Eze “Many companies have folded up because of fraud and that is why it should be taken very serious. You need to take cyber security matters serious.
“Without the appropriate preventive, detective and remedial control strategies in place, business risk both fraud losses and reputational damage in 2023 and beyond.
“We need to be on top of security. Ninety-three per cent banking related fraud takes place online and N14.3 billion total fraud attempts made for 2022, of which N14.3billion was actually lost.”
He called for adequate training for staff of financial institutions as part of strategies to tackling financial fraud.
In his keynote address, the Group Head, Financial Services Business, Digital Infrastructure and Managed Services of Interswitch, Tyoyila Aga,
noted that digital payments innovation was big for the microfinance sector as it comes with opportunities for growth and ultimately, financial inclusion, hence the reason Interswitch was at the forefront of driving the growth of digital payments across the country and beyond.
Aga said, “We are excited to have come this far in propagating the good news around what digital payment innovation holds for our microfinance sector.
“At Interswitch, we are all about innovation and as a company committed to driving the digital transformation of Nigeria’s financial services, we are proud to play a leading role in shaping the future of microfinance banking.”
Attendees also gained valuable insights into the technological advancements revolutionising financial services and the potential the innovations hold for financial inclusion and economic empowerment.
The event also featured panel discussions, where industry leaders engaged in conversations on different strategies for growth in the microfinance sector, sharing their perspectives on leveraging digital technologies to drive growth in the financial sector.
This year’s Techconnect series had been hosted in Ibadan, Abuja, Enugu, and most recently Port-Harcourt, with the event train expected to move to Lagos for the final.
