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By Nwakaego Alajemba and Oluwatobi Opusunju
The Central Bank of Nigeria (CBN) is developing a Risk Based Cyber Security Framework for banks and payment service providers to combat internet fraud in the country. According to the CBN Governor, Mr. Godwin Emefiele, yesterday, Thursday in Abuja at the 2018 Nigeria-JP Morgan Chase Cyber Security Conference, these are measures the apex bank is adopting to ensure appropriate cyber security of data in Nigeria’s banking system.
The rising of web and mobile banking has meant faster, more efficient and inclusive banking. But the flipside is that financial transactions have come under the felonious siege of online criminals. Global statistics for cybercrime losses in 2017 hovers over $600 billion to make it a thriving industry for criminals.
“Technology has transformed the way we … conduct financial…. However, these new conveniences of modern technology have ushered in complex security challenges and cybercrime…. These developments have led to a significant rise in the global cost of cybercrime. McAfee and the Center for Strategic and International studies estimate this at over $600 billion in 2017, more than 20 percent higher than in 2014,” said Emefiele who was represented by the Deputy Governor, Financial System Stability, Mrs. Aisha Ahmad.
“Whilst a variety of organizations are exposed to cybercrime, the financial sector is particularly vulnerable given its crucial role of financial intermediation in a highly connected global financial system….
“The increasing cost, velocity and diversity of cyber-attacks have helped to elevate conversations about building robust defense systems to the forefront,” added Emefiele at the event that drew participants from the banking and technology sector focusing on securing the internet.
According to Nigeria’s financial ombudsman, regulator authorities remain “committed to strengthening the regulatory and supervisory framework for cyber risk and encouraging realistic vulnerability testing and contingency planning for regulated institutions.”
“In partnership with stakeholders in the financial industry, we are developing a risk based cyber security framework for deposit money banks and payment service providers and internally, we have relied on instruments of automation, artificial intelligence and machine learning to address the cyber threat landscape we face.”
The CBN obligates on banks and other financial players to continuously upgrade their web security in compliance with best global practice.
“We also realized that we have a unique situation in Nigeria. Most importantly, there is a cyber-capability model – C2M2 – that tells you what the gaps are. We looked into that and tried to benchmark ourselves with the best in financial services as far as cyber security is concerned.
“All the gaps we have are the ones we are trying to plug. Our plan is that by the end of 2018, we would have substantially addressed a lot of those gaps in three areas,” said Director, Information Technology Department, CBN, Mr. John Ayoh.
Ayo revealed that the CBN was working closely with its counterpart South Africa and the American Reserve Bank to gain further insight I checkmating cyber threats targeting the financial sector.
