By 
By Olusegun Oruame
Mobile bank app users in Nigeria have been warned to be much cautious in 2019 as cybercriminals target that segment of financial services that is increasingly gaining grounds in Nigeria and elsewhere in the world. A new report by Kaspersky Lab has warned of manifold increase in banking malware attacks in 2019 potentially putting mobile financial services under siege and scaring off mobile bank app users.
Worldwide, mobile banking users are expected to cross over two billion by 2020 according to a 2016 report by Juniper Research. With Smartphone adoption on the upswing in Nigeria, and an increasing focus by banks to reduce the traffic in banking halls, more than 34 million Nigerians now do over 60% of their financial transactions via their mobile banking apps, an IT Edge News review can prove.
As at August 2017, Nigeria mobile banking users was 29 million to quote a statement by the Managing Director of Nigeria Inter-Bank Settlement System (NIBSS), Mr. Adesonubi Adebisi at a fintech forum in Lagos. Because of convenience and ease of use, Adebisi claimed: “Internet banking is slowing down; mobile banking is growing and USSD is also growing; while ATM usage remains stagnant in the past three years.” (See https://abbakin.com/nigeria-mobile-banking-grows/).
A similar report – the 2018 Consumer Digital Banking Satisfaction Index, released in Lagos earlier this year, by Agusto & Co. Limited, a credit rating and research agency, states that mobile banking apps are now the most preferred digital banking platform for bank customers in Nigeria followed by USSD codes.
As at the second quarter of 2018, downloads of the Zenith Bank mobile app had exceeded over one million to underscore the shift in customers’ behaviour to do banking services through mobile apps. Zenith is one of Nigeria’s top 5 banks.
The rising uptake of mobile banking is nurtured by the increasing growth of mobile internet and higher adoption of smartphones. A 2018 Jumia Mobile Report 2018 says out of the 162 million mobile subscribers in 2017 in Nigeria, only 21 million of them are smartphone users, and only 17 million smartphone users are active on social media via their mobile phones. That number has since grown significantly in 2018. https://www.jumia.com.ng/mobile-report/
Banks are not sleeping and are perpetually on alert to guide against attacks as mobile apps users grow exponentially, said Divisional Head, Fintech & Innovation at Guaranty Trust Bank Plc., Mr. Deji Oguntonade.
Stakeholders have the obligation to keep digital financial services secure by responding proactively to the early warning signals by Kaspersky Lab and other Internet security companies.
Criminals have their eyes on bank mobile apps and they are likely to have the first malwares attack on mobile apps in 2019. Kaspersky Lab warns: “There are enough tools for this, and the possible losses that businesses incur would be much higher than the losses incurred when individuals are attacked.” See the Kaspersky Lab report below:
The past year has been extremely eventful in terms of the digital threats faced by financial institutions: cybercrime groups have used new infiltration techniques, and the geography of attacks has become more extensive. According to the KSN statistics by Kaspersky Lab (www.Kaspersky.com), the Middle East, Turkey and Africa (META) region witnessed 17% increase in banking malware attack to reach almost half a million attacks in 2018. Cryptocurrencies have also become an established part of many people’s lives, and a more attractive target for cybercriminals across the world, which resulted in a rapid increase in malicious mining of cryptocurrencies.
Kaspersky Lab recorded a 4-fold increase in cryptomining attacks in the META region from 3.5 million in 2017 to 13 million in 2018.
“The META region is becoming more appealing to cybercriminals, with financial and malicious cyrpotomining attacks taking center stage. We discovered six new ATM malware families in 2018. On the other hand, illegal mining of cryptocurrencies has increased dramatically to overtake the main threat of the last few years: ransomware. We believe the reason behind this is that mining is silent and cause less impact that ransomware, making it less noticeable,” said Fabio Assolini, Senior Security Researcher at Kaspersky Lab.
Cybercriminals are not showing any signs of stopping and attacks will continue to evolve. Below are predictions by Kaspersky Lab experts on how these trends could affect our lives in the coming year.
Financial cyber threats (https://bit.ly/2UIB6GL)
- 2019 could see the first attacks through the theft and use of biometric data
Biometric systems for user identification and authentication are being gradually implemented by various financial institutions. Several major leaks of biometric data have already occurred. These two facts lay the foundation for the first POC (proof-of-concept) attacks on financial services using leaked biometric data.
- The emergence of new, local groups attacking financial institutions in the Indo-Pakistan region, South-East Asia and Central Europe
The activity of cybercriminals in these regions is constantly growing: the immaturity of protective solutions in the financial sector and the rapid spread of various electronic means of payment among the population and companies in these regions are contributing to this. Now, all the prerequisites exist for the emergence of a new center for financial threats in Asia, in addition to the three that exist already in Latin America, the Korean peninsula and the former-USSR.
- Attacks on mobile banking for business users
Mobile applications for business are gaining popularity, which is likely to lead to the first attacks on their users. There are enough tools for this, and the possible losses that businesses incur would be much higher than the losses incurred when individuals are attacked.
The future of cryptocurrency (https://bit.ly/2S0w0nF)
- Excessive expectations about the use of blockchain beyond the cryptocurrency sphere will disappear
In the end, this trend will be driven by people rather than the technology’s capability, as organisations and industries come to the conclusion that blockchain has a rather narrow scope of application, and most attempts to use in different ways are not justified. The reliable application of blockchain beyond cryptocurrency has been explored and experimented with for years, but there is little evidence of achievement. 2019 will be the year people stop trying.
- Cryptocurrencies as a means of payment will decline further
In 2017 a number of suppliers of goods and services announced that they would accept cryptocurrencies as a form of payment. However, in the face of huge commissions (an acute problem in December 2017), slow transfers, a large price for integration, and, most importantly, a small number of customers, its use as a method of payment declined steadily. In the end, the use of cryptocurrencies by a legitimate business simply does not make much sense.
- There will be no return to 2017’s sky-high exchange rates
Until January 2018, there were immense highs and lows in the price of Bitcoin. These is not expected to return as the value of cryptocurrencies levels out to reflect their popularity. There is a finite audience for whom cryptocurrencies are of interest, and once that limit is reached, the price will not rise further.
To read the full financial threat predictions click here (https://bit.ly/2UIB6GL).
To read the full cryptocurrency predictions click here (https://bit.ly/2S0w0nF).
