E-Business
Global Enterprises Loss Over $315Bn to Organized Crime Annually
Enterprises worldwide are expected to spend nearly $500 billion in 2014 to deal with issues caused by malware deliberately loaded onto pirated software — $127 billion dealing with security issues.
Middle East and Africa will account for $8 billion of the costs and $364 billion dealing with data breaches, according to a new joint study conducted by IDC and the National University of Singapore (NUS).
Global consumers, on the other hand, are expected to spend $25 billion, including Middle East and African consumers who will pay $2 billion, on security threats and costly computer fixes stemming from malware on pirated software.
This will also amount to 1.2 billion hours of wasted time in 2014.
The study, titled “The Link Between Pirated Software and Cybersecurity Breaches,” also revealed that 60 percent of consumers surveyed say their greatest fear from infected software is the loss of data, files or personal information, followed by unauthorized Internet transactions (51 percent) and hijacking of email, social networking and bank accounts (50 percent).
However, 43 percent of those same respondents do not install security updates, leaving their computers open to attack by cybercriminals.
“There is now a firm link between the detected malware on illicit software and criminal organizations, for which malware in pirated software can be a lucrative vector for cyberattacks. With many of these criminal organisations also behind the distribution of infected software, it means that an increase in software piracy translates to an increased vulnerability to cyberattacks,” said Daniel Kamau, anti-piracy lead for sub-Saharan Africa. “In the sub-Saharan region, the internet population is fast growing, meaning a large and unsuspecting base of targets to cybercriminals. Combine this with the lack of strong cybercrime laws and high piracy rate on the continent and its clear why we’re seeing more and more people fall victim to attacks.”
Government officials expressed concern about the potential impact of cybersecurity threats to their nations. According to the survey, governments are most worried about the loss of business trade secrets or competitive information (59 percent), unauthorized access to confidential government information (55 percent), and the impact of cyberattacks on critical infrastructure (55 percent).
It is estimated that governments could lose more than $50 billion to deal with the costs associated with malware on pirated software.
The African continent accounts for only 2 percent of global GDP, yet it accounts for 10 percent of global cybercrime incidents.
Across the continent, governments are increasingly partnering with local associations and vendors to combat the scourge of piracy and the associated risk of cybercrime.
In Nigeria, Microsoft has already partnered with the Nigerian Copyright Commission (NCC) to combat piracy, which according to the 2011 BSA Global Software Piracy Study, currently sits at 83% across the East and Southern Africa region.
On this occasion of “The Microsoft Play it Safe Day”, The Nigerian Copyright Commission (NCC) would like to remind all Nigerians that:
a) “Supplying pirated software material is a criminal offence under The Copyright Act, which can earn the supplier, a fine of up to a 1000 Naira for each offending item and or a custodial sentence of up to 5 years in prison. Furthermore, anyone who buys pirated software material may find themselves being charged as an accessory to a criminal offence.
“b) Apart from the criminal charge; supplying pirated software material, is also a civil infringement of the copyright owners’ rights; which apart from the criminal sentence, can also simultaneously attract heavy monetary damages against the offending supplier.
“c) Using pirated software, leaves the computer or other implicated system of such user exposed to malware, cybercrime/cyber insecurity, which can put sensitive personal and or business information at risk, “ Afam Ezekude, executive director, Nigerian Copyright Commission.
The Nigerian Copyright Commission, encourages all Nigerians to “Play It Safe”; stay out of prison; keep you from punitive civil liability; protect your computers and digital systems from malware and cybercrime, do not supply or patronize pirated software.
“Cybercriminals are profiting from any security lapse they can find, with financially devastating results for everyone,” said David Finn, executive director and associate general counsel, Microsoft Cybercrime Center.
“Motivated by money, they’ve found new ways to break into computer networks so they can grab whatever they want: your identity, your passwords and your money. That’s why at the Microsoft Cybercrime Center, we’re focused on putting an end to these malicious acts to keep personal and financial data safe and secure, while reducing the financial incentive for criminals.”
The study was released yesterday as part of Microsoft’s “Play It Safe” campaign, a global initiative to create greater awareness of the connection between malware and piracy.
Additional highlights from the survey include that nearly two-thirds of enterprise losses ($315 billion) will be at the hands of organized criminals.
Also nearly 20 percent of the pirated software in enterprises is installed by employees.
And twenty-eight percent of enterprise respondents reported security breaches causing network, computer or website outages occurring every few months or more; 65 percent of those outages involved malware on end-user computers.
“Using pirated software is like walking through a field of landmines: You don’t know when you’ll come upon something nasty, but if you do it can be very destructive,” said John Gantz, chief researcher at IDC. “The financial hazards are considerable, and the potential losses could leave once-profitable businesses on shaky ground. Buying legitimate software is less expensive in the long run — at least you know that you won’t get anything ‘extra’ in the form of malware.”
The NUS forensics analysis of 203 new PCs loaded with pirated software found that a staggering 61 percent of the PCs were pre-infected with unsafe malware, including Trojans, worms, viruses, hacktools, rootkits and adware.
These PCs, purchased through resellers and PC shops in 11 markets, included more than 100 discrete threats.
“It is hugely concerning that brand new PCs are coming pre-infected with dangerous malware due to pirated software, making the users and companies readily vulnerable to security breaches,” said Professor Biplab Sikdar, Department of Electrical & Computer Engineering, National University of Singapore.
“The university’s forensic tests clearly indicate how cybercriminals are increasingly leveraging the unsecure supply chain of piracy to spread malware and compromise PC security in a serious way. We would only recommend usage of genuine software for online safety and cybersecurity.”
The global study surveyed 1,700 consumers, IT workers, chief information officers, and government officials in Brazil, China, France, Germany, India, Indonesia, Japan, Mexico, Poland, Russia, Singapore, Ukraine, the United Kingdom, and the United States, and analyzed 203 computers acquired in Brazil, China, India, Indonesia, Mexico, Russia, South Korea, Thailand, Turkey, Ukraine, and the United States.
This year’s research is an extension of IDC’s 2013 study, “The Dangerous World of Counterfeit and Pirated Software,” differentiated by the attitude of government officials as well as the analysis of new markets, making the economic connection to cybercrime.
Whether an individual user, a small business, enterprise or even a government institution, all are encouraged to buy new computers from reputable sources to ensure they receive genuine software.
Microsoft said it is committed to protecting its unsuspecting consumers from downloading or purchasing no genuine software that exposes victims to malware that can lead to identity theft, loss of data and system failures.
LG Electronics has reaffirmed its commitment to advancing innovation and smart living across Africa by participating as a supporting sponsor at the Africa Technology Expo (ATE) 2026, where the company is showcasing its latest portfolio of premium consumer electronics and home appliance innovations.
The two-day expo, themed around strengthening Africa’s enterprise technology ecosystem through collaboration and innovation, has brought together industry leaders, technology innovators, multinational companies, policymakers, and entrepreneurs to explore opportunities for cross-border partnerships and digital transformation across the continent.
As one of the supporting sponsors of this year’s event, LG’s interactive exhibition booth has become a major attraction, offering visitors firsthand experience of the company’s latest AI-powered technologies designed to enhance everyday life while delivering greater comfort, convenience, energy efficiency, and connectivity.
Among the innovations on display are the latest LG QNED TV, delivering exceptional picture quality and immersive entertainment; the iconic MoodUP™️ Refrigerator, which combines intelligent cooling with customizable LED door panels; the innovative LG WashTower™️, an all-in-one premium laundry solution that maximizes space and efficiency; the energy-efficient LG ARTCOOL Air Conditioner and LG Air Tower, designed to provide smarter climate control; alongside LG’s advanced Dehumidifier and other intelligent home solutions.
Speaking on LG’s participation, Mr. H.S. ji, Managing Director, LG Electronics West Africa, said: “Africa Technology Expo provides an excellent platform to engage with innovators, businesses, and consumers who are shaping the future of technology across the continent. At LG, innovation goes beyond creating advanced products, it is about developing meaningful solutions that improve everyday life.
“Our participation reflects our commitment to supporting Africa’s digital transformation while introducing intelligent technologies that make homes and workplaces smarter, healthier, and more energy-efficient.”
The Africa Technology Expo was established to foster stronger collaboration among African businesses, emerging enterprises, and multinational organisations. During the opening ceremony, the organisers emphasized the need for deeper continental collaboration to unlock Africa’s innovation and economic potential, noting that previous editions of the expo have facilitated approximately $192 million in business deals among participating companies.
LG’s presence at the event aligns with this vision by demonstrating how cutting-edge consumer technology can support economic growth, digital inclusion, and sustainable development across Africa.
Visitors to the LG booth are participating in live product demonstrations, interactive experiences, and expert consultations, gaining valuable insights into how LG’s AI-powered ecosystem seamlessly connects home appliances and entertainment products to deliver a smarter lifestyle.
As technology continues to reshape industries and everyday living, LG remains committed to driving innovation that empowers consumers, supports enterprise growth, and contributes to Africa’s evolving digital economy.
Nigeria’s weak data protection guardrails may undermine the recent directive by Central Bank of Nigeria (CBN) to banks, fintech firms, and other payment service providers to store payment transaction data generated within the country local servers.
CBN said that the new rule will start from January 1, 2027, as part of new measures to strengthen oversight of the fast-growing digital payments ecosystem.
This will also provide the country greater control over critical data infrastructure, allowing authorities to easily access records, conduct audits, enforce compliance, and investigate, especially in cases where criminal offenses are involved, reducing delays often caused by intermediation between local and foreign entities.
Apart from data sovereignty, the CBN added that moving transaction records from foreign servers will help drive investments in local data centers and cloud storage capacity.
Though reliable estimates are hard to come by, it is believed that Nigeria loses over N60 billion in hosting data in foreign servers.
But a coalition of civil society organizations (CSOs), has raised concerns over safety measures in place to protect data of Nigerians, despite having data protection laws in place.
The coalition, comprising Media Rights Agenda, Paradigm Initiative, Digital Rights Lawyers Initiative, and Accountability Lab Nigeria, among others, released the “Protected From the State, Not By It: Nigeria’s Data Protection Crisis Is a Crisis of Implementation,” where they criticized regulators’ failure to effectively enforce data protection laws, which led to rising cases of digital fraud and rampant illegal sale of sensitive information.
There have been leaks of sensitive voter, financial, and personal records.
For instance, there was alleged unauthorized access to the Continuous Voter Registration (CVR) database of the Independent National Electoral Commission (INEC) during a nationwide CVR exercise.
INEC earlier released the preliminary findings of its investigation into the matter, saying that it found no external breach of its systems and that the personal information of over 90 million registered voters was not compromised.
Despite this, CSOs argued that the incident underscored the lack of oversight, adding that it showed that while data privacy laws are in place, sensitive information can be easily moved from a secure government database and into the hands of private political entities.
The coalition also pointed out regulators’ failure to conduct human rights impact assessments on public surveillance systems before related programs were deployed, urging the government to act on these issues by subjecting public institutions to the same compliance requirements as private organizations.
“This is the asymmetry at the heart of the crisis: citizens are under-protected from data abuse and over-exposed to state monitoring and punishment,” the CSOs stated.
Additional report by coingeek
Visa, a multinational firm into payment card services says Artificial intelligence enabled scams have emerged as the fastest-growing source of consumer payment fraud globally as cybercriminals increasingly target people.
Visa stated this in its Mid-year 2026 Biannual Threats Report released on Wednesday in Lagos.
The report said scammers were increasingly using AI tools and social engineering tactics to manipulate consumers into authorising fraudulent payments themselves.Premier League Fixtures
It indicated that from July to December 2025, Visa identified nearly one billion dollars in scam-related activity, making scams the largest category of consumer payment fraud.
According to the report, fraudsters now impersonate trusted brands and institutions, create a sense of urgency and deceive victims into completing seemingly legitimate transactions.
The report said stronger network-level security had reduced opportunities for direct system compromises, forcing criminals to shift their focus to exploiting human trust.
It revealed that fraud involving device tokens declined by 9.6 per cent between July and December 2025, compared with the same period in 2024.
The report identified accelerating scams, growing use of AI in fraud, migration of attacks from technology to people, and evolving ransomware trends as key developments shaping payment security.
It stated that global ransomware activity rose by 26 per cent during the review period compared with the corresponding period in 2024.
However, only 23 per cent of ransomware victims paid ransoms, the lowest level on record, reflecting improved resilience and recovery capabilities, according to the report.
Commenting, Mr Paul Fabara, chief Risk and Client Services officer, Visa, said that payments at network level continued to get safer, but threats were evolving faster than ever
Fabara said criminals were increasingly using deception, urgency and AI-enabled tools to exploit trust, requiring stronger collaboration across the payments ecosystem.
Also, Andrew Uaboi, vice president and Cluster head, Visa West Africa, said AI had significantly lowered the barriers to entry for fraudsters.
“What once required deep technical skill can now be executed with a prompt,” Uaboi said.
He said intelligence-driven defence and coordinated action across the ecosystem were becoming increasingly critical to protecting consumers from emerging threats.
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