E-Financial
Cyber Criminals Compromise 24m Records in 6 Months
Figures published by Gemalto, Security Company, show that data breaches are getting worse with 246 million records compromised by criminal activity in the first six months of 2015.
The numbers suggest cyber-crime will remain a top priority for banks for the foreseeable future, Gemalto warns.
Compared to the first half of 2014, known and reported data breaches increased by 10% to 888 while the number of compromised data records declined by 41% during the first six months of this year.
This decline in compromised records can most likely be attributed to that fact that fewer large scale mega breaches have occurred in the retail industry compared to the same period last year.
Despite the decrease in the number of compromised records, large data breaches continued to expose massive amounts of personal information and identities.
The largest breach in the first half of 2015 – which scored a 10 in terms of severity on the Breach Level Index – was an identity theft attack on Anthem Insurance that exposed 78.8 million records, representing almost a third (32%) of the total data records stolen in the first six months of 2015.
Other notable breaches during this analysis period included a 21 million record breach at the US Office of Personnel Management; a 50 million record breach at Turkey’s General Directorate of Population and Citizenship Affairs; and a 20 million record breach at Russia’s Topface.
In fact, the top 10 breaches accounted for 81.4% of all compromised records.
“What we’re continuing to see is a large ROI for hackers with sophisticated attacks that expose massive amounts data records. Cyber criminals are still getting away with big and very valuable data sets,” said Jason Hart, chief technology officer for data protection at Gemalto.
“For instance, the average healthcare data breach in the first half of 2015 netted more than 450,000 data records, which is an increase of 200 percent compared to the same time last year.”
The number of state-sponsored attacks accounted for just 2% of data breach incidents, but the number of records compromised as a result of those attacks totalled 41% of all records exposed, due to the breaches at Anthem Insurance and the US Office of Personnel Management.
While none of the top 10 breaches from first half of 2014 were caused by state-sponsored attacks, three of the top ten this year were – including the top two.
At the same time, malicious outsiders were the leading source of data breaches in the first half of 2015, accounting for 546 or 62% of breaches, compared to 465 or 58% in the first half of last year.
Forty-six percent or 116 million of the total compromised records were attributable to malicious outsiders, down from 71.8% or 298 million in 2014.
Identity theft remained the primary type of breach, accounting for 75% of all records compromised and slightly more than half (53%) of data breaches in the first half of 2015.
Five of the top ten breaches, including the top three – which were all classified as Catastrophic on the BLI – were identity theft breaches, down from seven of the top 10 from the same period last year.
Across industries, the government and healthcare sectors accounted for about two-thirds of compromised data records (31% and 34% respectively), though healthcare only accounted for 21% of breaches this year, down from 29% compared to the same period last year.
The retail sector saw a significant drop in the number of stolen data records, accounting for 4% compared to 38% for the same period last year.
Across regions, the US represented the largest share with three-quarters (76%) of data breaches and nearly half of all compromised records (49%).
Turkey accounted for 26% of compromised records, with its massive GDPCA breach in which 50 million records were breached by an outsider.
The level of encryption used to protect exposed data – which can dramatically reduce the impact of data breaches – increased slightly to 4% of all breaches compared with 1% in the first half of 2014.
“While the number of data breaches fluctuates, it’s still clear that breaches are not a matter of ‘if’ but ‘when.’ The Breach Level Index data shows that most companies are not able to protect their data once their perimeter defences are compromised,” added Hart.
“Although more companies are encrypting data, they are not doing it at the levels needed to reduce the magnitude of these attacks. What is needed is a data-centric view of digital threats starting with better identity and access control techniques including multi-factor authentication and strong encryption to render sensitive information useless to thieves.”
According to Forrester, as cybercriminals have become more skilful and sophisticated, they have eroded the effectiveness of traditional perimeter-based security controls.
The constantly mutating threat landscape requires new defensive measures, one of which is the pervasive use of data encryption technologies. In the future, organizations will encrypt data — both in motion and at rest — by default. This data-centric approach to security is a much more effective way to keep up with determined cybercriminals.
By encrypting, and thereby devaluing, sensitive data, organisations can make cybercriminals bypass their networks and look for less robustly protected targets.
Encryption will become a strategic cornerstone for security and risk executives responsible for their organization’s data security and privacy efforts.
ChatPay has launched Africa’s conversational banking platform, enabling individuals and businesses to access financial services through WhatsApp.
The Lagos-based fintech startup, is in controlled rollout, connecting WhatsApp to linked-bank management, airtime and supported electricity payments through simple conversations.
The company said the platform is designed to enable users to send money, pay bills, buy airtime and manage business transactions within WhatsApp conversations, subject to the completion of regulatory approvals and integration with licensed banking partners.
According to ChatPay, the platform is operated by CP Technology Limited and is currently undergoing a phased rollout ahead of its planned public launch.
The company said the initiative is intended to simplify access to financial services by leveraging WhatsApp, which it estimates is used by more than 50 million Nigerians monthly.
Speaking on the idea behind the platform, Adeoluwasubomi Odebunmi, product lead and co-founder, said the concept emerged while she was studying Software Engineering at Babcock University.
“I saw the gap while I was still in school—how much friction there was just to move money. I didn’t want to just study the problem. I wanted to help fix it,” she said.
Odebunmi said she had previously worked on software solutions spanning e-commerce, real estate management, school administration and artificial intelligence applications before co-founding ChatPay.
Aseoluwa Siyanbola, growth lead and co-founder, said his experience managing Nigerian bank accounts while studying abroad highlighted some of the challenges users face with digital banking services.
According to him, difficulties such as one-time password (OTP) failures and inconsistent banking applications inspired the team to explore conversational banking solutions.
“We each encountered similar challenges and came together to build a solution that simplifies everyday financial transactions,” he said.
cAbraham William, tech lead and co-founder, said the company is focused on improving access to financial services through a platform that many Nigerians already use daily.
“We want to make financial services easier to access by allowing people to carry out transactions through a familiar messaging platform,” he said.
William said he oversees the company’s engineering, technology strategy and system architecture.
ChatPay said its services will be introduced in phases as regulatory requirements are met and integrations with banking partners are completed.
The company added that its newly launched “Founding 2,500” programme will enable selected early users to test features, provide feedback and participate in product development before the platform’s wider rollout.
According to the company, interested users can register for the waitlist and the Founding 2,500 programme through its website.
Founded by Odebunmi, Siyanbola and William, ChatPay said its long-term goal is to expand conversational banking services beyond Nigeria into other African markets after its domestic rollout.
United Bank for Africa (UBA) Plc has been named Nigeria’s Best Bank for Retail Banking and Best Bank for Sustainability Leadership (ESG) at the 2026 Euromoney Awards for Excellence, reinforcing its position as one of Africa’s leading financial institutions.
The awards were presented on July 17 at The Peninsula London in the United Kingdom, recognising financial institutions that have demonstrated outstanding performance, innovation, customer impact and sustainable banking practices.
The double recognition highlights UBA’s growing influence in retail banking and its commitment to advancing environmental, social and governance (ESG) principles across its operations.
According to Euromoney, UBA distinguished itself through a series of sustainability initiatives, including the introduction of a Green Financing Facility designed to support households and businesses transitioning to renewable energy.
The publication also cited the bank’s ₦5 billion financing programme, implemented in partnership with the Bank of Industry (BOI), to provide funding for women-owned businesses.
Euromoney further recognised UBA’s commitment to achieving net-zero carbon emissions by 2050, describing it as a demonstration of the bank’s long-term sustainability strategy.
The publication also highlighted the bank’s efforts to integrate sustainability into its operations through the deployment of solar-powered energy solutions across 50 branches and comprehensive ESG capacity-building programmes that have trained more than 16,000 employees across the UBA Group.
In the retail banking category, Euromoney noted that UBA continued to consolidate its position as one of Africa’s largest retail banking institutions.
According to the publication, the bank expanded its customer base to more than 37 million by the end of 2025, while retail banking revenue increased more than fourfold to ₦429.5 billion.
The awards also recognised UBA’s continued investment in digital banking innovation, particularly enhancements to its artificial intelligence-powered chatbot, LEO.
Euromoney noted that LEO became Africa’s first AI-powered banking platform to facilitate cross-border money transfers in local currencies through the Pan-African Payment and Settlement System (PAPSS).
Commenting on the awards, UBA’s Group Managing Director and Chief Executive Officer, Mr Oliver Alawuba, described the recognition as a validation of the bank’s commitment to delivering value to customers while promoting sustainable development across Africa.
“To be recognised as Nigeria’s Best Bank for both ESG and Retail Banking in the same year sends a powerful message that sustainable banking and commercial success are mutually reinforcing.
“At UBA, we are committed to financing Africa’s future, supporting businesses and communities, promoting financial inclusion, and delivering innovative banking solutions that improve lives.
“These awards belong to our customers for their confidence in us and to every member of the UBA family whose dedication continues to make our vision a reality,” he said.
Also speaking, UBA’s Group Head, Marketing, Brand and Corporate Communications, Mrs Alero Ladipo, said the awards reflected the bank’s unwavering commitment to putting customers at the centre of its operations.
According to her, every innovation, investment and banking solution introduced by UBA is aimed at creating exceptional value for customers while expanding access to financial services.
“These awards are a powerful affirmation of our Customer First philosophy.
“Whether it is supporting entrepreneurs with access to finance, enabling seamless digital payments, advancing clean energy financing or expanding financial inclusion across Africa, UBA remains focused on delivering meaningful impact.
“We are honoured that one of the world’s most respected financial publications has recognised these efforts,” she said.
UBA currently operates in 20 African countries, as well as the United Kingdom, United States, France and the United Arab Emirates, serving more than 45 million customers through a combination of digital banking platforms and physical branch networks.
The bank said it remains committed to strengthening financial inclusion, driving innovation and supporting sustainable economic development across Africa and beyond.
Nigeria Deposit Insurance Corporation (NDIC) has begun paying insured deposits to customers of the 46 recently failed microfinance banks.
Mr Thompson Sunday, managing director and chief executive, NDIC, disclosed this in an interview with the News Agency of Nigeria (NAN) in Abuja.
The interview took place on the sidelines of the International Association of Deposit Insurers Africa Regional Committee meeting.
Sunday said the corporation was using the Nigeria Inter-Bank Settlement System (NIBBS) and customers’ Bank Verification Numbers (BVN) for the payments.
He said the NDIC had traced depositors’ alternative bank accounts and credited them directly without requiring physical visits.
He advised depositors without BVNs to visit the nearest NDIC zonal office for verification and payment processing
“The CBN revoked the licences of the 46 microfinance banks on July 1, 2026,” he said.
He said the NDIC automatically became the provisional liquidator after the revocation, in line with the law.
Sunday said the corporation had commenced payment of the insured maximum deposit of N2 million to eligible customers.
He explained that further payments would depend on the recovery of the failed banks’ assets and outstanding debts.
He said proceeds realised from recoveries would be distributed as liquidation dividends to eligible depositors.
Sunday cited Heritage Bank, Aso Savings and Union Homes as examples of the NDIC’s prompt reimbursement efforts.
He said insured depositors of Heritage Bank were paid within four days of the revocation of its licence.
He added that customers of Aso Savings and Union Homes received payments within 72 hours.
“The law allows us 30 days, but we are working to surpass our previous records,” he said.
The Central Bank of Nigeria (CBN) revoked the banks’ licences for failing to meet regulatory requirements for continued operations.
The apex bank said the action was aimed at protecting depositors, strengthening financial stability and ensuring regulatory compliance.
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