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.
Galaxy Backbone Limited (GBB) has been ranked first overall in the 2025 Federal Government Website Performance Scorecard.
This is a landmark achievement for Nigeria’s digital economy.
The ranking, conducted by the Bureau of Public Service Reforms (BPSR), is the definitive benchmark for digital excellence and transparency across all Ministries, Departments, and Agencies (MDAs).
Professor Ibrahim Adepoju Adeyanju, managing director and CEO of Galaxy Backbone, received the award during a ceremony in Abuja.
He described the feat as a validation of the agency’s“Nigeria First”data sovereignty strategy and its relentless pursuit of service excellence.
This recognition comes as the Federal Government intensifies its push to achieve a fully paperless civil service by December 31, 2025.
GBB has been the primary architect of this transition through its 1Gov Enterprise Content Management (ECM) platform, which now hosts the operations of almost all federal MDAs.
The award adds to a growing list of accolades for Galaxy Backbone in 2025, following its recent win of the “International Standard Excellence Award for Best IT Service Provider.”
As the central hub for government shared services, GBB’s performance serves as a blueprint for other agencies currently undergoing digital transformation.
With its expanded fiber-optic backbone now covering over 13 states and its secure cloud solutions, Galaxy Backbone remains the cornerstone of Nigeria’s vision to become a leading digital nation by the end of the decade.
Okitipi Samuel, a Nigerian man, has been taken into custody by the Nigeria Police Force for his alleged role in a global cyberattack on Microsoft 365 users.
Benjamin Hundeyin, Force public relations officer, disclosed this on Thursday in Abuja while briefing journalists on the outcome of investigations carried out by the National Cybercrime Centre of the Nigeria Police Force.
Hundeyin said the centre, under the leadership of Ifeanyi Uche, its director and Commissioner of Police, commenced investigations in collaboration with Microsoft, the Federal Bureau of Investigation, the United States Secret Service, and the United Kingdom’s National Crime Agency.
According to him, investigations revealed that a phishing toolkit known as “Raccoon 0365” was used to create fake Microsoft login portals to harvest user credentials and unlawfully access email accounts belonging to corporate organisations, financial institutions, and educational institutions in several countries.
“This investigation commenced following credible intelligence received from Microsoft USA through the FBI, indicating that a malicious phishing toolkit known as Raccoon0365 was being used to create fake Microsoft login portals, harvest user credentials, and unlawfully access the email accounts of corporate organisations, financial institutions, and educational establishments,” Hundeyin said.
He added that between January and September 2025, several reports of unauthorised access to Microsoft 365 accounts were traced to phishing emails designed to mimic legitimate Microsoft login pages, enabling business email compromise, internal phishing, data breaches, and other cyber-enabled fraud.
Hundeyin said digital forensic analysis and cryptocurrency tracing identified wallets connected to the illegal operation.
He noted that operatives were deployed to Lagos and Edo states, leading to the arrest of three suspects identified as Joshua, James, and Okitipi Samuel between September 20 and October 4, 2025.
“Following extensive digital forensic and technical intelligence analysis, the centre conducted cryptocurrency tracing that identified suspicious wallets connected to cash-out schemes.
“Acting on actionable intelligence, operational teams were deployed to Lagos and Edo states, resulting in the arrest of Joshua, James, and Okitipi Samuel. Searches at their residences led to the recovery of mobile devices, laptops, and other digital exhibits linked to the fraudulent scheme,” he said.
Hundeyin identified Okitipi Samuel, also known as “0365” and Moses Felix as the principal suspect and developer of the phishing infrastructure.
He added that investigations confirmed Samuel unlawfully used the email details of one of the arrested individuals without consent to register some of the accounts used in the operation.
The police spokesperson said further investigations revealed that the identities of Joshua and James were used without their consent.
“There was no evidence linking them to the creation or operation of the phishing scheme. They were victims of identity theft,” Hundeyin said.
He said a prima facie case had been established against Samuel for identity theft, unlawful access to computer systems, creation and distribution of malicious software, unauthorised interference with network data, and aiding and abetting fraud.
Hundeyin added that the suspect would be charged under relevant provisions of the Cybercrimes (Prohibition, Prevention, etc.) Act, 2024.
He said the suspect would be prosecuted in Nigeria, noting that the country has the capacity to enforce its cybercrime laws, although extradition could be considered if formally requested through due process.
Hundeyin assured Nigerians that the police, under the leadership of Kayode Egbetokun, inspector-general of Police, would continue to protect the country’s digital ecosystem and urged citizens to practise good cyber hygiene by being cautious when clicking links and sharing personal information online.
Speaking separately, Ifeanyi Uche, director of the National Cybercrime Centre, urged Nigerians to exercise caution online.
Uche advised members of the public to avoid clicking on links from unknown or unexpected sources, noting that such links often contain malware or phishing tools designed to compromise devices and personal data.
He warned that indiscriminate clicking of links or responding to unsolicited emails could lead to unauthorised access to personal and corporate accounts, urging citizens to “wash their cyber hands” by verifying sources before taking action online.
Nigeria has unveiled a comprehensive, multi-pronged strategy designed to localise WSIS+20 commitments. This roadmap accelerates national transformation by prioritising robust infrastructure, transparent internet governance, and advanced cybersecurity through deep stakeholder collaboration.
Unveiled in New York at the Nigerian high-level side event titled “Re-Imagining Digital Cooperation for Sustainable Development: From WSIS+20 Vision to Local Action,” the strategy cements Nigeria’s position as a primary architect of the world’s digital future.
Speaking at the event, the Director General of the National Information Technology Development Agency (NITDA), Kashifu Inuwa, CCIE represented by Director, Corporate Planning and Strategy, Dr. Dimie Shively Wariowei said Nigeria’s approach is deliberately aligned with the four core activity areas identified under the ongoing WSIS+20 review process.
According to him, the focus areas provide a practical framework for translating global digital commitments into measurable national outcomes, ensuring that international resolutions drive inclusive growth and sustainable digital development at the country level.
Inuwa identified digital infrastructure as the foundation of effective localisation, noting persistent challenges in extending connectivity to underserved and remote communities. Beyond infrastructure gaps, he highlighted affordability constraints and digital literacy deficits, stressing that addressing these issues remains central to Nigeria’s digital inclusion drive.
He explained that government alone cannot shoulder the burden of nationwide digital infrastructure deployment, given Nigeria’s vast geographical spread, hence the adoption of collaborative Public-Private Partnership (PPP) models. He disclosed that Nigeria, in collaboration with the World Bank, is implementing a major fibre-optic project spanning about 90,000 kilometres nationwide to boost connectivity.
The NITDA DG also revealed that the current National Broadband Plan, which has guided broadband expansion in recent years, is nearing completion, with plans underway to renew and reposition it for the next five years. The renewed plan, he said, will strategically target increased broadband penetration as a catalyst for digital access and economic growth.
On internet governance, Inuwa referenced Nigeria’s active participation in the Internet Governance Forum (IGF), noting that the country successfully hosted its annual national IGF. He said the forum operates on a multi-stakeholder model that brings together government, the private sector, civil society and the technical community to foster cooperation and informed policy dialogue.
Cybersecurity, he added, remains a critical pillar of Nigeria’s localisation efforts. He cited the existing Cybersecurity Act and ongoing efforts to strengthen the legal framework through a reviewed version currently awaiting parliamentary approval. These measures, he said, are designed to mitigate risks associated with increased internet use and to protect users and critical digital infrastructure.
Inuwa further stressed Nigeria’s ambition to play a leadership role in advancing digital cooperation across Africa through inclusive, multi-stakeholder engagement. He underscored the importance of coordinated national data collection, noting that reliable, country-specific data is essential for tracking progress and presenting Africa’s digital development story on the global stage.
He concluded that sustained engagement and follow-up actions arising from the WSIS+20 review would strengthen digital cooperation among African countries and ensure that global digital commitments translate into tangible national and regional impact.
Stakeholders commended Nigeria’s efforts in the digital space, acknowledging the country’s growing role in shaping Africa’s digital future.
Earlier, Ms. Jennifer Chung, Co-Convener of the Informal Multi-Stakeholder Sounding Board (IMSB), praised Nigeria for convening a broad-based, multi-stakeholder delegation and for its commitment to the meaningful implementation of WSIS+20 outcomes.
Chung stressed the growing demand for localised WSIS follow-up mechanisms, noting that platforms such as the annual IGF, National and Regional IGF Initiatives (NRIs), and youth-led forums are vital for tracking progress towards the 2030 Agenda and Africa’s Agenda 2063.
She described the WSIS+20 review as a critical step toward effective monitoring, reliable data collection and evidence-based evaluation, particularly for developing countries in the Global South. According to her, these measures are essential to achieving WSIS targets and ensuring that no region is left behind.
Drawing parallels with the Asia-Pacific region, Chung noted that challenges around affordable and meaningful connectivity remain widespread across developing economies. She emphasised that expanding broadband penetration and reducing the cost of access are crucial to closing digital divides in Africa, Asia-Pacific and other parts of the Global South.
She also highlighted the need to enable active citizen participation in emerging technologies, including artificial intelligence and future innovations such as quantum technologies, stressing that inclusive digital access is key to maximising the benefits of digital transformation.
Reflecting on the WSIS+20 review process, Chung praised the innovative and inclusive approach adopted through the informal multi-stakeholder sounding board, describing it as one of the first of its kind in global digital governance. She called for sustained collaboration among governments, the private sector, civil society and the technical community to carry the WSIS vision from global commitments to local action.
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