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To make ePayments more acceptable, Nigeria needs to curb fraud

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By Victor Irechukwu, Head of Engineering, OnePipe

When a credit alert drops on your phone, chances are you will get excited. Even if it wasn’t a surprise and you were expecting that money. But when it is a debit alert, there’s also a certain type of gloom you feel; you want money to keep coming in but as little as possible of it going out.

Victor Irechukwu, Head of Engineering, OnePipe

Victor Irechukwu, Head of Engineering, OnePipe

It may be safe to say most of us feel that way.

Now, imagine the debit alert was for a transaction you know nothing about. A commonly reported theme has been alerts that your card was used to make deposits on a gambling website, whereas you may never have even indulged in gambling your entire life.

At other times, you are shown a debit alert by someone who wants to purchase goods or services from you, but only later realise they showed you what has now been termed ‘fake alerts’. By this time, your goods, for instance, would have been long gone.

In recent months, social media has been awash with reports of money literally growing wings and leaving some people’s accounts to those of other people without authorisation. Many of these cases have gone viral on social media, causing embarrassment for the banks involved – The issues are either quietly – or corrected with public acknowledgement. But not all are resolved, at least not yet.

As much as the country and even individuals would like to go cashless, these bad experiences leave a sour taste in the mouth, and they have continued to rain on the parade as Nigeria marches towards a cashless economy. It must be stressed that a cashless economy does not mean theft of money will stop, what it does is to change how thieves go about it. But more importantly, it also doesn’t mean thefts must occur, at least not if systems are strengthened and the right protocols are put in place.

In the electronic world, an article on The Balance Money describes hackers as the bank robbers and muggers and in a cashless society we are all exposed to them. According to the Nigeria Inter-Bank Settlement System Plc (NIBSS), growth in the use of electronic channels, specifically mobile devices has also enticed fraudsters into focusing their efforts on these electronic channels.

When an attack is successful and the culprits are able to drain funds from your account, you could be effectively left stranded. God forbid you needed that money for a life threatening emergency because that could be the end unless you are one of the lucky few whose funds get recovered in a place like Nigeria – and on time too.

Agusto & Co.’s ‘2022 Consumer digital banking satisfaction index for Nigerian banks’, found that approximately 59 percent of respondents had been fraud victims on the digital platforms of their banks.

The figures in terms of number of attacks, success rate and amounts lost remain a source of concern. By the third quarter of 2022, the total number of frauds & forgeries cases reported by Nigerian banks was 19,314 as against 27,356 incidents reported in the second quarter of 2022.

But there’s more. While the number of attacks represents a 29.40 percent decrease between the periods, the total sum reported to be involved in fraud cases increased by 9.50 percent to N9.62 billion from N8.78 billion in Q2 2022. Also, for the total amount lost due to fraud incidents, there was a significant increase of 207.94 percent from N1.17 billion in the second quarter of 2022 to N3.62 billion in the third quarter of 2022.

In essence, the number of attacks may have decreased within that particular period, but more money was lost to the fraudulent attacks.

These insights were provided in the Q3 2022 report by FITC, an organisation mandated to receive data on fraud from all Nigerian banks and prepare quarterly reports. The figures show that the highest number of occurrences were recorded under computer/web fraud followed by mobile fraud which includes fraud activities through USSD transactions and ATM related fraud.

BusinessDay had even reported that every day between January and March 2022, there was an average of 450 incidents of frauds and forgeries against Nigerian bank customers. In those three months, the attackers targeted N14.65 billion, with Computer/Web Fraud responsible for N10.57 billion (72.18 percent), and Mobile Fraud recording 1.48 billion (10.08 percent).

Those 40,522 attacks had resulted in N1.54 billion lost by bank customers. Computer/Web Fraud accounted for 70.51 percent (N1.07 billion), followed by Mobile Fraud accounting for 17.58 percent (N270.92 million) at the time.

Going back a bit, data by NIBSS also showed that fraud attempts via mobile channel saw a 330 percent increase year-on-year (YoY) between 2019 and 2020, while attempts via web and POS channels saw a 173 percent and 215 percent increase YoY. In those nine months, 96 percent of the attacks were successful and there were 46,126 of such attacks.

“This trend is expected to continue as Nigeria further grows financial inclusion and customers become increasingly dependent on electronic channels for their day-to-day transactions,” said NIBSS. In other words; things are expected to get a lot worse, according to the organisation described as Nigeria’s central switch for the financial industry.

Fraud is and has always been a large threat to commerce and e-payment transactions. It is impossible to totally eliminate the chance of fraud, but applying timely measures and ensuring the use of secure payment infrastructure can help reduce or even eliminate these risks. Security should continue to be top priority for every party involved in ePayment transactions. Fraud prevention involves taking measures to stop fraud from occurring and taking steps to detect frauds quickly (when they occur) and stop them as soon as possible. Different techniques for preventing and detecting frauds are required as there are different types of fraud in e-payment transactions.

Awareness of these risks by merchants, consumers and individuals plays an important role in reducing fraud in e-payment transactions. Merchant awareness and education is important – they should be aware of the types of frauds, implications and application of best practices. Consumer awareness and education is also important in order to reduce identity theft or payment data theft. This would help the individual in adopting an active and cautious attitude when carrying out electronic transactions. It could teach them to be aware of possible risks, avoid e-scams, and minimise giving vital information to merchants (or other parties) when carrying out electronic payments.


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Ugo Onwuaso is an ICT enthusiast. He believes technology should be used for general good. He holds a Master of Public Administration (MPA) degree from the Lagos state University. Dear Reader, Your support matters. But we believe that technology makes life more exciting and helps improve the lives of people around Nigeria and indeed the world. That is why, we have devoted our energy to independent reportage of technology and finance and how they affect lives. Our incisive and analytical view of how technology news affects the daily life help individuals and organizations make up their minds. Quality journalism costs money. Today, we're asking that you support us to do more. Kindly support our effort to deliver technology and finance journalism to everyone in the world. Donate as little as N1,000. Bank transfers can be made to: UBA Plc 1017156876 Communication Week Media Ltd

E-Business

Africa Among Regions with Highest Number of Industrial Systems Under Attack in Q 1 2023

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Malicious objects of all types were detected and blocked on 34% of Industrial Control System (ICS) computers in the first half of 2023, according to the ICS CERT landscape report by Kaspersky.

In Africa over this period attacks were detected on 40,3% of ICS computers, placing it in first place among the other regions. The top industries under attack were energy (45,9%), engineering & integration (44%) and building automation (40%). All these attacks were blocked after detection.

ICS computers are used in oil & gas, energy, automotive manufacturing, building automation infrastructures and other spheres to perform a range of operational technology (OT) functions – from the workstations of engineers and operators to supervisory control and data acquisition (SCADA) servers and Human Machine Interface (HMI).

Cyberattacks on industrial computers are considered to be extremely dangerous as they may cause material losses and production downtime for the controlled production line and even the facility as a whole. Moreover, industrial enterprises put out of service can seriously undermine a region’s social welfare, ecology and macroeconomics.

An analysis of the most significant and targeted threats detected on ICS computers in selected countries of Africa in the first half of 2023 shows that the threat landscape can vary between countries and between industries due to the differences in the security maturity of different countries/industries and the current focus of threat actors.

In South Africa in the first half of 2023 malware was detected and blocked on 29,1% of ICS computers, in Nigeria on 32,6%, in Kenya on 34,5% of machines.

There are different types of cyberthreats that OT-related computers face – malicious scripts, spy trojans, worms, ransomware, and others. In the first half of 2023 Africa had the highest percentage of ICS computers on which spyware was blocked (9,8%).

The Middle East and Southeast Asia had similarly high percentages (8,3% and 8,1%). The global average stands at 6,1%.

Africa was also the region with the highest percentage of ICS computers (14,8%) on which attacks from denylisted Internet resources were blocked (these are web resources associated with distributing or controlling malware). The global average is 11,3%.

Viruses and worms spread across ICS networks by means of removable media, shared folders, infected files, such as backups, and network attacks on outdated software.

The percentage of ICS computers on which worms were detected was very high in Africa (7% vs. 2,3% global average), making this region the leader by percentage of ICS computers on which threats were detected after removable devices were connected.

“Africa’s industrial landscape is diverse, ranging from large-scale mining operations to small-scale agriculture. This means that ICS cybersecurity solutions need to be adaptable to various sectors and technologies.

In some regions, legacy ICS systems that lack modern security features are still in use. These systems are often more vulnerable to cyberthreats and require significant upgrades. Lastly, some critical infrastructure in Africa is located in remote areas with limited connectivity, which can make it difficult to monitor and secure ICS assets effectively,” comments Evgeny Goncharov, Head of Kaspersky ICS CERT.

“By understanding these risks, organisations can make informed decisions, allocate resources wisely, and efficiently fortify their defenses. In doing so, they not only protect their bottom line but also contribute to a safer and more secure digital ecosystem for all.”


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PwC Nigeria Tech Talent Bootcamp IDs Leaked- Report

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Participants in PricewaterhouseCoopers (PwC) Nigeria Tech Talent Bootcamp are at risk of identity theft after private data was leaked from a misconfigured Amazon Web Services account, according to the latest Cybernews research team investigation.

PwC Nigeria Tech Talent Bootcamp IDs Leaked- Report

On July 21st, the Cybernews research team conducted a routine check using open-source intelligence (OSINT) methods and revealed a misconfigured Amazon AWS bucket.

According to the Cybernews team, the bucket containing nearly 25,000 sensitive PwC Nigeria files has been attributed to a third-party vendor, Xerde Tech.

The 24,668 exposed files include: copies of passports/government-issued IDs; resumes with phone numbers, home and email addresses, and other private information; and copies of degree/university certificates

PwC was also among the victims of the MOVEit attack earlier this year. The Cl0p ransom gang released data belonging to the company in 11 batches on the dark web and four on the publicly accessible clear web.

“This leak is a significant risk to exposed individuals, as the private information could be used for identity theft, financial fraud, spear-phishing, and scam campaigns. In an environment where the data is easily sold on the dark web, and bad actors specialize in extortion techniques, users should exercise extra caution,” Cybernews researchers said.

Cybernews reached out to PwC Nigeria, and the company resolved the issue, though it had not commented at the time of writing.

Additional Credit: itnewsafrica.com

 

 

 

 


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How Sophos Excels in MITRE Engenuity ATT&CK® Evaluations with 99% Detection Coverage

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Sophos, a global leader in innovating and delivering cybersecurity as a service, on Thursday announced its strong results in the MITRE Engenuity ATT&CK® Evaluations. Sophos Intercept X with XDR detected 99% of the adversary behaviors in the evaluation, reporting 141 out of 143 adversary attack steps.

Sophos Intercept X with XDR excelled in the independent ATT&CK Evaluations with its comprehensive EDR and XDR capabilities that deliver actionable context on the “what,” “why” and “how” of attacker behaviors.

In addition, Sophos Intercept X with XDR recorded rich analytic data on 98% of the substeps in the ATT&CK Evaluations.

“As active adversaries continue to prey upon the unprepared, good cybersecurity outcomes increasingly depend upon competent technologies in the hands of skilled operators. MITRE’s evaluation is a powerful objective measurement of a technology’s ability to produce the fundamental observations and classifications needed to effectively identify and defend against attackers,” said Joe Levy, president and chief technology officer at Sophos.

“Sophos meticulously architects its solutions for security operators, empowering them with superior protection, detection and response capabilities for known and unknown threats before they become full-blown, destructive attacks, and we believe MITRE’s evaluation results demonstrate the robustness of Sophos’ real-world security capabilities.”

This round of independent ATT&CK Evaluations evaluated the abilities of 30 vendors in detecting and analyzing attack tactics, techniques and procedures (TTPs) of Turla, a known Russia-based threat group. Turla leverages novel TTPs and custom tooling to evade security defenses, and was chosen as the evaluation adversary based on its innovative stealthy maneuvers; targeted sectors, including government, critical infrastructure, education, and more; and breadth of open-source reporting on its tradecraft.

“Turla is one of the most sophisticated threat actors, and their tradecraft is platform diverse, dynamic in stealth, and layered in persistence,” said Amy Robertson, MITRE cyber threat intelligence lead, ATT&CK Evals. “This round provides an emulation that focused on kernel and service-level operations that often run with the same permissions as detection and protection products.

“Our goal is to empower end users and purchasers with unbiased insights into the product capabilities that detect these advanced adversary behaviors, while also collaborating with the participating vendors to evolve their products.”

Sophos Intercept X with XDR combines active adversary mitigations – including industry-first Adaptive Attack Protection that immediately activates heightened defenses when a hands-on-keyboard attack is detected, stopping the attack and providing defenders valuable additional time to respond; anti-ransomware technology; deep learning artificial intelligence; and exploit prevention to prevent and stop attacks.

It is powered by Sophos X-Ops threat intelligence, a cross-operational task force of more than 500 security experts within SophosLabs, Sophos SecOps and SophosAI.

For more information on Sophos’ evaluation results, watch this video and visit https://attackevals.mitre-engenuity.org/enterprise/turla/.


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