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Understanding the Risks of Insecure Payment Processing

By Gideon Ayogu
Businesses across the world are losing customers and huge sums due to a rise in payment fraud in the last few years. A recent report highlights an alarming 88% global increase in payment fraud between December 2021 and March 2023. In an ever-evolving digital world, payment processing is at the heart of every business transaction. However, each transaction carries significant risks that must be effectively managed and mitigated. Consequently, ensuring robust security in payment processing has never been more critical.

With the increasing sophistication of payment fraud, many businesses are becoming targets for hackers and cybercriminals who exploit insecure payment processing systems. These attacks can lead to severe consequences, including financial losses, reputational damage, legal repercussions and a significant loss of customer trust.
This SeerBit blog post highlights the potential risks and consequences of neglecting security in payment systems and emphasises the importance of partnering with a trusted payment solutions provider to effectively mitigate these risks.
Potential Consequences Of Insecure Payment Systems
There are numerous consequences that your business will suffer if you become a victim of fraud due to insecure payment systems. Some of these are discussed below:
- Financial Losses
The lack of strong security measures in your payment systems can leave your business vulnerable to a wide range of fraud, including unauthorised transactions, identity theft, and credit/debit card fraud. These threats often lead to significant financial losses for businesses. A 2023 report by IBM revealed that the average global cost of a data breach has risen to $4.45 million, covering both direct expenses like fines and legal fees, as well as indirect costs such as customer attrition and lost business opportunities.
In 2023, three Nigerian fintech companies lost more than N5 billion to hacking incidents between Q1 and Q3 of the year, while another lost N800 in just one week, according to media reports. These alarming incidents highlight significant vulnerabilities within the security architecture of payment systems.
The rise in security breaches and fraud cases in recent years, along with businesses being compromised through their connections to insecure platforms, underscores the critical importance of secure payment processing. This highlights the need for businesses to partner with a trusted payment solutions provider.
- Reputational Damage
Reputational damage from a data breach or fraud often has a longer-lasting impact than the immediate financial losses. Today’s customers are more aware and concerned about the security of their personal and financial information than ever before.
A single breach can severely undermine customer trust, leading to decreased sales and long-term brand damage. Regaining this trust can be extremely challenging, if not impossible, for many businesses. This loss of customers and revenue underscores why secure payment systems are crucial for business survival and growth.
- Legal Repercussions
Businesses that experience a security breach or fall victim to fraud may face significant legal repercussions, many of which could be avoidable. In cases of payment fraud, affected stakeholders might sue the business, or the business may need to engage in expensive legal proceedings against those responsible.
Additionally, a security breach could indicate non-compliance with industry best practices or current security standards, such as PCI DSS (Payment Card Industry Data Security Standards), potentially resulting in substantial fines and other legal consequences.
How To Secure Your Payment Process And Protect Your Business Against Fraud
The operational disruption that a fraudulent activity or a breach of your security system can cause will lead to a loss of productivity and efficiency, alongside other consequences already discussed in this post. Hence, you should place a premium on securing your payment process and protecting your business against fraud. One of the best ways to achieve this is by relying on a secure payment gateway.
A payment gateway is a technology that captures and transfers payment data from the customer to the acquiring bank. It acts as an intermediary between your business website and the financial institution, ensuring the secure transfer of sensitive payment information. Payment gateways authorise payments for e-transactions, enabling businesses to securely accept credit card payments, digital wallets, and other forms of online payment.
Key Security Features of Payment Gateways
Below are some of the key security features a payment gateway must incorporate to ensure secure transactions:
- Encryption and SSL: Encryption converts data into a secure code to prevent unauthorised access. Secure Socket Layer (SSL) certificates ensure that data transferred between the customer and the merchant is encrypted and secure.
- Tokenization: Tokenization replaces sensitive payment information with a unique identifier or token. This token is used during transactions, keeping the actual payment data secure and reducing the risk of data breaches.
- PCI DSS Compliance: The Payment Card Industry Data Security Standard (PCI DSS) sets security standards for organisations handling credit card information. Compliance with PCI DSS ensures that payment gateways adhere to stringent security measures to protect cardholder data.
- Fraud Detection and Prevention Tools: Advanced tools such as CVV verification, address verification, and AI-based fraud detection systems help identify and prevent fraudulent transactions, safeguarding both businesses and customers.
- Trustworthiness: Ensure that the payment gateway has a proven track record and industry certifications to back up its claims of security and reliability.
When selecting a payment gateway for your business, it is crucial to prioritise these key features before trusting them to process your transactions. A secure payment gateway ensures that your payment systems and processing are secure and insulates your business from fraud and hacking attacks.
Payment gateways lacking these essential features should not be considered for your business.
Benefits of Secure Payment Gateways for Businesses
A secure payment gateway such as SeerBit offers numerous benefits for businesses:
- Enhanced Customer Trust and Satisfaction: A secure payment gateway builds customer confidence, encouraging repeat purchases and fostering loyalty.
- Reduced Fraud and Chargebacks: By minimising fraud-related losses and reducing chargebacks, businesses can protect their revenue and maintain financial stability.
- Regulatory Compliance: Secure payment gateways ensure compliance with legal and regulatory standards, helping businesses avoid penalties and legal issues.
- Competitive Advantage: Prioritising security can serve as a unique selling point, setting businesses apart from competitors and attracting security-conscious customers.
Conclusion
In today’s digital economy, the impact of a security breach or payment fraud can be devastating for businesses. As the digital landscape evolves, so do the risks associated with it, making it crucial for businesses to choose secure payment systems proactively. Secure payment gateways are vital for maintaining both the success and credibility of any business in the modern digital age. By prioritising robust security measures, businesses can safeguard themselves and their customers, build trust, and ensure seamless transactions.
At SeerBit, we are committed to providing top-tier security to protect your business and customer data, while also delivering a smooth and efficient payment experience.
Discover how we can enhance your payment processes today!
Broadcasting
Global South Alliance Launches $72,000 Datafication and Democracy Fund to Support 2026 Research Projects

The Global South Alliance, a coalition of 26 digital rights organizations, launched today the second edition of the “Datafication and Democracy Fund” on December 9.

Global South Alliance
The Fund will provide more US$ 72,000 to support research and advocacy projects focused on datafication and democracy to be implemented in 2026.
The Datafication and Democracy Fund was launched during the fourth edition of the Data Privacy Global Conference, organized in São Paulo, Brazil. The Global South Alliance is jointly managed by Data Privacy Brasil, Aapti Institute, and Paradigm Initiative.
The members are Asociación por los Derechos Civiles, Bolo Bhi, Center for Communication and Governance, CIPESA, Derechos Digitales, Digital Rights Foundation, Dukingire Isi Yacu, Internet Bolivia, Pollicy, Research ICT Africa, Fundación Multitudes, InternetLab, Thraets, Jokkolabs Banjul, Aláfia Lab, Centre for Policy Alternatives, KICTANET, Tech Global Institute, Freedom Forum, TEDIC, Digital Access, Center for AI and Tech Innovation for Democracy and Masaar.
The call for proposals is open to non-profit, non-governmental organizations based in the Global South working on digital rights and related public policy issues. Previously supported organizations have addressed topics such as online child protection, data governance in electoral processes, biometric technologies in stadiums and large events, mandatory biometric data collection of migrants, and discriminatory surveillance and datafication practices.
According to the launch announcement, the Datafication and Democracy Fund “aims to finance research and public policy analysis projects that address critical questions arising from the impact of datafication on democracy.” The Alliance emphasizes that “datafication is a deep and complex process of social transformation: it shapes the provision of public services mediated by information technologies, the emergence of digital public infrastructures, the data-driven nature of elections, the reconfiguration of markets and platforms, and many aspects of civic life. Beyond deliberative processes and elections, datafication exacerbates democratic challenges such as transparency, due process, and respect for citizens’ autonomy.”
Selected applicants will receive grants of up to US$ 8,000 to support their research projects. Depending on the proposals submitted, between 8 and 12 projects will be funded. All funded projects must be carried out during 2026.
Applicants are required to submit:
A one-page cover letter outlining the organization’s background, experience, and motivation for participating in the research program;
A proposal of up to five pages detailing the topic, scope, methodology, expected results, and relevance of the project to digital rights and democracy in the Global South;
A detailed budget, not exceeding US$ 8,000, specifying how resources will be allocated across the proposed project’s components.
Applications must be submitted in English by January 30th 2026, through the designated online form.
Broadcasting
End of an Era as Multichoice Delists from JSE After Canal+ Takeover

South Africa’s leading pay-TV operator, Multichoice, owner of DStv and Showmax, will officially delist from the Johannesburg Stock Exchange (JSE) this week following its acquisition by French media giant Canal+.

DStv
The delisting, scheduled to take effect on Wednesday, Dec. 10, 2025, also applies to Multichoice’s ordinary shares on the A2X Markets.
The move comes after Canal+ completed a Squeeze-Out of remaining shareholders, securing full ownership of the company after nearly two years of acquisition efforts.
According to the company, the delisting remains subject to regulatory approvals from the JSE, the A2X, and the South African Reserve Bank. Canal+ has pledged to comply with conditions set by South Africa’s competition authorities and intends to proceed with a secondary inward listing on the JSE within nine months of the delisting.
Founded in 1985 with the launch of M-Net, Multichoice has been a household name across Africa for four decades. It introduced DStv in 1995, expanded into multiple African markets, and launched its streaming platform, Showmax, in 2015.
In 2019, Multichoice was spun out of Naspers, South Africa’s most valuable company, and later began secondary trading on A2X in 2020.
The acquisition by Canal+ marks a significant shift in South Africa’s media landscape. Local investors will no longer be able to hold direct stakes in Multichoice, but will only gain indirect exposure once Canal+ completes its planned inward listing.
Industry analysts say the takeover underscores the growing consolidation in global media markets, with Canal+ strengthening its footprint across Africa through Multichoice’s extensive subscriber base and sports broadcasting rights via Supersport.
Broadcasting
How Nigerian Companies are Leading a More Responsible Digital Transformation

By Kehinde Ogundare, Country Head, Zoho Nigeria
Artificial intelligence is everywhere–in polished social media posts, in the recommendations that guide our viewing habits, and in the bots that handle customer queries before a human agent steps in. On LinkedIn, AI-assisted writing has become standard practice. A year ago, more than half of English long-form posts that went viral were estimated to have been written by or assisted by AI. If that’s the norm on the world’s biggest business network, it’s no surprise that AI is driving conversations in Nigerian boardrooms as companies move from experimentation to embedding AI into their daily operations.

Kehinde Ogundare, Country Head, Zoho Nigeria
Part of the package
The Nigeria Data Protection Act (NDPA), modelled on the European Union’s General Data Protection Regulation, together with the Nigeria Data Protection Commission, requires companies to build privacy into their systems from the outset rather than adding it later. This clear regulatory framework has evolved alongside a rapid rise in AI adoption.
New research from Zoho on responsible AI adoption highlights the impact of the regulations. As per the report, 93% of Nigerian companies have already started using AI in their daily operations; 84% have tightened their privacy controls after adoption, and 94% now have a dedicated privacy officer or team, which is well above global averages.
The survey, conducted by Arion Research LLC among 386 senior executives, shows just how deeply embedded AI has become in Nigeria. One in four companies already uses it across several departments, and nearly a third report advanced integration. Financial services firms are pioneers in this sector, using AI to automate client interactions, streamline operations and sharpen their marketing, while staying compliant with data protection rules.
The NDPA has helped make privacy part of business planning. Four in ten companies now spend more than 30% of their IT budgets on privacy. Regular audits, privacy impact assessments and explainability checks are becoming standard practice.
Skills, compliance and capacity
Rapid adoption brings challenges. More than a third of businesses say that their biggest obstacle is a lack of technical skills, and another 35% cite privacy and security risks. Instead of outsourcing, most are building capacity in-house: nearly 70% of companies are training staff in data analysis, more than half are improving general AI literacy, and 40% are investing in prompt engineering for generative tools.
The understanding of the NDPA regulation, which came into force in 2023, has also improved. 65% of organisations see compliance as essential. Many voluntarily apply data-minimisation and transparency standards even when not required to do so, aligning more closely with international norms and easing collaboration with global partners.
Privacy is increasingly influencing business decisions — from investment priorities to system design. Companies are asking tougher questions: is specific data essential? How can exposure be limited? How can fairness and transparency be proven?
Trusted systems
As privacy becomes part of how technology is built, companies are being more cautious about the tools they use because they now want systems that protect customer data, with clear boundaries between data and model training, straightforward controls, and reliable records for compliance teams.
Demand for business software that balances productivity with privacy is also growing. Zoho, among others, has seen strong customer growth as more organisations are looking for platforms that support responsible data handling.
The study identifies three main reasons behind AI adoption: to make work more efficient by automating routine tasks, to support better decision-making by identifying patterns sooner, and to improve customer engagement through faster, more relevant interactions. But none of this can succeed without trust. Nigeria’s experience shows that privacy and innovation can reinforce each other when they’re built together.
There’s still work to do because some industries are moving faster than others, and smaller businesses often face the biggest hurdles in time, cost and skills. Enforcement is also patchy; while the law is clear, application across sectors and geographies is a work in progress.
The next steps are more practical, requiring investment in skills – from data analysis and AI literacy to sector-specific training – and for governance to be put in place, with clear responsibilities, written policies, and a plan for managing errors or breaches. Privacy impact assessments should become part of every new system rollout, enabled by technology.
As AI becomes fundamental to doing business, Nigerian companies that build it carefully and responsibly will be better able to compete at home and abroad.
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