Increasing digital adoption has led to an escalation in the spate of fraud incidences across telecommunication platforms.
Chairman of the Industry Consumer Advisory Forum (ICAF), Mazi Akpa E. Emeka, said this in his brief during the 2nd Quarter 2023 ICAF Open Forum, held in Lagos recently.
According to him, increased digital adoption has simultaneously enabled an increase in new forms of fraudulent activities.
Mazi Emeka said the situation required that organisations should simultaneously combat fraud and provide customers with a seamless digital experience.
“Digital adoption leapfrogged a decade in days during the COVID-19 pandemic, accelerating the shift to digital and multichannel client service that began in the 2010s.
“The pandemic-driven boost to e-commerce is estimated to have exceeded $200 billion in 2020 and 2021.
“Increased digital adoption has enabled new forms of fraudulent activity and amplified the importance of effective fraud management for promoting growth and meeting customers’ increasing expectations for digital experiences.
“Although most companies have improved their digital user interface and experience, many have struggled to effectively enhance fraud controls without impairing the client experience.
“Many organisations report that they are being overwhelmed by the sheer volume of fraud attempts.
“In financial services, for example, many banks are so inundated by fraudsters that they cannot meet online origination targets
“They are unable to verify identities and authenticate customers while combating fraud,” the ICAF chairman said.
He also noted that, at the same time, fraud threat vectors have become significantly more sophisticated.
These fraudsters, Emeka said, included nation-state actors, organized criminals, cyber terrorists, and insiders, as well as local fraud rings.
“Advances in technology present challenges as fraud attacks occur with greater frequency, speed, and effectiveness.
“Commonly used methods include phishing, destructive malware, social engineering, deep fakes, and fraud-as-a-service exploit kits.
“Phishing occurs when a hacker pose as a trusted figure who uses carefully created emails to trick you into visiting a malicious website, downloading a corrupt file or handing over your password before using that information to gain access to a business network or your personal information.
“Faster movement of money usually increases the risk of fraud, and real-time disbursements are set to double within the year and beyond as economic hardship gets tougher.
“Risk rises further when unsuspecting customers inadvertently share their authentication details with fraudsters targeting their devices and accounts.
“The evolution of fraud threats has undermined the effectiveness of a reactive approach to combating fraud, which essentially focuses on stopping schemes one by one through manual reviews,” he added.
Mazi Emeka however said the theme: “Combating E-Fraud on Telecom Platform: Building Consumer Confidence in the Digital Economy”, was apt, adding that it could not have come at a better time than now.
He tasked stakeholders in the telecoms sector- the Nigerian Communications Commission (NCC), service providers and consumers of telecommunication products and services- to proffer solutions to the challenges posed by fraud to digital adoption.
“The Nigerian Communications Act (NCA 2003) generally provides for the protection and promotion of interests of consumers, including differently abled persons and the elderly.
“Pursuant to the NCA 2003, NCC , driven by its consumer-centric initiatives to ensure fair treatment as well as an acceptable Quality of Experience for consumers of ICT products and services, established the Industry Consumer Advisory Forum (ICAF).
“ICAF is not completely independent of the Commission but has been established as part of the Commission’s strategy to achieve its mandate for protection and promotion of the interests of consumers against unfair practices.
“These included but are not limited to matters relating to tariffs and charges for the availability of quality communications services, equipment and facilities.
“The 2023 2nd quarter open forum of the ICAF decided to bring this issue [fraud as it affects digital adoption] to bear as it affects consumers a great deal,” he said.
He said ICAF was proposing a new approach to combat e-fraud on the telecommunication platforms and ways of building consumer confidence in the digital economy.
“We intend to achieve this goal, using the current realities of this time to strengthen the core capabilities and improve our abilities to continually identify and address vulnerabilities arising from new fraud methods and patterns,” he added.
