E-fraud: A Threat to Youth Digital Inclusion
By Kabir Abdulsalam
TECHDIGEST – In many developing countries, the youth population is the largest, and most productive. It has the potential to drive financial growth and inclusion.
Yet, young people face many barriers that hinder their inclusion in economic activities.
Some challenges faced by youth, especially in countries like ours, are limited job opportunities.
This has led to an increase in perpetration of e-fraud, with its attendant effect on various sectors of the nation’s economy.
Citing a CBN report, the Director, Consumer Affairs Bureau, NCC, Efosa Idehen said the apex bank had revealed that e-fraud was costing the Nigerian financial sector staggering losses in monetary terms.
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He said: “As technology evolves, there is a growing concern over the rising trend of fraud perpetrated on telecom platforms across key sectors of the Nigerian economy known as e-fraud.
“This menace which follows wide acceptance of new methods of mobile banking and other payment systems has been discovered to cost the country whopping sums of money.
“The CBN rates e-fraud as the biggest risk in the sector which has widely affected electronic payment solutions such as Automated Teller Machines (ATMs), Nigeria Inter-Bank Settlement System (NIBBS) Instant Payment and mobile banking.”
E-fraud, as a menace, is not only committed in Nigeria, but even in many developed nations.
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A report by RiskOps stated that online fraud attacks increased by 233% between 2019 and 2021 in the US.
A key finding in the report is that despite the increase in online transactions by 65%, Florida alone witnessed a 202% rise in in-store credit card fraud.
This was found to be the riskiest state in America for card-present fraud.
The data indicates that the fraud was primarily committed in person in 24-hour convenience stores by criminals using stolen debit card PIN codes.
While Washington DC, New York, and Maryland were the second, third, and fourth riskiest states in the US respectively.
Other electronic methods used to defraud people/customers include through Phishing, Pharming, Skimming, or any other fraudulent means.
Findings show that Nigerian scams cost the British economy at least £150 million a year.
The reality of being a victim of e-fraud is not just about losing money. There are victims who attempt committing suicide; many homes have been broken and a lot of businesses crashed.
Way Forward
The vital question: Is digital wrongdoing or cybercrime the answer for joblessness and destitution in Nigeria? The response is obviously “NO.”
We all need to talk about fraud-related experiences with family and friends in a non-judgmental way.
Nowadays, we must recognise the prevalence of fraud and the ways it impacts individuals and organisations across society. Relevant agencies need to be more proactive in sensitising and educating Nigerians on fraud-related issues.
Above all, Nigeria, as a nation, needs to introduce the use of forensic intelligence to enhance the technique to tackle cybercrime, with high-security gadgets.
Kabir Abdulsalam, writes from Wuye District, Abuja
