June 29, 2023

By Theresa Igata, Snr. Correspondent

The liberalisation of the Nigerian telecoms sector which started about 22 years ago has triggered tremendous growth as the sector continues to contribute substantially to the socio-economic transformation of the country in the areas of employment, productivity, economic growth as well as contributing to the Gross Domestic Product (GDP) of the country.

With this development comes intricacies.

In a world of over 8 billion population there are 5.18 billion internet and online users according to a latest world digital population April, 2023 report by Statista.

This figure shows that the majority of people across the globe have their lives and activities on the internet, either through the use of a mobile device or a laptop.

From surfing e-commerce sites to e-banking, mobile apps, social media etc. the ‘world is indeed at the tip of our fingers’.

Notwithstanding the positive effects of these developments to consumers of telecoms services, keeping pace with the changing dynamic landscape of technology has come with its complexities.

A report by the Financial Institutions Training Centre, FITC on Frauds and Forgeries in Nigerian Banks Q2, 2022 report, shows that mobile fraud which includes fraud activities through USSD transactions had the highest occurrence from a total of twenty-seven thousand three hundred and fifty-six (27,356) incidents of Frauds and Forgeries reported, followed by computer/web and PoS fraud.

While N449 million was lost to mobile Fraud in the said quarter, an assessment of the magnitude-based ranking of fraud shows Computer/Web fraud tops the list, accounting for N3.62 billion.

While e-fraud is a significant problem in itself, this unprecedented crisis in the telecoms sector continues to aggravate existing challenges.

Boosting consumer confidence, securing the networks

E-fraud is a pressing issue not just in the telecoms sector, as it affects the overall safety and security of the country’s digital landscape, as such, boosting consumer confidence has become key to dealing with the many complexities in the sector.

The Nigeria Communications Commission, NCC, regulator of the telecoms sector believes that implementation of multi-layered security measures by telecoms operators can guard against e-fraud, Umar Garba Danbatta, the Executive Vice Chairman of the NCC stated at the Second Quarter Industry Consumer Advisory Forum(ICAF) themed: ‘Combating E-Fraud on Telecom Platform: Building Consumer Confidence In The Digital Economy.

According to him, “As we navigate the ever-evolving landscape of technology, we must address the growing concern of fraudulent activities in the digital realm and take proactive measures to safeguard the trust and confidence of consumers”, he said.

“If we want Nigerians to continue to use these networks, we have to secure them”, Danbatta told journalists.

NCC’s crucial role in combating e-fraud

As a regulator, the role of the NCC in combating e-fraud cannot be over-emphasised.

The Commission notes that:

*There must be the establishment of a comprehensive legal frameworks and standards that mandate sound security practices for telecom operators.

*The legal framework must focus on data protection, privacy and incident response, ensuring that operators are held accountable for any lapses in security on their respective networks.

*The NCC also type-approves communications equipment to ensure that they conform to global standards and are interoperable with various relevant technologies.

*The Commission collaborates with Mobile Network Operators to ensure the safety of their networks and conducts regular audits and assessments to verify compliance and encourage a culture of cyber-security within the industry.

Role of Operators

*Telecom operators must therefore invest in robust infrastructure, employ state-of-the-art security measures, and conduct regular audits to identify vulnerabilities and address them promptly.

*Operators should implement stringent authentication protocols, two-factor authentication, and encryption mechanisms to safeguard customer data and prevent unauthorized access.

All hands on deck

As crucial as the role of the NCC and telecoms operators are, we all also have a role to play in the overall fight against e-fraud, as “social action is needed from citizens”, according to the EVC, of NCC.

Nonetheless, stakeholders continue to harp on the importance of consumer education and robust infrastructure to handle the cyberspace and in keeping pace with disruptive risk and digital transformation.