Cyber security concerns rises as banks embrace social media

Concerns are that the brand and customers of banks in Nigeria will become the main targets of cyber criminals as more financial institutions increasingly adopt social media platforms as a means of providing banking services, an industry analyst told Benuzorreports at a cyber security conference in Lagos. Tope Aladenusi, head, Security, Privacy and Resiliency, Deloitte, Aladenusi warned that organisations who delve into social media banking without necessary cyber security systems will have to deal with reputational loss, Intellectual property leakage and identity theft via social engineering, which could have adverse impact on the long-term sustainability of the business. 

"Some Banks in Nigeria have commenced social media banking and this will make their brand and customer prime targets of cyber criminals", he added. GTBank Plc is one of such banks. The bank recently commenced its social banking service on Facebook. The service allows the public to open accounts and get customer service support via Facebook. Sources say other banks are also planning to roll out services on social media in coming weeks as they explore this new opportunity to grow customer base by connecting to them on a more personal level. Many banks have already integrated social media strategies into their Customer Relationship Management (CRM) systems. 

Speaking at a Cyber Security Breakfast Session, Aladenusi told Benuzorreports that social media is evolving to become the de-facto method of information dissemination. In view of this trend, most banks, are been compelled to increase their online presence, he further added. Globally, businesses are grappling with the issue of cybercrime. Two years ago, hackers orchestrated multiple breaches on Sony's PlayStation Network knocking it offline for 24 days and costing the firm an estimated $171 million. Last week, LivingSocial, the second-largest daily deal firm behind Groupon Inc was hit by a cyber attack that compromised the data of more than 50 million customers.

In 2012, the internal website of the US Federal Reserve bank was broken into by hackers who stole the details of about 4, 000 bank executives. Social media throws up complex security challenges for banks. Over the past two years, there has been a massive surge in the number of malware attacks on the website of many banks. One prominent malware attack urges customer to provide bank details, "in order to enhance the security of online transactions as per regulatory guidelines for additional level of authentication." The growth of the banking industry, according to analysts, and Nigeria's gradual transition into a cashless mode is driving this unhealthy attraction. 

In fact, many Nigerian hackers previously based overseas are returning home because the 'Cashless Project' offers fresh opportunities for them to perpetuate electronic fraud. "There are lots of infected machines today and many customers are not even aware of it. The banking industry is witnessing lots of malware and phishing attacks currently and it poses significant challenges for banks in terms of revenue loss", Dennis Lupambo, group manager, alternative channels, Ecobank said at another cybercrime forum in Lagos. The public sector in Nigeria is also witnessing a rise in cyber attacks.

In 2012, cyber attacks on Nigerian government owned websites increased by 60 percent, according to a report. "This has shown no one is immune to these attacks, its only a matter of time before they shift focus to other industries", Aladenusi noted. Speaking in the same vein, Gordon Love, regional director for Africa, Symantec, a cyber security firm, pointed out that Nigeria does not really appreciate the magnitude of cybercrime and how it can derail an economy. "Over 20 million malicious threats and attacks were released into the cyberspace in the last twelve months. These threats are here in Nigeria."

Love said Nigeria has become a target for the cyber criminals globally. The booming economy, increase in bandwidth capacity and the proliferation of mobile devices, he explained were some of the reasons why Nigeria is a such a huge attraction. Many governments across the globe have place cyber security on the top list of their agenda. They are adopting strict measures, stepping up investment in cyber security and developing robust policies and harmonising cross-border legislations on cybercrime to curb the menace. Unfortunately, Nigeria, Africa's sleeping giant  is lagging behind in this regard.