Nigerian Fintechs Urged to Report Cyberattack Issues Adequately

Fintechs in Nigeria have been encouraged to report issues of cyberattacks adequately.

This statement was expressed by the President of the Fintech Association of Nigeria, Mr. Ade Bajomo while speaking at the Fintech Association of Nigeria Social meet, held on the 15th of September, in Lagos.

Mr. Bajomo urged Nigerian Fintechs to report cases of cyberattacks on their platforms, rather than see it as something to be ashamed of.

He explained that when Fintechs expose any data breach on their system, it will enable the association and regulators to swing into action to prevent such incidents from reoccurring.

He added that when Fintechs hide cases of cyberattacks, it gives the fraudsters more room to continue with such tricks repeatedly which makes it difficult to combat.

In his words,

“When Fintech companies and banks get attacked, they think it is a disgrace, so they hide it and keep quiet. The problem is that, that is exactly what the fraudsters want.

“The more companies continue to keep quiet, the more they can use the same trick over and over again”.

While admitting that there is no such thing as one hundred percent security both in the physical and digital world, Mr. Bajomo stated that it is imperative for Fintechs to invest heavily in their security, while noting that fraudsters also invest a phenomenal amount of money because they see it as a business.

In a bid to ensure maximum security against fraud within the Nigerian Fintech space, the Nigerian Fintech Association has set up a new sub-committee within their governing body that oversees and guides the activities of the association.

Notably, the association set up a committee of CEOs, chaired by renowned banker Uzoma Dozie. Within the Fintech Association, the committee is working to set up a framework where Fintech companies can report cases of fraud and get the needed assistance.

While it is understood that Fintechs reporting fraud cases can help regulators address the issue to prevent it from re-occurring, one major reason why most Fintech companies are hesitant to disclose cyberattacks is due to reputation concerns.

They believe that admitting a security breach can damage trust and confidence, which can lead to the loss of customers, investors, and partners. 

However, it is important to note that while there may be initial reasons for delaying disclosure of attacks, these companies are expected to eventually disclose security breaches in a responsible and timely manner. 

Failure to disclose breaches may lead to additional problems and may erode trust even further when later discovered.

Notably, as the Nigerian Fintech Association works towards setting up a framework where Nigerian Fintech companies can report cases of fraud and data breaches, it will help to improve security and mitigate the occurrence of cyberattacks and fraud in the Nigerian Fintech ecosystem.