Prof. Umar Danbatta, EVC, with other other participants at the ICAF meeting

As digital adoption increases along with boost in e-commerce, the alarming fraud threats to digital users in the telecommunication industry have been brought to the fore.

Chairman, Industry Consumer Advisory Forum (ICAF) of the Telecom sector, Maxi Akpa Emeka raised this alarm in Lagos at the just concluded 2nd Quarter of the 2023 Open Forum of the Industry Consumer Advisory Forum with the theme: Combating E-Fraud on Telecom Platform: Building Consumer Confidence in the Digital Economy Protocol

Tracing consumer protection in the Telecom sector to The Nigerian Communications Act (NCA 2003) the Chairman reminded participants at the forum that Fraud has escalated as digital adoption has increased.

The situation according to Maxi Emeka requires that organizations simultaneously combat fraud and provide customers with a seamless digital experience.

According to the ICAF Chairman, “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 organizations 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.

At the same time, fraud threat vectors have become significantly more sophisticated. They include nation-state actors, organized criminals, cyber terrorists, and insiders, as well as local fraud rings”.

Maxi Emeka attributed the cyber attacks and Associated frauds to advance in technology, noting that the speed currently experience in the telecom sector also comes with huge challenge that must be tackled headlong.

“Advances in technology present challenges as fraud attacks occur with greater frequency, speed, and effectiveness. Commonly used methods include phishing (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), destructive malware, social engineering, deep fakes, and fraud-as-a-service exploit kits.

“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 said

It against this backdrop he said 2023 2nd quarter open forum of the Industry Consumer Advisory Forum (ICAF) decided to bring this issue to bear as it affects consumers a great deal.

Welcoming participants drawn from the Telecom service providers, Regulators and Consumers, the Chairman commended The Nigeria Communications Commission for keeping the forum going and for the untiring activities of the members of ICAF that were representatives of different groups and organizations.

The Chairman urged stakeholders to generally provide for the protection and promotion of interests of Consumers including Differently Abled Persons and the Elderly in pursuant to the NCA Act

He said the forum was organised to build Consumer Confidence in the Digital Economy and urged  the retinue of experts and participants to come out with recommendations that will strengthen the core capabilities and improve abilities of the service providers and regulators to continually identify and address vulnerabilities arising from new fraud methods and patterns.