KPMG Nigeria has advised financial institutions in the country to be wary of the digital transformation sweeping the banking industry, especially with the coming of Fintechs.
The advisory company, who stated this while making a presentation at the Digital Summit, organized by Inlaks in Lagos last week Friday, posited that with the coming of digital transformation, the fraud typologies are also changing.
According to Mr. John Anyanwu, Associate Director, KPMG Nigeria, who delivered the presentation titled ‘Cybersecurity Threat to Digital Banking: A Global Perspective’, noted that digital transformation is changing fraud typologies.
“Digitization comes with numerous opportunities, but it also comes with risks that need to be managed. There is an increased drive for digitization. However, this drive is not adequately matched with commensurate investments in risk management,” Anyanwu posited in the presentation at the Summit, which attracted financial stakeholders, including regulators from Nigeria and Ghana.
To respond to these threats, KPMG advised banks to be agile and update their fraud risk frameworks, hone the technology and look to next gen prevention and detection solutions.
He also revealed that cybercriminals are obtaining access to personal data, via data breaches, and using personal information to gain a customer’s trust in scams or takeover their account.
“Fraudsters are becoming more sophisticated and agile in their approach to diversify their efforts from social engineering/ account takeovers to scams where customers are the weak link,” he added.
Noting further, Anyanwu explained that the insider threat can be as great, if not greater than external fraud as they are privy to your systems and customer data, stressing that technology alone is not enough.
“It is important to plan outside of technology to obtain efficiency and optimum performance across governance/people and processes. Banks must enhance their ability to analyse data within an open banking environment and navigate through APIs. Lead digital innovation with security as an enabler,” he advised.