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Nigeria Loses N127bn Annually to Internet Fraud

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cybercrime - Investors King
  • Nigeria Loses N127bn Annually to Internet Fraud

Nigeria is losing over N127bn yearly to cases of Internet frauds across all sectors of the economy, the Minister of Communications, Mr. Adebayo Shittu, has said.

The minister stated this in a document he made available to our correspondent on Friday, adding that majority of the frauds were perpetrated on foreign domain names and had become popular among Nigeria’s over 93 million Internet users.

Sequel to the development, he said that the Nigerian Internet Registration Association had finally begun taking concrete steps to protect Internet users as it commenced investigations into 30 complaints arising from .ng domain names abuse.

Our correspondent learnt that the investigation was being carried out by NiRA in collaboration with law enforcement agencies, including the Nigeria Police Force and the Economic and Financial Crimes Commission.

The development, it was gathered, followed NiRA’s decision to deal with the abuse within the Internet ecosystem by creating a desk for dealing with Internet abuse within the .ng ecosystem.

“Nigerians have responded positively with varied tales based on the complaints received, and NiRA has commenced investigations into those cases within its purview,” the NiRA President, Mr. Sunday Folayan, said.

As part of its efforts to arrest the situation, NiRA recently convened a meeting of representatives of relevant law enforcement agencies and stakeholders on the need to collaborate.

Agencies represented were the NPF through the Lagos State Police Command, the EFCC, Special Fraud Unit, ngCERT and the Central Bank of Nigeria, among others.

At the inaugural meeting, Folayan had highlighted the high rate at which crimes were becoming engrained in the national life, using .ng domain names.

He reported that NiRA had received over 300 complaints on issues of Internet abuse, ranging from domain name abuses to theft of individual personal details and financial fraud.

“Participants reviewed the Internal procedural process developed in-house by NiRA to deal with the incidence of abuses, taking note of the areas of cooperation and collaboration with the various agencies present.

“It was a huge success as the law enforcement agencies expressed their willingness to collaborate to tackle the identified abuse in the Internet ecosystem and protect Nigerians. Henceforth, the group will meet quarterly, having identified other stakeholders whose involvement is crucial to the success of the programme,” Folayan said.

The .ng is Nigeria’s country code Top Level Domain Name, which is managed by NiRA, a not-for profit registry organisation established by the National Information Technology Development Agency.

NiRA, over the years, has been embarking on various initiatives aimed at populating the use of .ng domain names, as against the penchant among Nigerian Internet users for foreign domain names such as .com, .uk and .net.

Is the CEO/Founder of Investors King Limited. A proven foreign exchange research analyst and a published author on Yahoo Finance, Businessinsider, Nasdaq, Entrepreneur.com, Investorplace, and many more. He has over two decades of experience in global financial markets.

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Telecommunications

Lagos Residents Frustrated by Rapid Data Drain, Call for NCC Action

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Telecommunications - Investors King

Lagos residents are expressing increasing frustration over what they describe as the rapid depletion of their data bundles.

Many subscribers are now calling on the Nigerian Communications Commission (NCC) to address their concerns as they suspect changes in billing practices by telecommunication providers.

Numerous subscribers have reported that their data does not last as long as it used to. A Lagos-based teacher, Mrs. Nafidah Zaynab, shared her experience, stating that a N2,000 data bundle, which previously lasted almost a month, now depletes within just a few days.

This sentiment is echoed by many, including Idowu Anabili, a trader who has reduced his data usage due to rising costs.

Abdullahi Yunus, who runs a café, noted a significant increase in his data expenses, spending between N70,000 and N100,000 monthly, up from N30,000. He attributes this spike to faster data consumption.

Telecom operators deny any wrongdoing, attributing the faster data consumption to increased usage by subscribers.

An anonymous official from MTN explained that the variety of activities performed on smartphones has increased, leading to faster data usage.

Airtel Nigeria’s spokesperson, Mr. Femi Adeniran, suggested that background apps and high-definition streaming contribute to the issue.

Despite complaints, operators assert they have not officially increased data prices. They emphasize that automatic app updates and other technical factors may be responsible for the perceived quick depletion.

Experts suggest that the challenging economic climate may be pressuring telecom companies to subtly reduce data value.

The industry has reported a 43% rise in operational costs, although no formal tariff hikes have been announced.

The NCC has clarified that it has not authorized any increase in data tariffs. The commission highlights technical factors like automatic video play and app updates as potential causes for quick data depletion.

In a bid to assist consumers, the NCC has advised turning on data saver modes and managing app updates to conserve data.

To combat the issue, Mobile Network Operators (MNOs) have initiated a campaign to educate consumers on optimizing their data usage.

They recommend practices such as disabling automatic updates and closing unused apps.

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Social Media

Meta Shuts Down 63,000 Nigerian Accounts in Sextortion Crackdown

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In a significant move to combat online crime, Meta Platforms Inc., the parent company of Facebook, Instagram, and WhatsApp, has removed 63,000 accounts in Nigeria linked to sextortion scams.

This sweeping action is part of Meta’s ongoing effort to address the growing threat of digital extortion on its platforms.

Unmasking the Scammers

The crackdown, which took place at the end of May, targeted accounts engaged in blackmail schemes.

These scammers posed as young women to coerce individuals into sharing intimate photos, which were then used to extort money from the victims.

The removal follows a Bloomberg Businessweek exposé highlighting the rise of such crimes, particularly affecting teenagers in the United States.

The Global Impact

The U.S. Federal Bureau of Investigation (FBI) has identified sextortion as one of the fastest-growing crimes targeting minors.

The schemes often lead to severe consequences, including the tragic suicides of more than two dozen teens.

In one high-profile case, the death of 17-year-old Jordan DeMay in Michigan led to the arrest of suspects traced back to Lagos, Nigeria.

The Role of the Yahoo Boys

Many of the dismantled accounts were linked to the “Yahoo Boys,” a notorious group known for orchestrating various online scams.

These individuals have been using social media to recruit and train new scammers, sharing blackmail scripts and fake account guides.

Meta’s Response

Meta’s spokesperson emphasized the company’s commitment to user safety, stating, “Financial sextortion is a horrific crime that can have devastating consequences.”

The company is continually improving its defenses and has reported offenders targeting minors to the National Center for Missing & Exploited Children.

To enhance protection, Meta has implemented stricter messaging settings for teen accounts and safety notices regarding sextortion.

They are also employing technology to blur potentially harmful images shared with minors.

Ongoing Efforts

Meta’s actions highlight the complex and evolving nature of online crime. The company has pledged to remain vigilant, adapting its strategies to counter new threats as they emerge.

“This is an adversarial space where criminals evolve to evade our defenses,” Meta noted.

Looking Forward

As digital platforms continue to grapple with issues of privacy and security, Meta’s recent actions demonstrate a proactive stance in safeguarding users.

By dismantling these networks, the company aims to reduce the prevalence of sextortion and foster a safer online environment for all.

The crackdown serves as a reminder of the need for continued vigilance and collaboration between tech companies and law enforcement to protect individuals from the harmful effects of digital exploitation.

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Fintech

Flutterwave Celebrates Inclusion in CNBC’s Top 250 Global Fintechs

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Flutterwave has been recognized as one of the Top 250 Fintech companies globally by CNBC and Statista.

Joining the ranks of industry giants like Ali Pay, Klarna, Piggyvest, and Mastercard, this accolade underscores Flutterwave’s impact on the financial technology sector.

This honor follows Flutterwave’s recent inclusion in Fast Company’s Most Innovative Companies list, highlighting the company’s pivotal role in transforming Africa’s payment landscape.

The recognition is a testament to Flutterwave’s dedication to innovation and excellence in providing seamless payment solutions across the continent.

Expressing gratitude, Flutterwave acknowledged its talented team, supportive board, reliable partners, and loyal customers for contributing to this success.

The company continues to drive progress in the fintech industry, reinforcing its commitment to enhancing financial accessibility and inclusion in Africa and beyond.

Flutterwave’s recognition on these prestigious lists marks a proud moment and a significant milestone in its journey, reflecting the company’s growing influence and leadership in the global fintech arena.

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