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By Henry Uche [email protected],
With unemployment figures spiking as the economy tumbles, many youths are resorting to cyber crimes to survive.
The worrisome development, which has attained a global dimension, has amplified calls for system fortification against cyber terrorists.
It is on this note that security experts have warned players in the insurance sector to brace for a surge in cyber attacks as more Nigerians (and others) are exploiting loopholes in the digital space to hit establishments.
Interestingly, the insurance sector has embraced technology in its operations as stakeholders (including registered brokers, agents, actuaries, loss adjusters) are deploying digital tools to improve customer experience.
Nonetheless, the digital space has come under cyber threat by fraudsters who see their attack on people and corporates’ privacy as a source of income. Daily Sun gathered that some fraudsters no longer hide their identities as some pose as consultants to hack individual or corporate accounts.
A cyber security firm in its recent threat report, revealed that ransomware attacks against small and medium enterprises (SMEs) was the biggest cyber threat to business owners in 2023.
The report titled “Cybercrime on Main Street” revealed that other threats against corporate organisations are keyloggers, lockbit, akira, blackcat, spyware, data extortion, unauthorised remote access and attackers who steal data and credentials to gain unauthorised remote access, extort victims, deploy ransomware and more. The report also analysed Initial Access Brokers (IABs) fraudsters who specialise in breaking into computer networks and into SMEs networks.
This report emphasises the need for corporate organisations to be more sophisticated and formidable in the management of data surveillance and information of both internal and external customers has became indisputably essential.
In a recent webinar organised by the West African Insurance Companies Association (WAICA), in collaboration with Organisation Eastern and Southern Africa Insurers (OESAI), Aajimatics Inc, and Canadian International Development Agency (CIDA), experts drawn from different countries in the bloc, tipped stakeholders in the insurance value chain of imminent surge in cyber attack just as the banking and the telecommunications sectors came under attack in recent years.
Also, the National Insurance Commission (NAICOM), under the leadership of the Commissioner of Insurance, Mr. Thomas Sunday, has always alerted operators to be watchful against cyber attacks, but more importantly – invest in cyber security and by extension let policyholders conscientiously imbibe and embrace cyber insurance to avert loss of fortunes.
Mr. Sunday demonstrated this in June 2023, when the management of the National Information Technology Development Agency (NITDA) led by its Director General, Kashifu Abdullahi, paid a the Commission a courtesy visit. The purpose of the visit was to activate the process of institutionalising cyber insurance to help strengthen the digital ecosystem in Nigeria. The NAICOM chief used the opportunity to reaffirm his commitment to give cyber security and insurance a top priority, as the two agencies agreed to implement the plans.
Insurance operators were charged to collaborate and put in measures to mitigate the risks of cyber threats. This, they can do by investing in cyber security and offering strong cyber insurance products and services.
The experts reported that about 90 percent of businesses in Africa have no adequate cyber security insurance protocol, making them vulnerable to attacks like hacking, malware, hacktivists, botnets, rootkit, brute force, spoofing, Trojan, insider threats, spyware, ransomware, day exploits, etcetera.
In an address, the Secretary General/ CEO of WAICA, Mr. Davis Iyasere, charged insurers and other stakeholders to boost capacity and design standardised cyber insurance products and services to address cyber risks. “Cyber threat is a challenge across all sectors which is inimical to goodwill, finance, customer patronage, hence the need to pay much attention,” he urged.
The president of WAICA, Mr. Eddie Efekoha, tasked operators to deploy tech and innovation to counter the activities of cybercriminals. He called for the enforcement of existing laws and strengthening of institutions to curb the excesses of cyber traitors.
He stressed that there is need for regulators to boost capacity, provide protection and enforce regulatory framework to mitigate the level of exposure to risk.
“While the regulator boosts its capacity, enforce existing laws and strengthen institutions, insurers need to also go deeper into tech and innovation. Academic curriculum on insurance should be expanded to incorporate specialised studies such as cyber security and risks,” he said.
Abdullahi, represented by Emmanuel Edet, acting director of Standards Guidelines and Frameworks Department of Legal Services and Board Matters Unit of the NITDA maintained that cyber threat is not limited by boundaries, hence anyone could be a victim.
The DG said that as demand for digital goods and services increase exponentially, cyber attacks are bound to surge. Already, Africa lost $3.8bn in 2020 to cyber attacks. He added that to reduce the financial impact associated with cyber attacks, there is need to increase awareness, collaboration, harmonisation and unity of purpose by all stakeholders especially among government ministries, departments and agencies to fight cyber threats for economic growth and development.
The Secretary General of OESAI, Rose Wanda; representative from FSD Africa, Mr Elias Omondi; Ag. Commissioner of National Insurance Commission, Ghana, Mr. Michael Kofi Andoh; and other industry captains at the high profile discourse, decried slowness of market to innovate and provide minimum protection for businesses, hence the need to close the cyber insurance gap.
They said there must be risk mitigation measures to know the cyber risk profile of customers to enable underwriters design fit- for -purpose policies, while insurance regulators in the region should strive to build a secure environment and collaborate with cyber security experts.
“Cyber attack is a global threat, therefore, every individual and corporates need cyber risk management strategy to be in a better position for global competition.
Nigerians need assurance of security and trust to buy the idea of insurance. So, African insurance companies must learn to take cyber security more seriously just like it is done in Europe and Asia,” they said.
They charged organization like hotels, academic institutions and other public places to put in place strong cyber security apparatuses since people lodge in their data like instance, Phone number, email, vehicle registration number, etc.
“However we must help ourselves by strengthening and enforcing cyber crime laws and punish cyber criminals seriously while organizations attract people with cyber security skills” they added.
