Nigerian Bank Faces Reality of Cyber Crimes - the Cost $40 million

News of a forty million dollar cyber crime has given firms operating in the financial services sphere a cause for concern. A Nigerian bank has been plagued with a hefty financial loss at the hands of technology. The report shows the sensitive impacts of technology despite defence mechanisms in place.

According to reports, a Nigerian man is wanted by police for his part in a scam that has cost a bank USD forty million. A gang disguised as maintenance staff unfolded the crime with the help of an insider. The culprits were identified as they attempted to withdraw the illegal money. Financial services firms spend a significant amount on safeguarding their infrastructure in the modern technological world, data from the BIS shows that UK firms spend over $1.1 billion on cyber security software. The systematic threats of cyber crimes have been present for several years, however with the increasing dependence on electronic methods, its systems come complete with ‘so- called safety software’ with accompanying solutions, similar to the way a home computer comes with standard anti-virus software.

Like in all developing economies with the deployment of technology, Nigeria has seen a rise in cyber threats, the country's central bank working alongside the main financial institutions in order to address the problems through collective solutions. The central bank estimates annual losses in excess of $245 million as a result of cyber crime.

DoS and FX

Financial services brokers operating in the margin derivatives sector face the difficulties of cyber crime, the popular Denial of Service (DoS) attacks are common in the sector and are increasing across the board in scale and effectiveness.

Brokerage firms face a higher level of threat as softwares such as MetaTrader 4 have limited safety protocols offered by providers, thus putting greater pressure on a firm's resources.

Piyush Parekh, CEO of VIBHS, a Dubai-based financial services firm, responded to Forex Magnates in light of the cyber crime faced by the Nigerian bank: “The mentioned case highlights the Volatility and danger firms face, our IT teams constantly review and test our facilities in order to prevent any issues.”