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PROJECT TOPIC:  CYBERCRIME AND BANK CUSTOMER'S AWARENESS : IMPLICATION FOR NIGERIAN FINANCIAL INSTITUTIONS
Department:  Banking and Finance
AMOUNT:  20,000
FORMAT:   MS WORD
PAGES:  95
 
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CHAPTER ONE

Introduction

            Modern Internet banking has evolved rapidly  in Nigeria. It has brought bringing enormous relief to the complex banking operation and services rendered. The evolution of the internet banking system has added value to the banking system in Nigeria, bringing services like online transfer, payment, and mobile banking, sematic data warehouse, automated teller machine, electronic fund transfer, point of sale, and electronic cheque, other after sales services. Nigeria has the highest number of internet users and mobile subscribers in telecommunication in the world , which has aided the patronage to internet banking. However, it has attracted the activities of hackers/cybercriminals.

            Cybercrime (computer-crime) is any illegal act targeted by means of electronic operations on the security of computer systems and the data process of them (Bougaardt and Kyobe,2011). Cybercrime now has a an increasing trend affecting the financial sector in the form of credit card fraud, automated teller machine scams, identity theft, website phishing, denial of service attack. The banking sector and financial institution are one of the sectors abruptly affected by cybercrime in Nigeria, despite the legal and security measures put in place to curb this menace.

            The rapid growth in cybercrimes is the main concern for financial institutions in 21st century and the need to protect the cyber space is becoming more critical than ever before. Creating awareness is of crucial importance when it comes to cybercrime prevention, and in the field of cybercrime related to Bank customers this issue is even more necessary. Cybercrime is one of the burning issues in today’s online banking industry in the world. For necessary measurements to be implemented, firms must understand the effects of cybercrimes.

            Financial firms need to be aware of online threats and must take into consideration all those measure that can assist in improving the awareness of individuals in regard of security and to maintain sustainable financial business environment (Reyns,2010). The effects of cybercrimes are more than the financial integrity of financial institutions and other firms. For necessary measurements to be implemented, firms must understand the effects of cybercrime. There is a  great need for financial firms to be aware of online threats and to take into consideration the necessary measures that can assist in improving the awareness of individuals in regard of security and to maintain sustainable financial business environment. An ounce of prevention is worth a pound of cure, but banks need to be ready and able to work closely with customers if an account is compromised or they detect suspicious activity. The faster a breach or fraud is confronted, the more likely the bank and consumer are to recover lost funds and protect data. Make sure customers understand the key actions they should take after a data breach, including finding out what information was stolen and if their personal data was included. Make it easy for them to set up fraud alerts on affected debit and credit cards and credit reports. It’s also necessary to show a clear roadmap for consumers to follow in the event of identity theft. The process can be confusing, so providing the tools to understand the specific steps can greatly enhance customer loyalty and engagement.

 

 

Statement of the problem

            Cyber-attacks are becoming more sophisticated and cybercriminals continue to develop insidious ways to breach networks. A breach can lead to online fraud, identity theft and corporate account takeover. Fraud committed against company bank accounts is a growing threat and cybercriminals can drain funds from a company’s bank account in minutes. Financial institutions in Nigeria ought to show sound security awareness training program to assist bank customers  to put up a defense against cybercrime.  The probability is high that a bank customer will at some point experience a cyber security incident. Above and beyond the financial and operational risk, cybercrime comes with substantial reputational risk for banks, as customers are far less likely to trust institutions whose products and services are frequent targets for breaches or hacks. While banks are ramping up their security initiatives to combat clever hackers, they often overlook one beneficial yet simple tactic: educating consumers in cyber security best practices they can take to protect themselves. Education of bank customers on the various activities of cyber criminals is an indispensable step toward properly managing risks, reducing fraud, and ensuring the safety of bank customers funds.

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