COMBATING E-FRAUD ON TELECOM PLATFORMS
AND BUILDING CONSUMER CONFIDENCE IN THE
DIGITAL ECONOMY
BY
PROF. UMAR GARBA DANBATTA, FNSE, FRAES, FAENG, FNIEEE
EXECUTIVE VICE CHAIRMAN/CEO,
NIGERIAN COMMUNICATIONS COMMISSION
PRESENTED AS THE KEYNOTE ADDRESS
AT THE
2 ND QUARTER 2023 INDUSTRY CONSUMER ADVISORY
FORUM (ICAF) MEETING (OPEN FORUM)
ON
THURSDAY, JUNE 22, 2023
AT
RADISSON BLU HOTEL, IKEJA, LAGOS
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Protocol
• Heads of Departments and Agencies here present
• Management and staff of NCC
• Representatives of all Security Agencies here Present
• Representatives of Financial Institutions
• ICAF Chairman and Members
• Telecommunications Operators
• Industry Players
• Our Esteem Telecom Consumers
• Gentlemen of the press
• Ladies and Gentlemen
It is my privilege to stand before you today to deliver this keynote address
on a topic of paramount importance: Combating e-fraud on telecom
platforms and building consumer confidence in the digital economy. As we
navigate the ever-evolving landscape of technology, we must address the
growing concern of fraudulent activities in the digital realm and take
proactive measures to safeguard the trust and confidence of consumers.
Digital technology offers Nigeria the opportunity to grow and diversify its
economy from the overdependence on agriculture or oil and gas export
proceeds. The launch of the Nigerian National Broadband Plan 2020 – 2025
as well as the National Digital Economy Policy and Strategy 2020 – 2030
(NDEPS) attests to the fact that Nigeria is poised to join the comity of
nations and become a global leader in transforming its economy into a
digital one.
In recent years, Nigeria has witnessed remarkable growth in the digital
economy, revolutionizing the way we communicate, transact, and conduct
business. The telecom sector plays a pivotal role in enabling this digital
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transformation, providing the infrastructure and connectivity that fuel our
interconnected world. However, with these advancements come new
challenges, one of which is the rising tide of e-fraud and cybersecurity
concerns.
E-fraud encompasses a wide range of malicious activities carried out via
electronic means, including identity theft, phishing, hacking, and
unauthorized access to personal and financial information, with the
intention to defraud or take advantage of victims. These criminal activities
may not only cause significant financial losses but also erode consumer trust
in the digital ecosystem.
The NCC as the regulator of the communications sector has a crucial role
to play in combatting e-fraud. We must establish comprehensive legal
frameworks and standards that mandate sound security practices for
telecom operators. The legal framework must focus on data protection,
privacy and incident response, ensuring that operators are held accountable
for any lapses in security on their respective networks. The NCC also type-
approves communications equipment to ensure that they conform to global
standards and are interoperable with various relevant technologies. In this
regard, The Commission collaborates with Mobile Network Operators to
ensure the safety of their networks and conducts regular audits and
assessments to verify compliance and encourage a culture of cybersecurity
within the industry.
In accordance with the Nigerian Communications Act 2003, telecom
operators have a responsibility to ensure the security and integrity of their
networks and to prevent it from being used in, or in relation to, the
commission of any offence under any law in operation in Nigeria. With the
increasing uptake of digital financial services and the advent of disruptive
technologies, the issue of cybersecurity has become increasingly important.
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Telecom operators must therefore invest in robust infrastructure, employ
state-of-the-art security measures, and conduct regular audits to identify
vulnerabilities and address them promptly. Additionally, operators should
implement stringent authentication protocols, two-factor authentication,
and encryption mechanisms to safeguard customer data and prevent
unauthorized access.
There is also the concern about how personal data is collected, stored,
shared and exploited. Fortunately, NDEPS 2020-2030 adequately addresses
the protection of telecom consumers against the threats of cybercrime,
encouraging them to embrace digital finance and supporting them to
contribute to the Digital Economy. Pillar #6 of the NDEPS, which deals
with soft infrastructure, has proven to be proactive. The soft infrastructure
pillar focuses on strengthening public confidence in the use of digital
technologies and participation in the Digital Economy. The pillar will
address the importance of cybersecurity and other standards, frameworks,
and guidelines that encourage citizens to embrace a digital culture. Data
privacy and the deployment of technologies like the public key infrastructure
are addressed in this pillar.
Recently, the Nigeria Data Protection Act 2023 was signed into law to
provide a legal framework for the protection of personal information and
the regulation of how personal information is processed, among other
things. The NCC is also in the process of developing more elaborate Data
Protection Regulations to ensure the protection and privacy of data in the
Nigerian communications sector. It is important to mention that the
Commission has issued the Consumer Code of Practice Regulations 2007
which among other things, provides for the protection of consumer
information.
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Law Enforcement Agencies must also collaborate closely with telecom
operators and regulatory bodies to investigate and prosecute e-fraud
perpetrators. Enhanced coordination, information sharing, and dedicated
cybercrime units can go a long way in deterring criminals and bringing them
to justice. Strengthening international cooperation in combating cross-
border e-fraud is also imperative, as cybercriminals often exploit
jurisdictional limitations.
The Commission, committed to fulfilling its mandate and passionate about
driving Digital Economy in Nigeria, has continued to implement initiatives
to Protect, Inform and Educate telecom consumers in this regard. Through
its Consumer Affairs Bureau (CAB), the Commission undertakes constant
Consumer Education with a significant part of this effort dedicated to
providing information that equips the Consumer to thrive in a world that
has embraced digital finance. Information dissemination materials on how
to safeguard themselves while using telecom platforms to access digital
financial products are available on the NCC consumer portal whilst
hardcopies are distributed at consumer outreach events.
To further protect telecom consumers, the Nigerian Communications
Commission’s Computer Security Incident Response Team (NCC-CSIRT)
periodically notifies telecom consumers of the latest cybersecurity threats
and how to avoid falling victim to them. NCC-CSIRT in collaboration with
the Nigeria Computer Emergency Response Team (ngCERT) at the office
of the National Security Adviser has been at the forefront of protecting
telecom consumers from cyber threats. The provision of timely advisories
has helped to protect consumers from being unfairly targeted by cyber-
attacks, which goes a long way in ensuring that they can access digital
services without suffering unwarranted losses. We strongly believe that by
fostering a culture of vigilance and knowledge, we can collectively reduce
the success rate of e-fraud attempts.
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However, combatting e-fraud is not just the responsibility of industry
stakeholders and authorities. Consumers too, must be active participants in
this battle against e-fraud. Building consumer awareness and promoting
digital literacy is crucial to empowering individuals to protect themselves.
Telecom operators should educate their customers about potential risks,
provide guidance on secure online practices, and offer user-friendly tools to
monitor and manage their accounts. Regular communication with
customers, promptly addressing their concerns, and providing timely
updates on security issues are vital in establishing trust. To build consumer
confidence in the Digital Economy, we must emphasize transparency and
accountability. Telecom operators should be transparent about their security
measures, privacy policies, and incident response mechanisms. Collaboration
with third-party security firms and independent audits can also help validate
the integrity of telecom platforms.
Furthermore, fostering innovation in security technologies is critical to
staying ahead of e-fraudsters. Advancements in artificial intelligence,
machine learning and data analytics can enable the detection of anomalous
behaviors, identify potential threats, and respond swiftly to emerging fraud
trends. Collaboration between academia, industry, and research institutions
can drive innovation in cybersecurity and produce effective
countermeasures against e-fraud.
In conclusion, combatting e-fraud on telecom platforms and building
consumer confidence in the digital economy requires a collective effort.
Telecom operators, regulatory bodies, law enforcement agencies, and
consumers must collaborate, each fulfilling their respective responsibilities.
By investing in robust security infrastructure, implementing stringent
protocols, promoting awareness, and fostering innovation, we can create a
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safer digital ecosystem that inspires trust and enables the full potential of
the digital economy.
Together, let us rise to the challenge and build a future where the telecom
platform is not only a gateway to the digital world but also a fortress against
e-fraud.
Thank you.
Prof. Umar Garba Danbatta, FNSE, FRAES, FAENG, FNIEEE
Executive Vice Chairman/CEO
Nigerian Communications Commission
