Report: Why Nigerians are losing trust in digital payment providers

A report by a cyber-security firm, Kaspersky, has revealed reasons some Nigerians are losing their trust in digital payment service providers as a result of increasing financial losses being experienced on the platforms.

Citing its most recent digital payment survey, Kaspersky said 37% of respondents from Nigeria experienced financial losses associated with threats when using online banking and mobile wallet services.

According to the report, the majority of those who have lost money (97%) lost up to $1,000 equivalent as a result of these incidents, while 3% of the respondents reported a loss of more than $1,000 equivalent.

As a result, Kaspersky said 43% of users reported that they have less trust in digital payment providers.

Psychological effects

While noting that beyond the financial losses, the cyber threats on digital payment platforms also have psychological effects on the users, Kaspersky said:

•  “The impact of a cyber-threat targeting digital payments does not just impose a financial burden on consumers but also affects them psychologically. For example, 60% of respondents from Nigeria said that they were very anxious about getting their money back. 80% also stated that they became more vigilant after experiencing a cyber-incident, and 65% installed security solutions like an antivirus on their infected devices.”

Commenting on the report, the Head of technical experts at Kaspersky, Emad Haffar, said:

• “Since the beginning of the pandemic, 64% of users in Nigeria faced at least one incident when using digital payments. That’s why it’s increasingly important to know how to interact securely with any emerging technologies, including online banking and mobile wallet services. And all stakeholders, like government, digital payment providers, users, and even cybersecurity companies need to come together to create a sustainable and secure payment ecosystem.” 

Security measures to use digital payment 

To help users embrace digital payment technologies securely, Kaspersky experts suggest the following:

• Do not share your PIN, password, or any other financial information with anyone online or offline.
• Avoid using public Wi-Fi to make any online transactions.
• Use a separate credit or debit card to make online transactions. Set a spending limit on the card which can help keep a track of financial transactions.
• Shop from trusted and official websites.

For developers, banks, and companies involved in providing digital payment services, Kaspersky recommends the following measures:

• Invest in holistic cybersecurity solutions that can help detect fraud across multiple levels of online payment processes and consumer touchpoints.
• Conduct cyber awareness training for employees continuously. This will help employees know the red flags to look for when an organization is under attack and understand their role in protecting the organization.

In case you missed it

Earlier, Kaspersky said it blocked 161,272 financial threats in Nigeria in 2022. These attacks were aimed at stealing financial information such as credit card numbers and login credentials and usually rely on social engineering tactics to lure victims.

Source: Norvanreports