Exposure to cyberattacks in the financial services sector is creating a growing demand for cyber-insurance, IFE OGUNFUWA writes
Banks and financial technology firms are beginning to see the need to explore cyber-insurance as a means of alleviating the impact of electronic payment fraud in the country.
Industry statistics show that Nigeria is losing about N127bn to cyber-fraud every year. A report by the Nigerian Electronic Fraud Forum also indicates that N2.19bn is lost to electronic payment fraud annually.
The Central Bank of Nigeria, according to findings, is taking the lead in adopting cyber-insurance coverage even as there is a growing interest by the Deposit Money Banks and fintechs in managing cyber-risks with an insurance policy.
While the sources of the fraud in the financial industry are known, electronic movement of money by cybercriminals, who hack into the system, has necessitated the need to seek insurance cover to mitigate losses.
Though most organisations prepare to mitigate cyber-threats by upgrading their cybersecurity system, insurers say many of them do not understand that system upgrade may not address some of the exposure they face.
The Assistant General…
