Combatting E-Fraud on Telecom Platform Building Consumer Confidence in the Digital Economy. In today's digital age, where our lives are intricately intertwined with technology, building consumer confidence in the digital economy is paramount. As individuals rely more on digital platforms for communication, financial transactions, and other essential services, it becomes crucial to establish a secure and trustworthy environment that safeguards user interests and protects their privacy. To mitigate the threats, there is a need to build consumer confidence in the digital economy - regulators must implement policies that facilitate collaboration; establishment of formal mechanism for information sharing, encouraging public-private partnerships within the telecoms industry as well as cross-sector to leverage expertise.

1. Combatting E-Fraud on
Telecom Platform:
Building Consumer
Confidence in the Digital
Economy
2nd quarter 2023 Open Forum of the
Industry Consumer Advisory Forum (ICAF)
By Nkemdilim Uwaje Begho

2. Overview
● Introduction
● Understanding the Threat of E-Fraud
● Stats
● Mitigating the Threat
○ Collaboration & Information sharing
○ Strengthening Security Measures
○ Awareness and Consumer Education
○ Policies, Legal Frameworks & Regulations

3. Telecom platforms
- easy targets for E-Fraud:
Being a vital part of the digital ecosystem,
Telcom platforms are particularly vulnerable to
e-fraud due to the large number of users and
the sensitive data they handle.

4. Introduction
● The rise of the digital economy has transformed the way
we conduct business, communicate, and access services,
with the telecom industry playing a pivotal role.
● However, as the digital landscape expands, so does the
risk of e-fraud, posing a significant challenge for both
consumers and telecom service providers.
● Combatting e-fraud on telecom platforms is crucial for
building consumer confidence in the digital economy
and ensuring a secure and trustworthy environment for
all users.

5. Understanding the Threat of E-Fraud
● E-Fraud encompasses various fraudulent activities, such
as identity theft, phishing scams, SIM card cloning, and
unauthorized transactions, which can lead to financial
losses and compromised personal information.
● The telecom industry, being a key player in the digital
ecosystem, is particularly vulnerable to e-fraud due to its
vast customer base and the increasing reliance on
mobile devices.
● E-Fraud not only affects individual consumers, but also
undermines trust in telecom providers and the overall
digital economy

6. Global E-Fraud: Stats
● The Federal Trade Commission’s (FTC) Consumer Sentinel Network
took in over 5.1 million reports in 2022, of which 46 percent were for
fraud and 21 percent for identity theft.
● According to the Federal Trade Commission (FTC) Consumer
Sentinel Network Data Book 2020, imposter scams were the most
common type of fraud reported in the United States, with losses
exceeding $1.2 billion.
● The United Kingdom's Office for National Statistics reported that
there were over 3.8 million incidents of fraud in England and Wales
in 2020, with a significant portion related to e-commerce and online
banking.
● Europol's Serious and Organised Crime Threat Assessment (SOCTA)
2021 highlighted that online fraud, including e-fraud, is one of the
most prevalent and profitable criminal activities globally.

7. E-Fraud in Nigeria: Stats
● According to the Nigeria Electronic Fraud Forum
(NeFF), Nigeria experienced a 63% increase in
electronic fraud cases in 2020 compared to the
previous year.
● In 2020, the Nigerian Communications Commission
(NCC) reported over 10,000 cases of telecoms-related
fraud, including SIM swap fraud and fraudulent
mobile banking transactions.
● The Central Bank of Nigeria (CBN) reported that e-
fraud accounted for over 90% of all reported fraud
cases in the Nigerian banking sector in 2020.
● The Nigerian Interbank Settlement System (NIBSS)
revealed that attempted fraud on Nigerian banks'
electronic payment platforms reached 3.5 billion Naira
(approximately $8.6 million) in Q4 2020.
● 59% of Nigerian E-banking Customers Have Been
Victim to Fraud

8. Key Challenges
● Evolving threat landscape: E-fraudsters are becoming increasingly
sophisticated, exploiting vulnerabilities in technology to carry out
their fraudulent activities.
● Increased Risk: Telcos double as as Mobile money operators, which
increases risk non digitally literate customers are exposed to.
● Lack of awareness: Many consumers lack the necessary knowledge
and awareness to identify and protect themselves from e-fraud,
making them easy targets.
● Lack of collaboration: Stakeholders across Telcos, consumers, law
enforcement and regulators don’t work together sufficiently
● Limited regulation: Current regulations may not be comprehensive
enough to address the evolving nature of e-fraud, leaving gaps that
fraudsters exploit.

9. Mitigating the Threat
Awareness &
Consumer
Education
E-Fraud Threat
Mitigation
Policy,
Regulation &
Legal
Frameworks
Security
Stakeholder
Collaboration

10. Collaboration & Information Sharing
● Building consumer confidence in the digital economy requires a
collaborative approach between various stakeholders and telecom
providers.
● Regulators must implement policies that facilitate collaboration
between stakeholders - telecom companies, government bodies,
financial institutions, and law enforcement agencies - to share
information, intelligence, and best practices.
● Establish formal mechanisms for information sharing to quickly
disseminate alerts and warnings regarding emerging e-fraud
threats.
● Encourage public-private partnerships within telco sector as well as
cross sector to leverage expertise and resources for effective
prevention and response to e-fraud incidents.
● International cooperation and information sharing among countries can help
tackle cross-border e-fraud activities more effectively.

11. Security Measures
● Telecom providers should implement multi-layered security measures,
such as two-factor authentication, encryption, biometrics or facial
recognition and secure data storage, to protect customer information
from unauthorized access and identity theft.
● Regular security audits, vulnerability assessments, and timely software
updates are crucial to identify and address potential security loopholes.
● Collaboration with cybersecurity experts and law enforcement agencies
can enhance the industry's ability to detect and prevent e-fraud
incidents effectively.
● Regulators must provide incentives (tax benefits or grants) and support
for telecom companies to invest in robust cybersecurity infrastructure.
● Implement mandatory data protection and privacy standards for
telecom companies, ensuring they adhere to robust practices when
handling user data.

12. Awareness and Consumer Education
● Introduce educational digital and traditional integrated marketing
and communications campaigns and initiatives to raise awareness
among users about e-fraud risks, safe online practices, and how to
recognize and report suspicious activities.
● Collaborate with schools, universities, associations, networks and
community organizations to incorporate digital literacy programs
into curricula and member engagement.
● Clear communication channels and accessible educational
resources, such as helplines, dedicated support teams, and
informative websites, should be established to educate customers
and assist customers in reporting and resolving e-fraud incidents.
● Foster transparency and consumer protection by requiring telecom
companies to publish their data protection policies and undergo
regular audits.

13. Policies, Legal Frameworks & Regulations
● Governments and regulatory bodies should collaborate with telecom
providers to establish comprehensive legal frameworks and regulations
that address e-fraud effectively.
● Ensure regulations cover areas such as data protection, cybersecurity
standards, incident reporting, and user protection.
● Regularly review and update regulations to keep pace with evolving e-
fraud techniques and emerging technologies. This requires a quick and
often ad-hoc policy review process.
● Adequate penalties and strict enforcement against e-fraud perpetrators
can act as strong deterrents and promote a secure digital ecosystem.
● Set up regulatory mechanisms to continuously monitor and evaluate
the effectiveness of implemented e-fraud prevention policies.

14. Conclusion
Key strategies to build consumer confidence: By implementing the strategies
below, businesses and policymakers can foster consumer confidence, instill
trust, and drive the growth of the digital economy while safeguarding user
interests and privacy.
● Enhance Data Protection and Privacy
● Strengthen Cybersecurity Measures
● Foster Industry Standards and Certifications
● Transparent Communication
● Collaborate with Government and Regulatory Bodies
● Educate and Empower Users
● Promptly Address Issues

15. Conclusion
● Comprehensive regulations: Implementing comprehensive and up-to-date regulations
specifically addressing e-fraud on telecom platforms is essential to provide a legal framework
that protects users and holds responsible parties accountable.
● Strong cybersecurity measures: Mandating robust cybersecurity infrastructure, data
protection, and privacy standards for telecom companies helps safeguard user data and prevent
unauthorized access, bolstering the overall security of telecom platforms.
● Collaboration and information sharing: Encouraging collaboration between stakeholders,
including telecom companies, government bodies, financial institutions, and law enforcement
agencies, facilitates the sharing of vital information, intelligence, and best practices to effectively
combat e-fraud.
● User education and awareness: Prioritizing user education initiatives that promote digital
literacy and raise awareness about e-fraud risks empowers individuals to recognize and report
suspicious activities, making them less vulnerable to e-fraud on telecom platforms.
● Continuous monitoring and evaluation: Establishing regulatory mechanisms for continuous
monitoring, evaluation, and updates to e-fraud prevention policies ensures the effectiveness of
implemented measures and enables proactive adaptation to evolving e-fraud techniques.

16. Questions?
nkem@futuresoft-ng.com
https://www.linkedin.com/in/nkemdilimuwajebeg
ho/