YOUTHS AND CYBER FRAUD IN NIGERIA;CAUSES AND ITS EFFECTS ON NATIONAL ECONOMY

Cyber fraud is the crime committed via a computer with the intent to corrupt another individual’s personal and financial information stored online. Cyber fraud is the most common type of fraud and individuals and organisations need to be vigilant and protect their information from fraudsters.The introduction and innovation of the internet, the computer, and mobile devices has given rise to the increase of cyber fraud in Nigeria and the world at large.

 Cyber frauds in Nigeria are perpetrated by youths within the age limit of 18 – 45, who have taken advantage of the fast growth in information technology, to swindle private and public businesses of their hard earn valuables. The rate at which youths get involved in this crime is becoming alarming, as it is said to have a negative effect on the future of the nation, and has created a bad international image for the country.

 The existence of unemployment, bad governance, poverty are the major causes youths engaged in cybercrime, especially those from the rural background. We will analyze the impacts of cybercrime on the youths of Nigeria, how to come out of this menace and ways to restore the glory of Nigeria.   

 The 20th century introduced the use of technology innovation in almost every sector of the economy, enhance connectivity among similar sectors and allow  easy  communication  while  transacting business or performing other activities.  Powered by  the   internet  of  things,  wide  area network,  cyberspace is  said  to be  overcrowded with  cyber  activities. 

 This  has  also  attracted cybercriminals  or  unauthorized  intruders  of  all sort, loitering for vulnerability, waiting to attack their victims.  Cyber crimes are criminal activities  carried  out  using  electronic  devices (computer),  the  communication  network (internet)  and  data  with  the  sole  purpose  of extorting  valuables  from  victims,  once  a vulnerability is exploited. 

 Cyber fraud is targeted on the victim’s computer, with  the  intention  to  spread  malware,  obtain illegal information, and gain unauthorized access to make  a profit or steal vital  information from victims.  

Internet crime in Nigeria is socially organized and highly  networked, they  are  assisted  by insiders and bank staff, who leaks vital customer’s details and  facilitate  payment  transfer  through domiciliary  accounts,  credit  cards,  and  money grams.

Cyber fraud is the most common and threatening form of fraud which takes place internationally. The cyber world has been expanding and growing throughout the twenty-first century, allowing fraudsters to hack victims' personal and financial information in a variety of ways. Fraudsters can use the information which they gather to then financially fund themselves, or worryingly they might use this money to fund terrorism. Therefore, it is essential that individuals and organisations are aware of how to protect themselves against cyber fraud.

OVERVIEW OF THE TOPIC         

As a result of the high rate of unemployment, bad governance, poor educational system, and poverty in Nigeria, youths are now involved in cyber fraud as  a major  source  of livelihood  also  known as advance  fee  fraud,  which  in  most  cases,  has portrayed a negative image on Nigerians globally. 

Nigeria is rank third in the world behind the USA (United  State  of America)  and the  UK  (United Kingdom) for engagement in cyber fraud, a claim by  the Federal  Bureau of  investigation and  it’s Internet fraud Complaint Centre, the record did  not  take  into  account  the  fact  that  only  a certain  percentage  of  victims  report  cases  of cyber fraud. 

 To  participate  in  these  acts, intelligence and knowledge on smart-tech are very necessary,  educational  qualification  is  of  little importance.   Some of the cases to be sited in this study are as follows:  - An  arrest  was  made  of  a  high-profile entrepreneur,  Obinna  Okeke  (Owner  of Invictus group of company), who was arrested and  arraigned  before  a  US  Attorney  office where he pleaded guilty to a computer-based intrusion fraud scheme that resulted in $11m (Eleven million Dollars) loss of his victim.

Secondly, the popular Ramon Olorunwa Abbas (aka  Hushpuppi) was  arrested  alongside few Nigerians in Dubai, they are been investigated and undergoing trial on their involvement for money Laundry, Computer intrusion, and BEC scheme. Dton (aka Bill Henry) 25 years Nigerian, who buys  and sells  stolen  credit  card credentials, using  Aspire  Logger,  Origin  Logger,  and Nano core.

 The  Economic  and  Financial  Crime Commission (EFCC) in Nigeria, along with the Federal Bureau of Investigation (FBI) arrested 281 individuals for various  crimes, of  which 167 were Nigerian youths. In 2017, Nigerians are rated 37% users of online transactions within Africa countries, 7% of these online transactions are fraudulent in nature.

 An  estimate  of  N250  billion  and  N288  billion financial  loss  was  recorded  in  2017  and  2018 respectively  due  to  cyber-attack  on  business, banks, and government infrastructure in Nigeria, this  has  increased  highly  with  the  general lockdown in 2020.  Nigeria lost the sum of $500 million per annum on  cybercrime  which  is  less  than  its  Gross Domestic Product (GDP), those most affected are the banks.

HOW  THEN  ARE THE  NIGERIAN  YOUTHS INVOLVED IN CYBER FRAUD?

Every nation depends on its youths for the future. What then can be said, when the youths destroy its future today? The reasons behind these decisions are not far-fetched, youths in the country are faced with  unemployment,  lack  of  adequate  social amenities,  poverty,  hunger,  and  bad  education. The educational system has not made it easy as recent statistic shows that 3% of youth drop out of school.

Cyber fraud activities are motivated by the influx of youth to the urban city where it is lucrative to be established. It’s surprising to note that youths travel out of Nigeria to other countries for their hide out, and sure location to carry out their activities without an easy trace. Youths in Nigeria find it difficult to get white-collar jobs, therefore canvass for any means for survival.  A vote of no confidence has been declared by the youths  on the  good governance in  the  country, some lives are lost as a result of hosting peaceful protest. 

   

ECONOMICAL EFFECTS

The  common  negative  effects  Cyber fraud has generally  are  revenue  losses,  disruption  of business, profit pilferage, and welfare losses. In most  cases,  affected  stakeholders,  don’t  have records  of  losses  encountered  or  let  say  the conceal losses information, projecting loses based on assumptions.

 Million  to billions of naira  are lost  to cyber fraud every  year,  but stakeholders prefer  to  count  it  as  the  cost  of  running  the business, a tradeoff for the benefit of the business, and trade value, for continuity.

Other Effect of Cyber fraud - Huge cost incurred to fix damages caused by cyber fraud,  to prevent  further  action  in the future. - Reputational  mistrust  as  a  result  of unauthorized access to data. - Loss of creditworthiness as a result of identity theft. 

 WAYS TO CURB NIGERIA YOUTH FROM INVOLVING IN CYBER FRAUD

 - Enabling  Cyber  law  or  Policy:  The government should  enact stringent laws  that reduce  youths’  participation  in  cyber fraud, what we have presently is weak.  - Upgrade  to  high  tech  and  sophisticated hardware- The nation needs to introduce the use  of  forensic  intelligence  to  enhance  the technique  to  tackle  cyber fraud,  which includes high-security gadgets. 

 - Parental guidance and good societal value: A  good  up  bringing  begins  from  teaching family values by parent and guidance. Parent should  stand  as  good  role  model  to  their children. 

 - Creation of job opportunity: The idle hand they say is  the devil workshop (the  popular local quote) this might be the major reason why youths engage in crime, if they get busy, the possibility of curbing cyber fraud is high.

 

 REMEDIAL MEASURE TO CURB CYBER FRAUD

Organizational Weaknesses - The greatest loser of cyber fraud are third-tier nations, who are immature in cyber security.  

- Human  errors  are  the  major  weaknesses, hackers  take  advantage  of  to  commit cyber fraud. Human are users  of the  system, and  they are  bound  to  make mistakes,  it  is these  mistakes  hackers  seize  to  infiltrate system. 

- Consistent  backup,  if  not  carried  out effectively, will lead to system breakdown and reduce downtimes.

 - Using  outdated  technology/antivirus  are loopholes for criminals, they have automated tools that can overwrite outdated software. 

 - The use  of viruses  like ransomware, botnet, malware,  etc.  can  be  used  to  infiltrate computers, servers, and networks for the soul aim of stealing information.  - Using vendors  to develop in-house  software could be dangerous, since the database is not domicile with the organization.    

 

 - Creating more awareness by training users of the system is usually a challenge for most top stakeholders. 

 - Lack  of  contingency  planning  and  risk management  affects  organizational  decision making when it is related to cyber fraud.  Cyber Strength to mitigate the attack. - Good  practice  is  a  good  weapon  to  fight cyberfraud.   - If victims can adhere to cybersecurity tips, it will go a long way to help control cyber risk.

 - Frequent change of password, using the strong combination  for  a  password,  and  not  using the same  password  on  all  application,  can reduce cyber-attack. Regular update of system firewall, software antivirus  should  safeguard  against  cyber-attack. 

National  Strategy  to  control  Youth Involvement in cyberfraud. 

- Establish  a  computer  emergency  response unit.

 - Initiate the cybersecurity unit in all sections of the country. 

- Encourage  national  capacity  building  on cyber-attack. 

 - Adopt  intensive  cyberfraud  legislation  and threat countermeasures nationwide. - Provide  measures  to  reduce  national vulnerability  and  protect  national infrastructure.    

  

 The  study  has  fully  shown  that  youths involvements  in  cybercrime  have  been necessitated  by  diverse  reason,  if  properly contained will have a positive effect on the nation.  The government, family, and youths all have a vital role to play in this contest, collective action could better the interest of future existence, regain international  reputation  and promote  the nation economy.  Regulating  the  abusive  usage  of  the  internet, social  media  just  like  china,  japan,  and  other world  power  will  go  a long  way  to  check  the excesses of cyber fraud.

 NAME: GODWIN CHIJIOKE GOODNESS

 STATE CODE: OS/21A/2344

COURSE: MASS COMMUNICATION

INSTITUTION: FEDERAL POLYTECHNIC,OKO,ANAMVRA STATE

STATE OF ORIGIN: ABIA