By
As Artificial Intelligence (AI) becomes more involved in Nigeria’s financial services, fears are growing about the potential misuse of personal data and increased cybercrime. Nigeria loses an estimated $500 million (about N675 billion) annually due to cybercrimes, with the financial sector alone losing N8 billion in 2022.
AI has helped improve banking and financial services, but experts worry about the risk of exposing private information. AI systems can sometimes make data more vulnerable to hackers, putting customers at risk. Since 2004, financial companies worldwide have lost billions to cyberattacks, and the use of AI by criminals is only making the problem worse. Attackers are increasingly using AI tools to create more advanced and targeted attacks, making it harder to defend against them.
According to a report from the Computer Crime Research Centre, the cost of cybercrime could rise to $12 trillion by 2024, partly because AI will allow cybercriminals to develop new malware and ransomware faster. The report also warns that new technologies like deepfakes could make phishing scams and impersonation attacks even more dangerous.
Experts like Dr. Jacob Afolabi, former director at the Nigeria Deposit Insurance Corporation, say AI’s ability to collect and analyze large amounts of data raises concerns about data privacy and security. As AI systems become more sophisticated, cybercriminals could find new ways to exploit weaknesses in financial institutions’ systems. Dr. Afolabi calls for stronger regulations on data protection and more secure practices to handle sensitive information.
The International Monetary Fund (IMF) also warns that cyber threats are a major risk to the stability of financial systems globally. To protect against these threats, the IMF suggests that central banks and financial authorities create stronger national cybersecurity plans and regulations.
In Nigeria, leaders in the financial and tech industries are also sounding the alarm. Akua Gyekye, Director of Government Affairs at Microsoft Africa, stresses the need for clear rules to balance the benefits of AI with the protection of personal data. Kelechi Nwankwo, head of corporate planning at the Nigerian Communications Commission (NCC), agrees that industries must adapt to the challenges posed by rapid technological changes.
Although AI offers many advantages for financial services, the risks to data security cannot be ignored. Experts are urging the government and industry stakeholders to work together to create stronger safeguards to protect customers from cybercrimes.
