Banks tech firms combat n2 19bn e fraud with cyber insurance
Banks and Tech Firms Combat N2.19bn E-Fraud with Cyber Insurance
In a bid to mitigate the growing threat of e-fraud, Nigerian banks and tech firms are increasingly turning to cyber insurance to protect their customers and businesses from financial losses.
According to a report by the Nigerian Communications Commission (NCC), the country lost a staggering N2.19 billion (approximately $6.3 million) to e-fraud in 2020 alone. This has prompted financial institutions and tech companies to take proactive measures to safeguard their customers' data and prevent financial losses.
Cyber insurance is a type of insurance policy that provides financial protection against cyber-attacks, data breaches, and other types of e-fraud. The policy covers losses resulting from unauthorized access to sensitive information, such as credit card numbers, passwords, and personal data.
Leading Nigerian banks, including First Bank of Nigeria, Guaranty Trust Bank, and Zenith Bank, have already partnered with international insurance companies to offer cyber insurance policies to their customers.
For instance, First Bank of Nigeria has partnered with AXA Mansard Insurance to offer a cyber insurance policy that covers customers against online fraud, identity theft, and data breaches. The policy provides financial compensation to customers in the event of a cyber-attack, as well as assistance in recovering stolen data and restoring business operations.
Similarly, Guaranty Trust Bank has partnered with Allianz Nigeria to offer a cyber insurance policy that covers customers against e-fraud, data breaches, and other types of cyber-attacks. The policy provides financial protection against losses resulting from cyber-attacks, as well as assistance in investigating and resolving cyber-related incidents.
Tech firms, including e-commerce platforms and fintech companies, are also embracing cyber insurance to protect their businesses and customers from e-fraud. For example, Jumia, a leading e-commerce platform in Nigeria, has partnered with AXA Mansard Insurance to offer a cyber insurance policy that covers customers against online fraud and data breaches.
The increasing adoption of cyber insurance in Nigeria is a positive development, as it provides an additional layer of protection against e-fraud and helps to restore trust in the financial system. As the country continues to digitize its economy, the need for cyber insurance will only continue to grow, and it is essential that financial institutions and tech firms prioritize this critical aspect of risk management.
Key Takeaways:
- Nigerian banks and tech firms are increasingly turning to cyber insurance to combat e-fraud.
- Cyber insurance provides financial protection against cyber-attacks, data breaches, and other types of e-fraud.
- Leading Nigerian banks, including First Bank of Nigeria, Guaranty Trust Bank, and Zenith Bank, have partnered with international insurance companies to offer cyber insurance policies to their customers.
- Tech firms, including e-commerce platforms and fintech companies, are also embracing cyber insurance to protect their businesses and customers from e-fraud.
- The increasing adoption of cyber insurance in Nigeria is a positive development, as it provides an additional layer of protection against e-fraud and helps to restore trust in the financial system.