Cybercrimes and Digital Banking Economy: A Strategic Intervention from Global Best Practices

Osim James Ekpe (), Gbadebo Odularu () and Ishmael Obaeko Iwara ()
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Osim James Ekpe: College of Health Technology
Gbadebo Odularu: Department of Economics, Academic Support Building B, Howard University
Ishmael Obaeko Iwara: Vaal University of Technology, Development of Education

A chapter in Behavioral Cybersecurity and Ethical AI in Relational Economics Context, 2026, pp 413-426 from Springer

Abstract: Abstract Like many other economies globally, Nigeria’s digital economy is witnessing exponential growth driven by the increasing adoption of fintech solutions, e-commerce, and mobile banking platforms. This digital transformation poses a growing threat of cybercrime to individuals and businesses, while also presenting significant entrepreneurial opportunities for convenience and economic expansion. In other words, rapid digitization presents a double-edged sword; without effective mitigative measures, the paradigm’s gains can swiftly be undermined by pervasive cyber vulnerabilities. These threats manifest in various forms, including phishing attacks, ransomware incidents, and data breaches, each carrying substantial financial and operational consequences. For individuals, the repercussions often begin with something as seemingly innocuous as a stolen password, which can lead to compromised social media accounts. Businesses, especially small enterprises with limited financial buffers such as Point-of-Sale (PoS) agent banking ventures, suffer disproportionately. The cumulative effects of cyber incidents include theft-induced fund losses, significant downtime, and high recovery costs. In the banking sector, where consumer trust is paramount, a single disruptive cyber event (for example, a ransomware attack) can cripple operations, causing cascading adverse effects such as reputational damage, lost customers, and ultimately, business closure. This qualitative narrative review study draws on global best practices. It proposes strategic interventions that Nigerian businesses can implement to enhance their cybersecurity posture, particularly within the PoS micro and small business landscape. Key findings of the study include investing in comprehensive cybersecurity education, training, and awareness initiatives; collaborating with local and international cybersecurity experts to secure necessary resources and knowledge; advocating for the more vigorous enforcement of data protection laws; and adopting innovative, AI-powered cybersecurity solutions to bolster threat detection and response capabilities. In addition to these strategic measures, consumer protection remains a critical concern. For instance, financial institutions like First Bank emphasize, “Your security means everything to us”. Customers are urged to: Verify the authenticity of links before clicking and to avoid downloading unknown attachments, not respond to unsolicited messages requesting personal or transactional details, remember that banks will never contact you via SMS, email, or social media to ask for sensitive information such as OTPs, PINs, or passwords, and regularly monitor your accounts for any suspicious activity and report such concerns immediately through official customer care channels or by visiting the nearest branch. By implementing such proactive measures, Nigerian PoS enterprises can safeguard digital operations and foster a resilient e-banking economy that not only benefits entrepreneurs, investors, and consumers alike but also promotes sustainable local economic growth and enhanced digital participation across the nation.

Keywords: AI solutions; Cybersecurity; Digital economy; E-commerce; Financial loss; Small enterprises; Consumer security; PoS banking; Cyber fraud; Nigeria (search for similar items in EconPapers)
Date: 2026
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Persistent link: https://EconPapers.repec.org/RePEc:spr:sprchp:978-3-032-01214-2_18

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DOI: 10.1007/978-3-032-01214-2_18

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