We live in a digital world where basically the use of computers, the Internet, and other sophisticated technology is at its climax. Today, people pay bills, send and receive payments, review bank transactions and balances over the Internet, and use mobile phones.
Such innovations are intended to make life easier and more comfortable. In less than 5 years, crime and fraud have changed from an anomaly of teenage vandals into a multi-billion-dollar industry. Every year, millions of people fall victim to such activities.
There are many stories of cybercrime. Such hacking of some of America’s confidential information almost ruined diplomacy between many countries.
Business experts argue that although it is very cheap and convenient to use online as a platform for business transactions, since most businesses have graduated from using traditional means of operation, the risks involved are immense.
According to Mr. Mustapha Mugisa, a certified fraud examiner and the Former president of the Uganda chapter Association of Certified Fraud Examiners, digital fraud is one of the biggest emerging risks in Uganda as people embrace technology and its advancement.
Uganda is currently in the take-off technology level, whereby every business is embracing technology and using the internet to reach out to the international market. In telecoms, insurance, and banking, for example, we have seen the emergence of mobile money transfer and mobile commerce (mCommerce) whereby people use their mobile phones to pay bills like water, electricity, DSTV, or even buy goods at the supermarkets. This is making our country ripe for high risks of digital fraud unless something is done now to protect the users. Such automation between many companies increases the risk of fraud because the more the interfaces, the higher the risks involved.
Recently, almost all telecom companies operating in Uganda and offering mobile money services have entered into partnerships with other service providers to make money transactions easier and convenient, but this means that the scale of digital fraud increases to a greater magnitude. Unlike in the past, it was a bit difficult to steal a lot of information at once because manual documents are bulky.
In most cases, fraud is directly or indirectly aided by internal staff, following the lack of training and sensitization on what digital fraud means and how to protect company information from social engineers.
The use of technology is advancing daily, and there is no way one can avoid the wave of change. Companies should, however, train their staff and implement clear security policies – clearly explaining the forms of digital fraud, staff responsibilities in averting the same, and repercussions for failure to comply, among others. Companies should also aim to have a security-aware culture throughout the business,s as well as protecting their major digital resources from hackers, social engineers. Implementing secure firewalls to protect computers connected to the Internet should be a must across the board.
It’s high time companies invest in digital security defense measures and ensure that they are integrated and adequately up to date to respond to the ever-changing and increasingly sophisticated technologies being utilized in such crime. Some people are connected to the Internet, but have not implemented security measures to block hackers.” He advises.
With the introduction of wireless, a lot of people now prefer to work at the nearby cyber cafe since it is free, not knowing that they are at greater risk of being hacked into and revealing confidential company information, like business strategy, because the person controlling that network can access their profile easily.
According to a study done by Pricewaterhouse Coopers’ Forensic Technology Solutions team, companies should use risk assessment strategies to ensure their investment is targeted towards those security controls that offer the greatest business benefit, as well as having a clear understanding of their legal rights and responsibilities in relation to digital fraud, and aim to implement internationally-recognized standards of best practice.
Fraud in the digital world is not likely to end any sooner because the more the technology becomes sophisticated, the higher the risks involved. It’s high time the government, through regulatory bodies like the Bank of Uganda, stepped in to provide assurances of the security of emerging technologies like mobile money services, thereby reducing identity theft, fraud, money laundering, and embezzlement from companies.
Take the lead in the fight against digital fraud
Digital fraud will continue to evolve. The only question is: Will you evolve with it?
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