Nigeria’s billion dollar mobile app market prone to software hackers

Experts fear that software hackers and cyber criminals can criminally exploit the mismanagement and non-regulation of mobile application development in Nigeria’s multi billion dollar mobile app market.

Another attraction in this direction for hackers, the experts say, is the exponential growth of apps over the years, on the back of rising smartphone, tablet and wearable device uptake, and significant improvement in broadband internet services.

In 2013,when the Nigerian mobile app market was valued at $1 billion at the mobile app summit, James Rutherford of Nokia Corporation said; “the sub-$100 smartphone is steadily becoming a reality globally.

Low end smartphones are increasingly available and these types of mobile phone will likely grow at a compound annual growth rate (CAGR) of 15 percent over the coming years.”

This forecast has come to pass as evidenced in the latest reports by GFK retail and technology, Nigeria, which lists Nigeria as the third highest tech device growth market globally in 2015, with a 13 percent growth between 2014 and 2015. According to the report, sales of technology devices rose from $5.1 billion in 2014 to $5.7 billion in 2015.

Analysts  however say that the increase in popularity of smartphones creates an open avenue for hackers and cybercriminals to move from the traditional desktop and laptop online fraud, to the mobile online space, which virtually has a more open access to personal and financial information, such as mobile banking apps, social media apps and the likes.

Femi Fadairo, Head, Industry Security, Nigeria Inter- Bank Settlement System (NIBSS), said at the Cyber security and Banking Fraud Summit 2016,that Nigerians are becoming too comfortable transacting on electronic channels  through their phones, without taking pre-cautionary measures.

“Online fraud is moving to mobile because so many people do not have anti-virus or anti- malware installed on their phones. We are so lax with our mobile phones compared to all the steps we take to make sure that our desktops and laptops are safe.

“There are so many apps that we download without even knowing what we are downloading. I have seen cases where, to download a simple torchlight app, a notification comes up asking to gain access to your phonebook or camera and some technology novice will just press ok without reading terms and conditions. These are ways fraudulent app developers use to gain access to vital information,” Fadairo added.

The decline in prices of gadgets has opened access to cheap smartphones for all, including ICT illiterates and fuelled the speedy adaptation of mobile applications.

With app developers earning 50-70 percent of retail price via the app store platforms of Apple, Windows, Google, Blackberry, Nokia and others, incubating young genuine developers could have significant multiplier effect domestically.

“Online fraudsters find the easiest channels to operate on and cannot be bothered with spending so much time trying to hack into protected web portals. Currently, the mobile phones seems to be the easiest channel, especially with most people having their banking apps, emails, contacts, pictures and other important information on their smartphones,” said Tunde Ogunniyi, Head of Card and E-banking  at Ecobank.

In the same vein, David Isiavwe, General Manager, Union Bank, said  online fraudsters are moving to newer and easier portals to conduct criminal activities and the traditional web fraud is gradually dying.

NIBBS statistics show that “ATMs recorded the highest volume of fraud in 2015 followed by POS. This relationship may not be unconnected to the fact that fraudsters leverage on both platforms to utilise the proceeds of fraud. The third most utilised channel is the web.”

Global mobile app store revenues are projected to reach $90 billion by 2018, primarily driven by growth of mobile subscriber base, strong mobile broadband penetration  and rising sales of smartphones.  For this reason, industry watchers are concerned about the security and regulation of app development and download, especially in Nigeria where the rate of  cybercrime is high.

JUMOKE AKIYODE