Lagos: Nigeriaโs fastโgrowing digital payments sector is facing mounting risks as weak cybersecurity systems leave platforms vulnerable to fraud. Industry leaders warn that lapses in protection are eroding consumer trust, discouraging investment, and slowing the adoption of cashless transactions.
Obadare spoke on Friday in Lagos at the Payments Forum Nigeria (PAFON) 3.0 event, where industry stakeholders examined challenges facing digital payments and financial innovation.
He cautioned that advancing payments innovation without robust cybersecurity risks would erode hard-won progress and undermine the adoption of digital platforms.
He noted that most cyberattacks in Nigeria exploit basic flaws in internet-exposed payment systems rather than advanced tactics.
โEighty per cent of attacks are unstructured and take advantage of weak systems already exposed to the internet,โ he said.
Obadare labelled cybersecurity as the top concern in payments, warning that, unless proactively addressed, fraud and vulnerabilities will persist.
Operators often prioritise launching solutions over security, resulting in systems vulnerable to opportunistic attacks.
The CEO noted that cybercriminals were increasingly leveraging emerging technologies, including artificial intelligence, to scale attacks and exploit loopholes more rapidly.
He stressed that regulations, particularly those issued by the Central Bank of Nigeria, remained essential for enforcing standards and strengthening the integrity of financial systems.
Obadare added that past interventions, such as migration from magnetic stripe to chip-based cards, significantly reduced incidents of card cloning fraud.
He called for a balance between innovation and cybersecurity, urging stakeholders to take immediate action by investing in people, processes, and technology to build sustainable digital trust and ensure growth.
According to him, consumers must actively improve their awareness and adopt safe online practices, taking personal responsibility to limit exposure to fraud risks in the digital space.
He concluded that digital payments will only achieve broad, natural adoption if trust is established through robust security.