Protecting Consumers from Cybercrime in the Banking and Financial Sector: An Analysis of the Legal Response in Nigeria

Abstract

This paper 1 examines the consumer protection regime under the Nigerian Cybercrimes Act with a view to assessing the extent to which it protects consumers from cybercrimes in the banking and financial sector. It finds that the regime is not adequate as it does not place sufficient obligations on banks and financial institutions to safeguard the personal information of their customers from unauthorized access. Additionally, the findings suggest the absence of an explicit regime for determining liability for unauthorized payment transactions in situations where a consumer’s electronic banking or payment information is compromised. The article also highlights examples of legal regimes in Europe and the United States that could be adopted in order to strengthen the consumer protection regime under the Act. Finally, some challenges impeding the protection of consumers from cybercrimes in the Nigerian banking and financial sector are pointed out along with proposed responses to address them.