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Disrupting Financial Crimes and Organised Crimes: Nigeria's Perspectives
By
Mohammed Ukashatu, msiDepartment Of State ServicesFederal Republic Of Nigeria
c0c0 2014Kochi, Kerala,
India23rd August, 2014
Introduction
Financial crimes are among the largest challenges facing businesses and financial institutions worldwide today. Globalization and advancement in technology has opened up many possibilities for criminals to carry out financial crimes in new ways thereby complicating the wave of the crime.
Advantage of technology, weak controls in the financial system and difficulty in legal enforcement against financial crimes allow criminals to take negative advantage of the global financial system.
Types of Financial and Organised crimes
Advance fee and Internet Fraud (The
Nigeria Princes)
Money Laundering
Credit Card/ATM Card Fraud
Immigration and Identity Paper Frauds
Embezzlement/Bank Fraud
Kidnapping
ADVANCE FEE AND INTERNET FRAUD
(THE NIGERIA PRINCE)
THE FRAUDSTER
VSTHE GREEDY
Classic examples of Nigeria e-mail scam. (Source: Hoax-slayer)
MONEY LAUNDERING
Typical methods of laundering illegal proceed include establishing car sales business and importing exotic cars that usually spend years without being sold or investing in properties such as building houses and estates that stand for years without being occupied or sold.
CREDIT CARD/ATM FRAUD
Use of fake, cloned or stolen credit/debit cards of a customer by the fraudsters for either online purchases or withdrawal of money at automated teller machines without the consent of the cardholder.
IMMIGRATION AND IDENTITY FRAUDS
Prince of the Naija in London
EMBEZZLEMENT/BANK FRAUD
Although banks normally under-report fraud most especially perpetuated by their own staff, Nigeria Deposit Insurance Corporation reported that in 2012, Nigeria banks lost about N4.52 billion to a reported 3,380 fraud cases involving N17.97 billion. In November 2012, three employees of a Nigeria bank were arrested by the Police for been involved in $2 million fraud. The Nigeria Electronic Fraud Forum, a Forum of financial and security stakeholders with aim of sharing information/ideas, identifying loopholes that can be exploited by criminals and proffering remedies/solutions, in a meeting on 14th August, 2014 states that Nigeria’s financial sector has lost over N2 billion (about $12.5 million) this year and the figures may rise to N5 billion before the end of the year if urgent anti-fraud mechanism
are not put in place.
EMBEZZLEMENT/BANK FRAUD
In August 2013, eleven persons, including seven Nigerians, were arrested in New Delhi, India for involvement in net-banking fraud and fake lottery scam, according to Deccan Herald online. User IDs and passwords of bank accounts were hacked to facilitate fraudulent e-transfer of about Rs 53 lakh
(about $86,000) into 12 bank accounts in different cities through local
accomplices.
KIDNAPPING
Three (3) elements to be established in Kidnapping:
Taking a person without his consent;
Holding a person in illegal
confinement/ false imprisonment; and
Extortion of the victim through
ransoming.
KIDNAPPING
In July 2014:
Sixty one (61) kidnap incidents involving sixty nine
(69) victims were recorded.
N813,540,000.00 (about $5,018,821.92) were
demanded as ransom by the kidnappers.
N23,600,000.00 ( about $145,588.40) ransom
was paid.
Sixty (60) suspects were arrested by the Security
operatives.
A victim and a suspect lost their lives during a
rescue operations
Kidnapping Incidence recorded in 16 out of 37 States of Nigeria
in July 2014
Challenges of Disrupting Financial &Organized Crime in Nigeria
Inadequate Laws
- Nigeria’s laws do not recognise digital evidence- Punishments are insignificant compared to the
loss associated to the victims Lack of Awareness Silence of the victims especially Banks Inter-Agency rivalry Lack of adequate International Cooperation Societal problem (hero status of the rich no matter the source of the richness) Lack of adequate trainings for investigators Lack of adequate fund to acquire modern facilities to fight digital crimes
RECOMMENDED REMEDIES TO THE CHALLENGES:
Cybercrimes are committed by Criminals Without Border (CWB). Consequently, the following may be among the numerous remedies to the challenge of cybercrime: States should enact adequate laws to provide commensurate punishment; There should be adequate international laws that should be applicable against offenders irrespective of where they commit the crime; indeed cybercrime should be equated with crimes against humanity; There should be awareness both on the proper use of IT facilities and on handling suspicious mails.
RECOMMENDED REMEDIES TO THE CHALLENGES:
Enhancing International Cooperation. Global problem certainly requires global solution. Various National Agencies of any nation must collaborate and accept fighting cybercrime as amongst national security priorities. Government must provide funding for both training and facilities. Those fighting cybercrime must be ahead of the criminals both in terms of knowledge and equipment; and Victims should be encouraged to report the incidence. Otherwise, we will be leaving in delusion that all is well whereas none is well.
GOVERNMENT EFFORTS IN DISRUPTING FINANCIAL CRIME
Provision of Section '419' of Nigeria criminal code. The Code of Conduct Bureau and Tribunal Act Cap, Laws of the Federation 1990 Establishment National Drug Law Enforcement Agency (NDLEA) in 1990 Advanced Fee Fraud and other Related Offences Act of 1995 Establishment of Economic and Financial
Crimes Commission (EFCC) in 2002 Money laundering (prohibition) act of 2011
Establishment of Independent Corrupt Practices and Other Related Offences Commission (ICPC) in 2000 Establishment of National Digital Forensic Laboratory in the Office of the National Security
Adviser (ONSA). Establishment of CERT by the NITDA and ONSA. Proposed National Cybersecurity Strategy by ONSA Cybersecurity Bill currently with the National
Assembly Cashless Policy introduced by the Central Bank of Nigeria in 2014.
GOVERNMENT EFFORTS IN DISRUPTING FINANCIAL CRIME
ACHIEVEMENT OF THE AGENCIES SO FAR
EFCC investigated & successfully prosecuted some persons including an Inspector General of Police, a State Governor and chieftain of the ruling party/retired General as well as a fraudster who defrauded his victims to the tune of $242 million
On 18th July 2014, ICPC arrested a Visa Fraudster, Mr. Christian Pius outside the premises of the Indian High Commission in
Abuja with thirty nine (39) passports and various incriminating official documents.
DSS successfully investigated and arrested a gang of fraudsters who specialized on stealing credit cards
details of victims & effecting illegal fund transfer, fund withdrawals, online and POS purchases.
It is currently investigating a complain of a bank customer who received a fraudulent email
informing him of a deposit of Nine million, three hundred and forty five thousand Naira (N9,345,000) in his account. Also currently investigating the case of Internet Fraud involving a fake/cloned Indian High Commission website (https//india-visa.com/Saveform.php), where unsuspecting visa applicants are asked to make online payment.
Target CyberCrimeDrugs
Name: Clifford OKEMMUOAlias: Igwe, DonOrsino
Email Address1: [email protected] Address2:[email protected]
Email Address3: [email protected] Address4: [email protected]
Ymessenger Alias: [email protected]:
Location: IN CUSTODYName: Paschal
Alias: Paskal, ChibondaLocation: Nigeria
Name: ?Alias: High Chief, HC
Email Address1: [email protected] Alias: lord_chris4us
Phone1: 08033306347Location: Nigeria
Name: Peter “OKAFOR”Alias: P, Offor
Email Address1: [email protected] Alias: Peter Mcdon
Phone1:Location: IN CUSTODY - MALAYSIA
Name: OKENWALocation: IN CUSTODY - MALAYSIA
Name: ChikaAlias: P’s Chairman
Phone1 (Nig):08121885450Location: NIGERIA/MALAYSIA
Name: IsdorePhone1 (Nig):08067334516
Location: NIGERIA/MALAYSIA
Name: OrdorPhone1:0060166167648Phone2:0060146656276
Location: MALAYSIA
Name: KcPhone1:008613560248792
Location: MALAYSIA
Name: Tanya Marina NKRUMAH
Alias: T, Tanya OFORMATAYmessenger Alias: Peter Mcdon
Location: MALAYSIA
Name: ?Alias: Dray
Email Address1: [email protected] Alias: valgalaxy1
Phone1: 07032950002Location: Nigeria
Name: Chukwuka Ifeanyi OKEMMUOAlias: Chuks
Email Address1: [email protected] Alias: Chuks Okammuo
Account: EcoBank 4662001073Location: Nigeria
Name: ?Alias: Top
Phone1: 08061387866Location: Nigeria
Name: ?Alias: baroda
Email Address1: [email protected] Address2:[email protected]
Ymessenger Alias1: markmore22Ymessenger Alias2: [email protected]
Location: Nigeria
Name: ?Alias: Ali, Ali Musa,
Email Address1: [email protected] Alias: kelly221120003
Phone1: 07030959075Location: Nigeria
Name: ?Alias: Uzor
Email Address1: [email protected] Alias: Uzochukwu Chima
Phone1: +60163784829Location: Malaysia/Nigeria
Name: ?Alias: ?
Email Address1: [email protected] Alias: sonita_thompson
Phone1: ?Location: Nigeria
CONCLUSION
Due to the tremendous interconnectedness and interdependency among computer systems on the Internet, the security of each system depends on the security of all other systems on the network. To address internet fraud, therefore, it is recommended that relevant stakeholders in all countries of the world must continue to work together.
This is pertinent because no individual, no organisation, indeed no nation, however powerful, can alone successfully fight and win the war against cybercrime.
THANK YOU
REFERENCES
- Peel, Michael. "NIGERIA-RELATED FINANCIAL CRIME AND ITS LINKS WITH BRITAIN." (2006).
- Owolabi, Mr EA. "Corruption and Financial Crimes in Nigeria: Genesis, Trend and Consequences." Transparency, a publication of the Central Bank of Nigeria 1 (2007).
Email Sample: http://www.hoax-slayer.com/peter-attah-scam.shtml
Akpan, Nseabasi S. "Kidnapping in Nigeria’s Niger Delta: An Exploratory Study." Journal of Social Science 24.1 (2010): 33-42.
EFCC NEWS: available on http://efccnigeria.org/efcc/index.php/news/831-efcc-secures-773-convictions-in-11-years-chairman
Azubuike Amaraegbu, Declan (2008) Anti-corruption in Africa: the cases of Nigeria and Ghana, Durham theses, Durham University.
Available at Durham E-Theses Online: http://etheses.dur.ac.uk/2517/
National Cybersecurity Strategy – Publication of the Office of National Security Adviser, Nigeria.
Daily Trust Newspaper of August, 18th, 2014.
