Cybersecurity: CBN warns banks, fintechs against third-party technology risks

…says one incident could disrupt entire financial system

Central Bank of Nigeria (CBN) has cautioned banks, fintechs and other financial institutions against the growing cybersecurity and third-party technology risks associated with the increasing interconnectivity of the financial system.

The apex bank warned that a vulnerability in one institution or technology provider could trigger wider disruptions across the financial ecosystem, urging financial institutions to strengthen safeguards beyond their individual organisations.

The CBN said the growing reliance on fintechs, payment service providers, cloud operators and other technology vendors had created additional channels through which cyber incidents could spread across the financial system.

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The Director, Payments System Supervision Department of the CBN and Chairperson of the Nigeria Electronic Fraud Forum, Dr Rakiya Opemi Yusuf, gave the warning on Wednesday during a panel session at the 19th Annual Banking and Finance Conference of the Chartered Institute of Bankers of Nigeria in Abuja.

Speaking on the theme, “Navigating Cyber and Systemic Risks in the AI-Driven Future of Banking: Implications for Financial Stability and Business Resilience,” Yusuf highlighted the implications of artificial intelligence, cyber threats and digital interconnectivity for Nigeria’s financial stability.

She warned that a weakness in one bank, fintech, payment service provider or technology vendor could spread to other interconnected institutions, creating what she described as a “one-fire” effect…