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Cybersecurity In U.S. And Nigeria Banking And Financial Institutions: Review And Assessing Risks And Economic Impacts

Author

Listed:
  • Chibuike Daraojimba

    (University of Pretoria)

  • Okeoma Onunka

    (Nigerian Institute of Leather and Science Technology Zaria Kaduna Nigeria)

  • Ayoola Maxwell Alabi

    (Independent Researcher, UK)

  • Chiedozie Marius Okafor

    (United States Mission, Nigeria)

  • Anwuli Nkemchor Obiki-Osafiele

    (Zenith Pensions Custodian Ltd)

  • Tochukwu Onunka

    (Abia State Oil Producing Area Development Commission)

Abstract

The digital transformation of the global financial landscape has brought forth unprecedented opportunities and challenges, particularly in the realm of cybersecurity. This paper delves into the intricate dynamics of cybersecurity within the banking sectors of two pivotal players in the global economy: the United States (U.S.) and Nigeria. Through a comprehensive exploration, the study underscores the profound significance of robust cybersecurity measures in safeguarding the integrity and security of financial institutions in today’s interconnected digital age. The research begins with a deep dive into the background of cybersecurity in financial institutions, revealing the escalating importance of digital defenses, especially in an era marked by frequent and sophisticated cyber threats. The interconnectedness of today’s financial systems and the rise of digital transactions amplifies cyber breaches’ potential risks and economic impacts. A comparative study of the U.S. and Nigerian banking systems showcases the unique challenges and solutions each country’s financial institutions face. While the U.S. grapples with issues like money laundering and the need for increased competition, Nigeria’s banking landscape is influenced by factors such as the potential of Islamic banking and the challenges of financial inclusion. Emerging technologies, particularly artificial intelligence, are highlighted as cybersecurity game-changers. Their ability to predict, detect, and respond to threats in real-time offers a promising avenue for enhancing digital defenses. However, the paper also cautions that with technological advancements come new challenges, as adversaries too harness these technologies for more sophisticated attacks. The paper concludes with a forward-looking perspective, emphasizing the need for continuous investment in research, collaboration, education, and agile policymaking. It advocates for a unified approach, where financial institutions, regulatory bodies, and cybersecurity firms work in tandem to ensure the security and trustworthiness of the financial sectors in both nations. In essence, this research provides a comprehensive overview of the current state of cybersecurity in the banking sectors of the U.S. and Nigeria, offering insights and recommendations for fortifying defenses and ensuring financial stability in the digital age.

Suggested Citation

  • Chibuike Daraojimba & Okeoma Onunka & Ayoola Maxwell Alabi & Chiedozie Marius Okafor & Anwuli Nkemchor Obiki-Osafiele & Tochukwu Onunka, 2023. "Cybersecurity In U.S. And Nigeria Banking And Financial Institutions: Review And Assessing Risks And Economic Impacts," Acta Informatica Malaysia (AIM), Zibeline International Publishing, vol. 7(1), pages 54-62, September.
    • Handle: RePEc:zib:zbnaim:v:7:y:2023:i:1:p:54-62
    DOI: 10.26480/aim.01.2023.54.62
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    References listed on IDEAS

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    1. Emanuel Kopp & Lincoln Kaffenberger & Christopher Wilson, 2017. "Cyber Risk, Market Failures, and Financial Stability," IMF Working Papers 2017/185, International Monetary Fund.
    2. James Shires, 2018. "Enacting Expertise: Ritual and Risk in Cybersecurity," Politics and Governance, Cogitatio Press, vol. 6(2), pages 31-40.
    Full references (including those not matched with items on IDEAS)

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