ABSTRACT
This paper aims to analyze cybercrime and its implications on economic development of Nigeria (A case study of EFCC, Abuja)
The problem of cybercrime victims is made worst by the seeming inability of law enforcement agents to effectively prosecute offenders. Clearly, law enforcement has not been able to keep up with technological advances to prevent cybercrime.
The rising spate of cybercrime globally and its attendant negative consequences has continued to call for immediate actions. As technology advances, novel methods are used to perpetrate cyber related crimes. Nigeria is not immune to these attacks, even though statistics show a decline in cybercrime losses in the country in recent times. That could be associated with the achievements recorded by fraud-prevention agencies such as the EFCC and other law enforcement agencies and provision of a legal framework for fighting cybercrime through the enactment of Nigerian Cybercrime Act 2015. Nevertheless, it is expected that the cost of cybercrime may continue to increase as the convergence of IT and finance (FINTECH) becomes obvious globally and with the rise of crypto currency and the anonymity of transactions. There is therefore the need to take proactive steps to curb the menace. Cybercrime poses a great risk to the economy, hence the need to institute an effective risk management system and enhancement of the capacity to carry out forensic investigation to tackle it. Also, collaborative efforts of governments, corporate entities and the citizenry could play a vital role in checking cybercrimes. Cyberspace is a challenging environment that is fast and continuously evolving. Hence, the challenge is for those charged with the responsibility of security in various quarters to be abreast of developments in the cyber world. The economic vitality and national security largely depend on a stable, safe and resilient cyberspace.
Contents
CHAPTER ONE. 2
INTRODUCTION.. 2
BACKGROUND OF THE STUDY.. 2
1.2 Problem of the study. 5
Objectives of the study. 5
1.4 Research questions. 6
1.5 Research hypothesis. 6
1.6 Significance of the study. 6
1.7 SCOPE OF THE RESEARCH.. 6
1.8 Limitations of the study. 7
CHAPTER TWO.. 7
LITERATURE REVIEW... 7
2.1 INTRODUCTION.. 7
2.2 Conceptual framework. 9
2.2.1 The concept of cybercrime. 9
2.2.2 Categories of cybercrime. 10
2.2.3 Causes of cybercrime. 10
2.2.4 Effects of Cybercrime. 11
2.3 Theoretical framework. 12
2.3.1 The nature and dynamics of cybercrime in Nigeria. 13
2.4 CYBER CRIME AND GLOBAL ECONOMIC GROWTH.. 15
2.4.1 Cyber-crime and challenges of economic development in Nigeria. 17
2.4.2 The Economic Cost of Cybercrimes on Nigeria Economy. 19
2.5 The Way Forward. 23
CHAPTER THREE. 25
Methodology. 25
3.1 Research Design. 25
3.2 The Study Area. 25
3.3 Population of the Study. 25
3.4 Sample Size and Sampling Techniques. 25
3.5 Sources of Data Collection. 26
3.6 Instrument for Data Collection. 26
3.7 Validity of Research Instrument 26
3.8 Reliability of the Instrument 26
3.9 Administration of the Instrument 27
3.10 Methods of Data Analysis. 27
References. 27
CHAPTER FOUR.. 28
DATA ANALYSIS AND INTERPRETATION.. 28
4.1 Preamble. 28
4.2 Demographic Characteristics of Respondents. 28
TABLES BASED ON RESEARCH QUESTIONS. 29
4.3 Summary of Findings. 37
CHAPTER FIVE. 38
SUMMARY, CONCLUSION AND RECOMMENDATIONS. 38
5.1 Preamble. 38
5.2 Summary. 38
Conclusion. 39
5.4 Recommendations. 40
References. 41
Appendix 1. 45
CHAPTER ONE
INTRODUCTION
BACKGROUND OF THE STUDY
Scholars and commentators have argued that full-scale organized cyber-crime is fast emerging (Lusthans, 2013). "Systems that people rely upon, from bank to air defense radar, are accessible from cyberspace and can be quickly taken over and knocked out without first defeating a country's traditional defenses" (Clarke & Knake, 2010, p. 31). The growth of information technology and computer connectivity creates space for criminals to exploit security vulnerabilities in the cyber space (Broadhurst, 2006; Kigerl, 2012). Unfortunately, several functionalities of the modern day web browsers are not vulnerability-proof (Agbefu, Hori & Sakurai, 2013), thus exposing the average internet user to cyber crime victimization. With mobile telephony access made pretty easier over the past half a decade in Nigeria through the offering of internet services by virtually all Global System for Mobile Communication (GSM) service providers in Nigeria, the internet has pervaded the lives of many adult Nigerians.
A major impact of globalization in our society today is that we all have come to rely on the sheer size technological power and fast speed of the internet to seek out immeasurable volumes of information to explore the unknown to communicate with virtually anyone, anywhere and at any time across the globe. According to the Internet World Statistics report, as at 2000 to 2010, the internet has expanded at an average rate of 444.8% on a global level, and currently an estimated 1.96 billion people are on the internet. In contemporary Nigeria, most individuals possess mobile phones with internet access and are registered on social media platforms such as Facebook, twitter, watsapp, yahoo mail, Google mail and so on. Sesan, Soremi and Oluwafemi (2013) posits that at the turn of the 21st century due to the advent of mobile telephones, Nigerian Internet penetration levels took a running jump from less than 5% in 2002 – 2003, to over 30% by the end of 2012 with the growth poised to continually accelerate. These internet based platforms have provided an array of opportunities for individuals to communicate and network with people of diverse cultures all over the world; it has aided local business to grow by providing regional and international markets and it is shrinking the world into one small community (Agba 2002). However, irrespective of these gains associated with the internet revolution, it comes with it several ills especially with regards to cybercrime. Accordingly, Shehu (2014) posits that the convergence of computing and communications, and the rapid growth of digital technology have brought immense benefits to society, but these benefits also come with greater risks both nationally and internationally. Today, many traditional crimes are now being aided or abetted through the use of computers and networks, and wrongdoing previously never imagined has surfaced because of the incredible capacities of the information system. Folashade and Abimbola (2013) argued that the information technology revolution associated with the internet has brought about two edge functions: that is on one hand, it has contributed positive values to the world; while on the other hand, it has produced so many maladies that threaten the order of the society and also producing a new wave of crime to the world. Similarly, Vladimir (2005) and Olumoye (2013) posits that the internet which is a global network uniting millions of computers located in different countries and opens broad opportunities to obtain and exchange information is now been used for criminal purposes for economic gains. Cybercrime is a global phenomenon perpetrated by syndicates with regional and international networks. In buttressing this, Herselman et al (2005) and Gordon (2002) averred that having no borders or physical boundaries, and also not been subject to any form of importation, customs or forex constraints and due to lack of rules and codes of a central authority governing it (Guillane, 2009) cybercrime can be perpetrated by any one from anywhere in the world.According to crimeresearch.org as early as 2003 the United States was already leading the world in percentage of cyber-attacks at 35.4 percent, followed by South Korea at 12.8 percent (Hassan, Lass and Makinde, 2012). According to Frank and Asirifi (2015), a similar study by Norton revealed a staggering 65% of internet users globally, and 73% of internet users in the U.S.A as victims of cybercrime. As the most victimized nations of cybercrime, U.S.A ranks third, after China (83%) and Brazil and India (76%). It is therefore not surprising that Nigeria with few internet crime legislation (Ibikunle 2005) and limited cyber protection technology records high prevalence of cybercrimes. Cybercrime has severe impacts on the society, ranging from its ability to aid corruption, money laundering, military espionage, and terrorism and on the overall, undermining technological and economic development of any country. In addressing the impacts of cybercrime, Kamini (2011) argues that a nation with high incidence of crime cannot grow or develop; hence cybercrime leaves negative economic consequences. In Nigeria, such consequences are manifest in all spheres of the nation‟s economic life and due to the stigma of corruption associated with the country, foreign investors are taking steps geared at blocking e-mails originating from the country and financial instruments are accepted with extreme caution. Information flow from Nigeria are been characterized as questionable because of the criminal elements that make it unreliable, inaccurate and untrustworthy (Iwarimie-Jaja, 2010). This has more severe implications on the technological and economic development of the country when compared to conventional crimes and as highlighted by Folashade and Abimbola (2013), the contribution of the internet to the development of the Nigeria has been marred by the evolution of new waves of cybercrimes. In the light of the foregoing, this paper examines cybercrime and its implications on economic development of Nigeria (A case study of EFCC, Abuja).
1.2 Problem of the study
The problem of cybercrime victims is made worst by the seeming inability of law enforcement agents to effectively prosecute offenders. Clearly, law enforcement has not been able to keep up with technological advances to prevent cybercrime (Jaishankar, Pang & Hyde, 2008; Choi, 2006). Anti-hacking laws, because of their traditional approaches to crime containment, have been ineffective (Sharma, 2007). Various studies have explored the nature and extent of cybercrime and victimization (Bossier & Holt, 2010; Choi, 2008; Finn, 2004; Holt & Bossier, 2009; Haider & Jaishankar, 2010; Marcum, 2008; Ngo & Paternoster, 2011). Also there have been quite a number of Nigerian studies on cybercrime. One of the earlier studies by Longe and Chiemeke (2008) examined how access to the internet boosts criminality. Tade and Aliyu (2011) and Ojedokun and Eraye (2012), looked at the Nigerian university undergraduates involvement in internet crime and the benefits they believe that come from it. Other studies like Adeniran (2008) and' Aransiola and Asindemade (2011), also focus on cybercrime in Nigeria. Adeniran (2008) argues that the advent of the internet technology in Nigeria has led to the modernization of fraud among the youth in that cyber fraud seems to have become accepted as a means of living for the Nigerian youth. He argued that this is more so for those who are of college age (Adeniran, 2011).However, very few studies have been done on cybercrime victimization in Nigeria. This is the gap this study hopes to fill. The present study investigates Cybercrime and its implications on economic development of Nigeria (A case study of EFCC, Abuja).
Objectives of the study
Nigeria as part of the nations classified under developing countries has benefited immensely from Foreign Direct Investments since the middle 1990's. It goes without saying that the country's economy in recent times have had advancements in Information and Communications Technology which can be seen in every facet of its industries. This growth has also attracted innumerable crimes which has directly and otherwise affected the Nigerian economy, especially in the form of Cybercrime. Taking an in- depth analysis of the said subject matter, it is apt and of utmost interest to pose some questions that will enable us shed additional light for posterity sake.
The aim of the study is to investigate cybercrime and its implications on economic development of Nigeria (A case study of EFCC, Abuja).
Following objectives include;
1. To comprehend how cybercrime is affecting and to what extent it has affected the Nigerian economy.
2. To analyse the impacts cybercrime has on the Nigerian economy.
3. To analyze the correlation between cybercrime in Nigeria and Nigerian economy.
1.4 Research questions
1. How is cybercrime affecting and to what extent has it affected the Nigerian economy?
2. What are the impacts cybercrime has on the Nigerian economy?
3. What is the correlation between cybercrime in Nigeria and Nigerian economy?
1.5 Research hypothesis
Ho1: cybercrime has a significant impact on the Nigerian economy
Ho2: There is a significant correlation between cybercrime in Nigeria and Nigerian economy
1.6 Significance of the study
The study will be of immense benefit to a number of individual, firms and government.
- To individual, the study will serve as a research literature to student who may decide to research more on the topic
- The study shall attract the attention of government and relevant agencies on the need to provide maximum security to reduce and prevent cybercrime.
1.7 SCOPE OF THE RESEARCH
The scope of this report was not restricted to cybercrime and its implications on economic development of Nigeria (A case study of EFCC, Abuja). To present a holistic view of the topic, the types of cybercrime, cyber terrorism and the Nigeria economy and how to combat cybercrimes are included in the report. The research was carried out in Nigeria EFCC, Abuja.
1.8 Limitations of the study
The Major Limitations of the study are:
Cost Limitation: There was a cost limitation. This means that we could not offer any gift or monetary incentives for the respondents to answer the questionnaire. This might have resulted in certain prospective respondents choosing not to respond to the questionnaire. This might not have created a motivation among respondents not to take a chance to give opinions.
Time Limitation: There are two types of time limitation faced during the study. The study was done for a period of election. Hence the results would reflect the impact of the time constraint. The insights of the respondents were observed during the period of study. A more extensive study conducted over a larger time period or during a special period of time like when there were higher numbers of issues.
