Cyber Fraud, AI Misuse Threaten Institutional Security, IIA Warns
Omolabake Fasogbon The Institute of Internal Auditors Nigeria (IIA Nigeria) has raised the alarm over growing threat from cybercrimes and financial fraud, Artificial Intelligent- driven vulnerability. IIA warned that Nigerian
The Institute of Internal Auditors Nigeria (IIA Nigeria) has highlighted the growing risks posed by cybercrime, financial fraud, and the misuse of artificial intelligence (AI). At the IIA Nigeria 2026 Conference, the Chief Executive Officer, Mr. Don Umeha, emphasized that Nigerian organizations are vulnerable to digital attacks and manipulation, which threaten institutional funds, sensitive data, and critical business decisions.
The transition to technology-driven operations has brought productivity gains, but has also created new vulnerabilities through weak passwords, intercepted transactions, and manipulated records. Umeha stressed the importance of stronger controls and earlier detection of risks in an increasingly digital economy. He cautioned that a single weakness in a digital system could lead to significant financial losses and disrupt wider organizational operations.
The rapid advancement of AI has added a new dimension to the risk landscape, particularly when the technology is adopted without proper controls and responsible use. Umeha urged organizations to proactively identify vulnerabilities, prevent breaches, and contain emerging threats before they escalate, rather than merely reacting to losses.
He emphasized that technological progress should be matched by measures to contain the risks associated with digital transformation. Internal auditing should move beyond examining completed transactions and historical failures to detecting weaknesses before they result in damage. Auditors must scrutinize organizational policies, transaction patterns, and operational processes to identify vulnerabilities and introduce preventive controls.
Umeha also called for adequate regulation of AI, arguing that clear rules and appropriate penalties are necessary to deter practices that cause financial losses or violate ethical standards. The current Board Chair of the IIA Nigeria, Ibukun Beecroft, noted that internal auditors must assume a more strategic role within organizations, addressing challenges such as AI, cybersecurity, ESG concerns, digital transformation, and global volatility.
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