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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 organisations were in danger as institutional funds, sensitive data and critical business decisions are increasingly exposed to digital attacks and manipulation by the development.

Chief Executive Officer,  IIA Nigeria, Mr. Don Umeha, who gave the warning at the Institute of Internal Auditors Nigeria 2026 Conference, themed “Future-Proofing Assurance in Nigeria: Confronting Cybersecurity Threats, AI Complexity and Global Volatility,”  and other internal audit leaders at the conference, called for stronger controls and earlier detection of risks threatening organisations in an increasingly digital economy.

A statement quoted him to have said the transition from manual to technology-driven operations had delivered gains in productivity, accuracy and speed, but had also opened new vulnerabilities through weak passwords, intercepted transactions, manipulated records and other security gaps.

According to him, a single weakness in a digital system could trigger financial losses and undermine wider organisational operations, making it essential for institutions to identify vulnerabilities before they are exploited.

Umeha said the rapid expansion of artificial intelligence was adding another dimension to the risk landscape, particularly where the technology was adopted without adequate controls and responsible use. He urged organisations to move beyond reacting to losses after they occur and develop stronger systems for detecting vulnerabilities, preventing breaches and containing emerging threats before they escalate.

The IIA Nigeria boss stressed that technological progress should not be rejected, but its benefits must be matched by measures capable of containing the risks that accompany digital transformation.

Umeha further said internal auditing must move beyond examining completed transactions and documenting historical failures to identifying weaknesses before they result in damage.

Auditors, he explained, should scrutinise organisational policies, transaction patterns and operational processes to detect vulnerabilities and introduce preventive controls before misconduct or system failures occur; warning that auditors who continue to rely exclusively on manual procedures while AI-driven systems reshape the workplace risk losing their effectiveness and relevance.

The profession, he said, must develop the skills and foresight required to understand emerging threats and prepare organisations for changing operational realities.

Umeha also called for adequate regulation of AI, arguing that clear rules and appropriate penalties were necessary to deter practices that cause financial losses or violate ethical standards. He urged young people to channel AI towards productive and innovative purposes rather than fraud or other unethical activities, noting that the technology could either support personal development or facilitate harmful conduct, depending on how it was used.

On her part, Ibukun Beecroft, the current Board Chair of the Institute of Internal Auditors Nigeria, said the changing risk environment required internal auditors to assume a more strategic role within organisations.

Beecroft identified AI, cybersecurity, environmental, social and governance (ESG) concerns, digital transformation and global volatility as emerging challenges demanding greater professional preparedness.