Electronic Fraud in Nigeria: CBN Steps Up Move to Curb Menace
For Nigeria to catch up with global trends in e-payment development and further ensure efficiency in the system as well as customer satisfaction, the Nigerian Financial sector has shown a steady adoption of the e-payment channels. The ePayment ecosystem, as well as all the other players in the financial sector, has been making concerted efforts in ensuring that the financial sector is moving in the desired direction.
However, the adoption of e-payment platforms as a preferred channel of payment increases the incidence of electronic fraud. This heightened incidence of fraud therefore brought to the fore the need for the creation of a body (named “the Nigeria Electronic Fraud Forum”, “NeFF” which consists of all relevant stakeholders to actively and proactively react to this challenge to safeguard integrity of the e-payment channels.
In recent times “the Nigeria Electronic Fraud Forum”, “NeFF” has intensified its efforts to create more awareness as Nigerian banks reportedly lost N2.19 billion to fraudsters through electronic platforms in 2016. With mobile money transaction worth about five billion annually, The Director Banking and Payments System of The Central Bank of Nigeria Dipo Fatokun says the regulator is doing the needful to put necessary controls in place to avoid fraud in the e-payment space.
“We realize the rapidly increasing rate of mobile transactions which has become astronomical especially with the benefit of mobile convergence, today, a growing number of Nigerians use their phones through USSD and other means which makes them susceptible to fraudulent elements. We have set up special units to help address complaints and customer challenges’’.
According to figures a breakdown of the actual amount lost in the year under review shows that across the counter transactions with a total value of N511.07milllion accounted for the highest losses.
This was followed by Automated Teller Machine, ATM, transactions with N464.5 million, Internet banking N320.66 million, Point of- Sale, POS, transactions, N243.32 million, and mobile banking transactions, N235.17 million among others.
Dipo Fatokun however adds that the challenges faced are bee