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News : Nigerian Banks, e-Payment Platforms Ordered to Set Up Fraud Desks
Abuja, Nigeria, June 15, 2015 -- Following the growing fraud cases in the country in recent years, the Central Bank of Nigeria (CBN) has ordered all banks and e-payment platforms in Nigeria to set up and staff a functioning Fraud Desk before July 1, as part of efforts to combat fraudulent activities in the industry.
Nigerian banks reportedly lost a total of N199 billion (about $1bn) to electronic related fraud between 2000 and 2014, mostly due to inappropriate and reckless management of customers’ data. Between 2013 and last year, the rate of bank fraud cases rose to 80 percent from just three per cent.
In a circular to all Deposit Money Banks (DMBs), switches and payment service providers, signed by its Director, Banking and Payments Systems Department of the CBN, Mr. Dipo Fatokun, the apex bank warned that failure to comply would attract appropriate sanctions.
The CBN has already established the Nigeria Electronic Fraud Forum (NeFF) as part of its effort to combat fraudulent activities in the banking industry, particularly those associated with increased use of electronic payment systems.
Fatokun explained that the establishment of the new industry desk followed submissions to the NeFF and consultation with the deposit money banks as well as electronic payments service providers.
The new desk, Fatokun said, would set up effective mechanisms for receiving and responding promptly to fraud alerts, to help manage and reduce electronic payments fraud in the country’s banking industry.
According to the CBN, the staff of the desks must be trained on emerging fraud trends on various electronic payments channels.
The desk is to provide, among other services, support to customers on electronic fraud with a minimum of 10 dedicated phone lines, manned and available at all times, to handle calls directed from contact centre for fraud alerts and complaints.
The desk will also log on all customer fraud alerts and complaints and redirect them to the appropriate authorities in line with internally predefined path, while preparing and submitting reports regularly to the Nigeria Inter-bank Settlement System (NIBSS) on fraud information.
In addition, the desk would have the responsibility to sensitise customers on e-fraud and fraud desk services as well as manage/resolve all intra-bank issues by leveraging an enterprise fraud management system.
Posted by Veronica Silva Cusi, news correspondent
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About Central Bank of Nigeria:
The Central Bank of Nigeria was established by the CBN Act of 1958 and commenced operations on July 1, 1958.
Published: Tuesday, June 16, 2015