NIGERIA-ELECTRONIC FRAUD Nigeria takes steps to curb electronic banking fraud in the country

Record ID: 145854

  • Title: NIGERIA-ELECTRONIC FRAUD Nigeria takes steps to curb electronic banking fraud in the country
  • Date: 30th July 2015
  • Summary: LAGOS, NIGERIA (FILE) (REUTERS) VARIOUS OF UBA BANKING HALL WITH CUSTOMERS STANDING ACROSS THE COUNTER/BANK TELLER STAFF SEATED BEHIND THE COUNTER FIVE HUNDRED NAIRA NOTES AND ONE THOUSAND NAIRA NOTES BEING COUNTED WITH THE CASH COUNTING MACHINE
  • Embargoed: 14th August 2015 13:00
  • Keywords:
  • Location: Nigeria
  • Country: Nigeria
  • Topics: General
  • Reuters ID: LVA3RR5MGX51HRH4FCRRTR2MM7W9
  • Aspect Ratio: 16:9
  • Story Text: Nigeria has a chequered reputation when it comes to fraud.
    Generically named after a section in the penal code, online scams such as the "419" e-mails, which promise untold wealth originated from Nigeria and are amongst some of the most notorious in the world.
    Electronic fraud involving ATMs and identity theft are also on the rise in Nigeria, as more people use e-commerce and shop online.
    According to Nigeria's Inter-Bank Settlements Systems, it is estimated the country's banks lost 159 billion naira (800 million U.S. dollars) to electronic fraud last year.
    "I was with my ATM card at home and I got alert that I made some cash withdrawals, and I didn't do that. The next day I rushed to the bank and lodged a complaint, and I was made to know that somebody made use of the data on my ATM card, or something, to do online purchase," said one ATM fraud victim, Ekene.
    To curb banking losses and mitigate the negative international reputation, Nigeria is seeking to address the issue with new measures.
    Amongst the strategies in place to fight the problem is the discontinuation of ATM cards that use the magnetic strip technology, which is said to be easier to clone.
    New ATM cards using chip and pin technology have been introduced, and are considered safer, as customers' details are encrypted and more difficult to obtain illegally.
    Chuma Ezirim, General Manager of the electronic-business department of First Bank of Nigeria (FBN) says the banking industry is developing more innovative ways to deal with cyber-crime and breaches in cyber security, as they relate to banking operations and e-payment systems.
    "We look at their profile and issue the right type of card. For example, in Nigeria, we have cards that even if you are able to harvest customers' information, it might be difficult for you to use those details to do anything. We also make sure that for those very vulnerable channels, like the web, we demand for second level authentication so even if you are able to get my card details either through phishing or through scheming you won't be able to use my details, except if you have a second level authentication factor," Ezirim added.
    The Chairman of Nigeria Electronic Fraud Forum, Dipo Fatokun, says the government has also increased cooperation between security agencies, both in and outside Nigeria, which they say will go a long way in controlling fraud.
    "Fraudsters, especially on the electronic platform, could be said to be a global network. They operate everywhere and they have a very strong syndicate, so for you to combat the menace of these fraudsters, you also have to operate internationally and that is why our central bank co-operates with other organizations through the law enforcement agencies in Nigeria," said Dipo Fatokun, Chairman of Nigeria's E-fraud forum.
    As electronic modes of payment become more popular in Nigeria, many in the West African country hope that more public awareness campaigns will be conducted to educate people on the dangers of cyber-crime and electronic fraud.
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