CBN: Electronic fraud is on the rise

Dipo Fatokun, director of banking and payment system, at the Central Bank of Nigeria, says fraud carried out through automated teller machines (ATM) and mobile banking is on the increase.

Speaking on Thursday at the unveiling of the 2017 Nigerian Electronic Fraud Forum annual report in Lagos, he said the value of electronic banking fraud cases between 2015 and 2017 at N5.571 billion.

“It is sad to note that there has been a little increase in electronic fraud, especially in recent times. It has, therefore, become necessary to review and strengthen the existing rules and enact new regulations to steer the problem,” the CBN official said.

Data made available by the NeFF showed that the value of fraud carried out over the counter was N732.85 million in 2015 and has dropped to N259.022 by the end of 2017.

However, fraud carried out through ATM channels rose from N355.89 million in 2015 to N497.643 million in 2017.

Also, mobile payment fraud rose to N347.645 million in 2017 from N248.144 million in 2015.

“Many of you present would agree on the need for a framework on for USSD as a channel for electronic payment transaction and that was why the CBN early this year issued a framework to that effect because we noticed that USSD channel was primarily responsible for the upspring in electronic fraud in recent times.

“That framework should have been implanted from the first day of this month but we shifted the implementation date to October 1st because certain requirement on that framework could not be put in place so it is better done completely.

“We remained committed as a forum in ensuring that the Nigerian payment system is not only easy to use but also reliable and trustworthy.”