Print
Email

Nigeria: Time to Fight e-Banking Fraud

28.04.2014

Banks are launching more security awareness campaigns and are upgrading their systems to protect customers from fraudsters and enhance the cashless policy initiatives of the Central Bank of Nigeria.

Banks are launching more security awareness campaigns and are upgrading their systems to protect customers from fraudsters and enhance the cashless policy initiatives of the Central Bank of Nigeria.

The development of e-banking allows financial institutions to reduce their costs and increase profits. It also generally enhances customers’ experiences, by providing convenient and instant access to their bank accounts. However, customers often receive scam mails asking them to “upgrade their internet banking account on our safer platform.” These emails point the customer to a website which collects their account and mobile phone details.

Banks, for instance Skye Bank, have been trying to alert their customers of these practices. These emails often use poor grammar, request personal information and are sent from a wrong email address.

The Chairman of the Committee of E-Banking Industry Heads (CeBIH), Mr Chuks Iku, also reminds users that the PIN of their transaction cards should never be disclosed to anyone. He is in particular warning against entering this PIN on any website.

In a report, SafeNet, a global leader in information security, is advising banks on ways to establish user identities and more effectively guard against unauthorised access. This includes multi-factor identification (the combined use of a password, token and/or biometric identification).

ATMs are also being upgraded from Windows XP to Windows 8 and banks are currently working towards meeting the June deadline for the installation of anti-scamming devices on their systems.