Nigeria: CBN strengthens e-banking security

The Central bank has implemented a two-factor authentification mechanism for internet banking.

The Central Bank of Nigeria (CBN) has strengthened its security arsenal against bank fraud with the implementation a two-factor authentication mechanism for internet banking.

It said that the increased use of automation in most banking payment processes had further escalated insider abuse in banks with weak authentication procedures.

In a circular, it revealed that the new system - designed to fight identity theft and abuse of authorisation - is a "maker/checker" control structure for all payment platforms, including account and database system maintenance
on core banking systems.

Deposit Money Banks (DMBs) should implement the two-factor authentication at login points for applications driving transfers, withdrawal, deposit, standing order, account maintenance and system maintenance processes.

DMBs are expected to comply by December 31, 2015.