The Central Bank of Nigeria (CBN), has disclosed that despite the increase in the value and volume of electronic payment transactions this year, a decline in fraud cases has also been recorded.
The Deputy Governor, Operations, CBN, Mr. Adebayo Adelabu, stated this at the Nigeria Electronic Fraud Forum (NeFF), that the value of fraud cases reduced from ₦652.8 million, as of the third quarter of 2015, to ₦406 million Naira, of the third quarter of 2017.
According to him, NeFF was created when the industry was emerging from an era of magnetic stripe challenges effectively truncated with migration to PIN and Chip technology for card issuance.
“Since this feat, the industry has consistently been inundated with other types of fraud, from Card Not Present fraud, to insider abuses and phishing scams.
“In all these, the Forum has responded not only proactively but also effectively in fashioning strategies to combadthese threats to our payment system.”
In terms of payment channels from which the frauds were perpetrated, CBN report stated that in 2014, the top three fraudulent transactions were conducted through the ATM with 491 cases; Internet banking with 287 cases; and web channels with 218 cases.
Although these channels have been the three avenues for fraud, the numbers are reducing by the year.
In 2015, there were 5,133 ATM fraud incidents; PoS, 1,853 cases; and web, 1,463 cases.
In 2016, ATM 9,522 cases; mobile, 3,832; and web channels, 2,677.
Also in 2016, Adelabu said, Nigerian Deposit Money Banks, (DMBs), lost N2.19 billion to fraudsters through electronic channels in 2016 fiscal period with 19,531 fraud cases reported by banks in 2016, as against 10,743 recorded in 2015.
The frauds were perpetrated through various payment channels in the banking sector such as Across the Counter, Automated Teller Machines, cheques and electronic-commerce platforms.
Others are Internet banking, mobile banking, Point-of-Sale (POS) and web transactions.
A breakdown of the actual amount lost showed that across the counter transactions, with a total value of ₦511.07milllion, accounted for the highest losses.
Automated Teller Machine (ATM) transactions lost to fraud was ₦464.5 million, Internet banking N320.66 million, Point of- Sale (POS) transactions ₦243.32 million, and mobile banking transactions ₦235.17 million, among others.
The NeFF Chairman, Mr. Dipo Fatokun, revealed that in 2018, efforts would be aimed at securing banking channels by raising awareness on fraud patterns and deepening its collaboration and partnership with law enforcement and telecommunication stakeholders within and outside Nigeria.
