CBN Floats Fraud Prevention C’ttee For Cash-less Policy

culled from: http://leadership.ng

The Central Bank of Nigeria (CBN) has established an Automated Teller Machine (ATM) Fraud Prevention Committee to address risks associated with the use of alternative e-payment channels.
 
The members of the committee include banks, the Economic and Financial Crimes Commission (EFCC), National Identity Management Commission (NIMC) and InterSwith and ValuCard. They meet monthly to make e-payment more secure for bank customers.


A statement from the Bankers’ Committee said setting up the committee has become imperative to address card frauds, especially the ones associated with the use of ATMs and Point of Sale (POS) terminals.

It noted that ATM Fraud was prevalent when magnetic strip cards were in use. All Nigerian banks have migrated their cards to chip and Personal Identification (PIN) technology, which is more secured and has drastically reduced the fraud level in the industry.

“In terms of security of platforms, it said that ATM fraud was prevalent when Nigeria was using magnetic stripe cards.

But last year, Nigeria migrated, all their cards to chip and PIN, which is more secure, and drastically reduced the fraud level. With chip and PIN, the chances of fraud are reduced provided a customer keeps his PIN secret,” the Committee said.

In terms of infrastructure, the Committee said that the apex bank was working with the Nigeria Communications Commission (NCC) and telecommunications operators to ensure there are dedicated communication links for the POS system in the country.

It added that if the PoS or mobile phone were stolen, the money for the user would be safe as the devices do not hold the money.

To make the platforms secured and reliable, the Committee said that all PoS must have a minimum of two SIMs from telecommunication operators, even as there is minimum of 24 hours battery life, and sometimes, car chargers are attached.

The Committee disclosed that the literacy required in operating the PoS was minimal as many Nigerians can use a mobile phone needed to make mobile payments. Besides, biometrics were being installed in some ATMs and POS to further check fraud in the industry.