CBN's e-Naira Ranks High as New Report Details Top Sources of Fraud in Banks
- Nigeria’s Central Bank Digital Currency (CBDC), better known as the e-Naira, has been said to be one of the top sources of fraud in banks
- A recent report says that banks use the e-Naira platform, among other channels, to perpetrate fraud
- The other channels include PoS terminals, ATMs, web and mobile banking platform
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A new report has put a dent in the Central Bank of Nigeria's (CBN) claim that Africa’s first digital currency, the e-Naira is safe.
The report by the Financial Institutions Training Centre (FITC) said the e-Naira is one of the top sources of fraud among Nigerian banks.
Source: Getty Images
Report destroys CBN's claim on e-Naira
The report on Frauds and Forgeries said that fraudulent activities in Nigerian banks have risen by 209% in the third quarter of 2022.
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According to the report, fraud activities were performed using varying platforms such as ATMs, web banking, and Mobile app services, including the e-Naira and PoS terminals.
The reports also said that the amount lost through mobile apps including the e-Naira is about N1.67 billion.
Point of Sale or PoS terminals also featured prominently in the report with about N393 million in losses, BusinessDay reports
Other sources of fraud in banks
Other channels of fraud in banks include ATMs with N222 million.
In December 2022, CBN said the e-Naira has crossed over N8 billion in transactions.
The e-Naira, which was launched by the CBN in October 2021 by President Muhammadu Buhari, is Nigeria and Africa’s first and largest CBDC.
CBN’s director of Information Technology, Hajiya Rakiyat Mohammed said Nigerians who have deployed the services of the digital currency stand to gain.
However, the e-Naira is struggling to gain adoption by Nigerians after it was developed by the apex bank to lure citizens, especially the youths, away from cryptocurrencies.
The FITC report stated that PoS terminals remain some of the top sources of fraud among banks in Nigeria with about 26.19% amounting to N393 million.
There are fears that with the recent introduction of new naira notes and their scarcity, fraud perpetrated using PoS will more than double in the coming days.
Most PoS operators often report glitches leading to losses by customers who say their funds are never returned in most cases.
"We don’t know the e-Naira, we have never used it", Nigerians express ignorance about CBN’s digital currency
Recall that Legit.ng reported that the Central Central Bank of Nigeria (CBN) has been hounding Nigerians over its less-than-a-year-old digital currency, the eNaira and regaling the country with its performance.
Recently, the nation’s apex bank launched an Unstructructured Supplementary Service Data (USSD) for its CBDC for Nigerians who do have access to the internet.
For the most part, Nigerians are still largely confused about the eNaira and are asking for its purpose of existence since there are many other alternatives.
Source: Legit.ng
