FintechNGR Moves to Curb Fraud in Digital Banks After Nigerians Lost N51bn to Cybercriminals
- FinTech Association of Nigeria said that it is working on a new initiative to combat fraud in Nigeria
- The association said the new framework would solve the issues around regulatory concerns in the industry
- This comes on the back of a report that Nigerian banks lost N10 billion to fraud as fintech bank customers become targets
Legit.ng journalist Zainab Iwayemi has over three years of experience covering the Economy, Technology, and Capital Market.
The committee of the FinTech Association of Nigeria (FintechNGR), has disclosed it is working on an initiative to combat fraud in the industry.
The association is a self-regulatory body incorporated in Nigeria by the Corporate Affairs Commission CAC and a member of the global body Global Fintech Hubs Federation.
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It stated that this would help to respect the privacy and regulatory concerns surrounding data centralisation and reporting.
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This comes after a report that Nigerian banking customers have lost a whopping N51 billion in savings to fraud as cybercriminals are now targeting digital banks' customers.
According to the statement issued as reported by The Guardian, the action is aimed at preserving the integrity of the country's digital infrastructure, meticulously built over the past two decades.
Need to safeguard against fraud
Uzoma Dozie, the Chairman of the CEO's Committee, noted that there is a delicate balance between safeguarding against fraudulent activities and respecting the privacy and regulatory frameworks that govern the industry.
He noted that it is not a trivial challenge, and the implications of missteps are significant.
The statement highlighted that the committee is working on identifying a framework for reporting fraud and risk mitigation.
It stated that this method tackles the fundamental problem of blocking malevolent individuals without jeopardising privacy or adhering to regulations.
By January 2024, FintechNGR intends to make the complete framework and associated technological specifications available.
By supporting this initiative, numerous financial institutions, fintech firms, and other relevant parties have shown a significant commitment to strengthening the security of the banking and fintech communities.
This represents a major step in maintaining the security and credibility of Nigeria's digital financial system by creating the Fraud Prevention and Risk Management Sub-association.
Fraud Alert: Palmpay, Opay take action, announce account changes, and customers to update
Legit.ng reported that the two digital banking platforms made the changes in response to reports of loopholes exploited by fraudsters when opening accounts.
For Opay, there are changes in the identification method of securing bank accounts during the onboarding process.
According to a statement made available to Legit.ng, customers will now have to provide bank account verification to help users authenticate BVN.
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Source: Legit.ng
