FG, Others Set to Launch Feature to Detect PoS Fraud as Nigeria Lose N1.95bn
- The CBN is partnering with different associations, including AMMBAN and NEFF, to curb POS fraud
- This followed reports that Nigerian banks recorded a total of 78,584 fraud cases in one year
- According to AMMBAN, the new feature will be ready for introduction in the first quarter of 2024
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Legit.ng journalist Zainab Iwayemi has over three years of experience covering the Economy, Technology, and Capital Market.
The Central Bank of Nigeria (CBN) is collaborating with the Association of Mobile Money and Banking Agents of Nigeria (AMMBAN) and the Nigerian Electronic Fraud Forum (NEFF) to implement a new feature on Point of Sale (PoS) terminals.
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Lilian Phido, head of corporate communications at Nigeria Inter-Bank Settlement System Plc (NIBSS), told reporters that the Nigerian Electronic Fraud Forum drove the partnership.
According to a recent report by the Financial Institutions Training Centre (FITC) on "Frauds and Forgeries in Nigerian Banks," Nigerian banks recorded a staggering 78,584 fraud cases within a year, shedding light on the ugly side of a cashless society.
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Also, between the second quarter of 2022 and the second quarter of 2023, Nigeria lost N1.95 billion to POS fraud in one year
The new feature asks for KYC
According to a BusinessDay report, Phido said the feature demands certain Know Your Customer (KYC) information before completing certain transactions to detect potentially fraudulent transactions at the agents' locations.
The Nigerian Electronic Fraud Forum was established by the CBN as a result of her continued focus on the industry's need for constant innovation.
Phido said:
“This dedicated body includes key players and stakeholders who work together proactively to ensure the integrity of payment systems nationwide.”
According to a report, AMMBAN president, Fasasi Sarafadeen Atanda said the collaboration is nearing completion.
He added that priorities are being set for completing the technology and turning on particular features.
The report stated that the upcoming functionality will be widely displayed on Point of Sale (PoS) terminal agents nationwide.
AMMBAN announced that the functionality is expected to be ready for introduction in the first quarter of 2024, following a recent discussion with NIBSS.
The report also stated that a coalition of security agencies has been formed to enable the smooth tracking of fraudsters operating at agent sites.
This coalition includes the Department of State Services (DSS), AMMBAN, NIBSS, and the Nigerian police.
It added that the coalition aims to create a single identity system for more than 1.7 million financial agents registered with the AMMBAN database.
Furthermore, there are ongoing talks about possible agent certification and training; nevertheless, several stakeholders are dubious about this strategy.
PoS scams on the rise
Legit.ng earlier reported that although Point of Sale (PoS) machines brought significant convenience to financial transactions in Nigeria, numerous individuals in the country have fallen prey to fraudulent activities.
The unscrupulous actions of scammers are dissuading many Nigerians from embracing the technology for their business transactions.
From January to August 2023, for instance, Nigerian banks reportedly lost a massive N9.5 billion to electronic fraud.
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Source: Legit.ng
