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E-fraud: CBN urges banks to punish offenders

By on August 25, 2015

The Central Bank of Nigeria says the passage of the Cybercrime Prohibition and Prevention Act has given Deposit Money Banks and other financial institutions legal backing to punish perpetrators of electronic fraud especially in the financial services industry.

The CBN therefore advised banks to rely on the provisions of the Act to punish offenders, adding that the document was vital to the fight against e-fraud.

The Director, Banking and Payment System, Mr. Dipo Fatokun, who is also the Chairman of the Nigerian Electronic Fraud Forum, stated these in Lagos at the NeFF meeting on Friday.

He described the Cybercrime Prohibition and Prevention Act as a strong force that would help the industry in combating electronic fraud.

According to him, the Friday’s NeFF meeting is meant to educate the industry on the Act.

Fatokun said, “So many things that were not criminalised in the past are now criminal offences. And if people are aware of this, it would even serve as a deterrent to those who want to be involved in activities that could send them to prison or deny them of their freedom or even make them to pay heavy fine.

“So we are gathered here to educate ourselves firstly and see ways through which we can get this information out to the public to give a warning as far as the electronic payment platform is concerned.”

He added, “We have a procedure in place. For example, if anyone is dismissed in a bank because of fraud, the name of such an individual would be sent to the banking supervision department of the CBN, where a database is maintained and such people are blacklisted.

“By being blacklisted, it means that such a person cannot work in the banking industry. So, how much does such a person want to gain to spoil his or her reputation and family name? Another thing is that the banks are collaborating to ensure that we reduce electronic fraud.”

The CBN director said the challenges facing electronic payments globally and in Nigeria were more real than imagined.

He, however, noted that the NeFF had responded to some of the challenges by making Nigeria increasingly difficult for cyber criminals.

In a bid to strengthen the industry’s relationship with the judiciary and set the tone for a planned judiciary training to strengthen their capacity on the Act, Fatokun said members of the forum would pay a courtesy visit to the Chief Justice of the Federation.

The CBN director said, “There is a strong need for the judiciary and law enforcement agencies to corporate with us, and it is in our effort to actualise our plan in that regard that this visit to the Chief Justice will be conducted.”

According to the NeFF chairman, the forum will also remodel its online presence so as to increase awareness in the battle against electronic fraud on Facebook, Twitter and other social media platforms.

He added that NeFF would soon have a robust website that would assist in the dissemination of information.

The Managing Partner, Digital Encode, an indigenous Information and Communications Technology firm, Mr. Adewale Obadare, said the newly passed Cyber Crime Act would provide a robust vehicle for “an effective and unified legal, regulatory and institutional framework for the prohibition, prevention, detection, prosecution and punishment of cybercrime and related offences in Nigeria.”

He also said that the Act “will help to ensure that due care and due diligence are followed on any issue that has to do with electronic payment transactions, and also serves as an enabler to give enough muscle in fighting against fraudsters and cyber criminals.”

 

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