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CBN, banks to step up fraudsters’ prosecution

By on March 11, 2016

The Central Bank of Nigeria and Deposit Money Banks have said effective prosecution of fraudsters will be their focus this year.

Speaking under the aegis of the Nigerian Electronic Fraud Forum, they also promised to continue to secure electronic payment platforms and protect customer information.

The Director, Banking and Payment Systems, CBN, Mr. Dipo Fatokun, who is also the Chairman of the NeFF, stated this in Lagos during the maiden general meeting of the forum.

He said, “Top on the list of the agenda is the setting up of a dedicated e-payment and card crimes unit in the Nigeria Police Force. We also have other things we want to do such as collaboration with the Economic and Financial Crimes Commission on the use of Nigerian cards abroad.

“We are in collaboration with the United States’ Federal Bureau of Investigation to combat electronic frauds. These are some of the things we intend to do this year.”

According to Fatokun, the proposed steps will help to mitigate the spate of electronic frauds in the country and boost customers’ confidence in the payment system.

The NeFF chairman used the occasion to alert stakeholders to the emerging fraud threat called ‘ransomware’.

Ransomware is a new virus used by electronic fraudsters to attack the computer system of financial institutions, individuals, businesses and public agencies.

Ransomware, according to him, is a denial of service attack where by the computer system of an organisation is held to ransom electronically by fraudsters. The fraudsters usually demand for ransom before the system is released.

Fatokun, however, said the development was not a major threat in Nigeria.

“It is not a threat in Nigeria, at least for now. But it has been reported in Ghana. And if it has happened in Ghana, it means it can happen here. But we don’t want it to happen here; that’s why we are organising this forum,” he said.

The Managing Director, Guaranty Trust Bank Plc, Mr. Segun Agbaje, who was represented by Mr. Deji Oguntonade, noted that ransomware had been in existence for over 20 years.

He, however, said financial security needed to be beefed up following the reported cases of ransomware in Ghana.

According to him, the general target of malwares includes computer servers, personal computers and mobile devices, especially Android smartphones.

An executive director at United Bank for Africa Plc, Mr. Femi Olalogo, commended the NeFF for providing safety, security and confidence to the banking community.

He said it would have been difficult for the financial services sector to make the giant strides it had made in the backing industry without the support of the Neff.

 

[Punch]