Proshare Logo
   Market Date: 27-01-2015   
Agriculture ARTS FINANCE All One Min News Archives Bonds Cap Mkt Sentiments Capital Market CASHLESS NIGERIA Commodities Corporate Earnings Daily & Weekly Market Updates Elections Enterpreneurship ETFs Forex Frauds & Scandals General Global Market Insurance Investors NewsBeat Islamic Finance Mergers & Aquisitions Money Market Mortgage Mutual Funds Nigeria Economy Oil Sector Opinions and Analysis Pensions People Personal Finance Politics Power Products & Services Professionals Property Public Offers Private Placements Regulators REITs Stock PICKS Taxation Telcos Travel & Tours Unlisted OTC MARKET World of Business

Circular On The Need To Combat Card Fraud

Category: Capital Market

  Read (1470)
Circular On The Need To Combat Card Fraud

August 30, 2010


Ref:    BPS/DIR/CIR/2010/GEN/01/169



Following the case in the spate of complaints by ATM card holders on fraud, it has become necessary for all Deposit Money Banks (DMBs) to put measures in place, in addition to the existing guidelines to stem this tide. Consequently, all DMBs are hereby directed to implement the following:


1.            No debit card should be issued on an account without a written request from the account holder. Henceforth, DMBs shall bear liability for any fraud perpetrated with the use of cards issued without written request from the account holder, and such card must be delivered in such a manner that the confidentiality of the information is not compromised.


2.            DMBs should set and implement mandatory daily limits for ATM cash withdrawals. All other related transactions, including POS and Web purchases should be subject to stringent limits as agreed and documented between the DMBs and their customers. It is the responsibility of the DMBs to ensure that the agreements are documented and that such limits are embedded within the card so as to automatically initiate a trigger when limits are exceeded.


3.            The use of second level authentication for internet transactions is now mandatory for all payment cards. It is the responsibility of the Issuer that transactions emanating from its web merchants are properly scrutinized and operations are permitted only after 2nd level verification.


4.            DMBs must send SMS alerts to the telephones/email addresses of cardholders whenever there is a debit transaction via payment card. Evidence of the dispatch of such messages would be required in cases of non-receipt of the alerts by accountholders as a result of telephone network failures.


5.            Cardholders should be provided with a facility to block their accounts immediately from their mobile phones whenever the SMS alert is received in respect of suspicious transactions so as to prevent further fraudulent transactions from being perpetrated.


6.            All card issuing banks should deploy fraud monitoring tools that have the capability to monitor the normal spending trends of a cardholder as well as automatically stop abnormal transactions that are perceived to be fraudulent. The block shall only be lifted by express instruction by the Card holder.


7.        The use of temporary staff, i.e., Students on industrial attachment/vacation job, NYSC members and contact staff for card management and issuance/ distribution of PIN mailers should be stopped forthwith.

Appropriate sanctions will be imposed for non-compliance.



Tags: , 

Comment With Your Facebook or Yahoo! ID

Latest news

News on Capital Market

About Us

Who We Are
Our Team & Partners
Corporate Governance
Advertise with Us
Subscribe / Unsubscribe
Site Map
News Feed - RSS
Contact Us
Volunteer Program
Message from CEO

News & Features
The Analyst / Market Data
Investor Relations Portal
The Regulator
Economy & Politics
Training Portal
Events Calendar
NewsStands - Online Reputation

Products and Services

Research & Market Intelligence
Analyst Services
Offers & Rights Support Service
Investor Relations Services
Alert & Subscription Services
Share Support Services
Proshare Consult
Event & Seminar Coverage
Market Directory
File a Complaint
News & Analysis

News from TheANALYST
Video News from WebTV
Money Market Updates
Opinions & Analysis
Nigerian Economy
Market Data
The Regulator
Discussion Forum

Subscriber Agreement
Privacy Policy
Data Policy
Copyright Policy
Comments in Site
Advertising Code
Conflict of Interest
Content Partnership
3rd Parties

Online Trading and Execution
Legal Support Services
Web/Technology Services
File a Complaint

CBN Governor 2014