Friday, February 05, 2016 09:04 AM / FBNQuest Research
Electronic banking has increasingly become a core tool of banking business strategy and a strong catalyst for economic development. At the same time, the adoption of e-payment channels increases the incidence of electronic fraud.
Considering the surge in e-commerce and its potential to drive increased investment in Nigeria’s economy, we welcome the recent release of an e-fraud report by the Nigeria Electronic Fraud Forum (NeFF) of the CBN.
This new series is to be released on an annual basis. Its maiden report begins with 2014 and captures views from over ten DMBs on e-payment channels. One common thread was similar trends in phishing attacks on banks.
Due to spikes in phishing, particularly in the last quarter of each year since 2012, most banks have invested in anti-phishing solutions to protect customers.
According to the report, most organisations leverage on fraud prevention as a competitive advantage. They are naturally unwilling to share their fraud management strategies with competitors.
Data from the Nigeria Inter-Bank Settlement System (NIBSS) show that the greatest number of fraudulent transactions in 2014 took place on ATMs.
Banks should be able to play significant roles in revenue generation for the FGN by collaborating with ministries, departments and agencies (MDAs) on deploying electronic-based revenue collection platforms. This could complement the Treasury Single Account (TSA) initiative. However, with the challenge of fraud on e-payment channels, there would be no surprise if the FGN was apprehensive.
Given Nigeria’s high mobile penetration and low banking population, electronic financial solutions can also play a pivotal role in the FGN’s social welfare intervention programmes.