The Central Bank of Nigeria has disclosed Biometric authentication will soon be introduced as authentication for Automatic Teller Machine (ATM) transaction across Nigeria.
Making a presentation at a National retreat held in south west Nigeria, the Director in Charge of Banking Payment Systems, CBN Mr. Dipo Fatokun, disclosed Biometric authentication will help in the fight against electronic fraud.
The move towards Biometric authentication on ATM nationwide will be facilitated by the Bank Verification Number (BVN) which has biometric information of Millions of Nigeria already stored.
The Deputy-Director of Department of State Service (DSS) Mr. Yekini Ishola has warned Internet fraud in Nigeria is more prevalent in the south west, especially Lagos, Ogun and Oyo.
Mr.Yekini Ishola made this disclosure while presenting a paper on cybercrimes and the way out at a two-day annual security seminar organised by the Security Department of Nnamdi Azikiwe University Awka.
Decrying the spate of cybercrime among Nigerian youth, particularly in the Tertiary Institutions, the DSS Chief subsequently submitted that Ladoke Akinola University is presently considered has having the highest concentration of cyber criminals.
Cybercrimes are not committed by an individual, but by a network of criminals. Mr. Yekini reiterated. He later warned that activities perpetrated by these syndicates include using identity theft, hacking, malicious software and other fraudulent methods to gain access into personal information and account details of unsuspecting owners.
It has been disclosed that 513 Financial Institution staff were involved in aiding and abetting fraudulent transactions in 2012. Figured released shows- temporary staff constituted 42.46% of the staff involved in the frauds. Clerks and cashiers accounted for 22.03%, officers 16.76% and supervisors and managers 14.69%, while typists, technicians and stenographers were 0.94%.
In the communique presented by the Nigeria Deposit Insurance Corporation (NDIC), the body presented a 6% increase compared to previous year 2011. The major causes of fraud can be grouped into institutional and environmental factors, the body disclosed. Institutional causes include weak internal control system, uncompetitive remuneration, and lack of implementation or partial disregard of the ‘Know Your Customers’ (KYC) rules. Environmental factors include societal demands, low moral values, lack of effective deterrent and punishment, reluctance on the part of the individual banks to report fraud cases.
A total of 2 billion Naira was lost through the Nigerian banking e-channel in 2012 sources disclosed. Accounting for over 65% of the total fraud cases in the year, majority of the fraudulent transactions were perpetuated though ATM, Fraudulent transfer/withdrawals, and Internet banking channels.
Speaking at the 12th Quarterly General Meeting of the Committee of Chief Inspectors of Banks in Nigeria (CCIBN) in Lagos, Managing Director and Chief Executive Officer of Fidelity bank Plc, Mr. Reginald Ihejiahi expressed the lack of co-operation among banks as a growing concern. The present silence among banks on ATM frauds makes it difficult for banks to share vital information that would help curb the menace, the fidelity bank chief emphasized