They said that given the sophistication of fraud being perpetrated in the industry, there was a need for partnership among stakeholders, including FinTech companies and security agencies in the interest of customers and banks.
Officials of the CBN, Access Bank, Nigeria Interbank Settlement Plc, among others, spoke at a special fraud awareness workshop organised by Access Bank in celebration of the Anti-Fraud Week in Lagos.
The Director, Banking and Payment System, CBN, Mr. Dipo Fatokun, noted that the introduction of digital system into the payment space had come with its attendant challenges.
Therefore, to win the war against financial crime, Fatokun advised banks to address insider abuse and train their staff members effectively.
Fatokun, who was represented by the Information Analyst, Olubukola Akinwunmi, advised banks to engage and educate customers in order to create more awareness about the dangers of ignorance on the use of electronic fraud.
While stating that the CBN would comply with international standards and regulations on fraud prevention, he said regular conduct of test to assess banking industry resilience against cyber crime and electronic fraud would be done regularly.
He said, “The more we miniaturise; the more we do things on the mobile devices, the more likely we are going to have increasing rate of fraud. Social media is also an aspect that is being used for fraud because they are all linked to mobile.
The Group Managing Director, Access Bank, Mr. Herbert Wigwe, said financial fraud was as old as mankind, while noting that “some men tend toward doing good in life, others are motivated to do evil.”
He said, “If you do the right thing, you are fighting financial crime but if you do the wrong thing, you are aiding and abetting and indeed a part of financial crime.
“This annual event forms part of the engagement lined up to mark the bank’s drive for anti-fraud awareness. The initiative is meant to engage stakeholders on how to proactively solve the industry fraud challenges and to significantly minimise fraud with active collaboration among all stakeholders.”
He noted that digital technology had continued to transform and disrupt the world, adding that the development had come with both opportunities and threats.
Wigwe said, “The digital landscape is rapidly evolving worldwide, and it’s one of the most important drivers of innovation, competitiveness and growth. The advancement and adoption for digital technology enable banks and indeed other industries to achieve greater scale, enter new market and move very quickly and understand their customers a lot better. Online and mobile banking have transformed the way people live and buy. But digital revolution, as we all know, has the backside.”
The Access Bank GMD, however, regretted that digital technology was increasingly creating new opportunities for fraudsters to hack into people’s accounts.
Quoting the Nigeria Inter-Bank Settlement System Plc reports for the first and second quarters of this year, Wigwe said over N877m had been lost to electronic fraud.
This, he said, highlighted the need to chart an effective way to reduce the incidence of electronic fraud and cyber crime in Nigeria.
“There is also the need for us to work with government and all the stakeholders to enact the appropriate security laws and system that guarantee the legality of online transactions,” he added.
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