Effective Legal Framework Will Curb e-fraud

The Economic and Financial Crimes Commission (EFCC) has said instituting effective legal framework and prosecution of fraudsters will help curtail rising cases of e-fraud in the banking sector.

Member, Bank Fraud Section at the EFCC, Ibrahim Shazali disclosed this at the weekend during a workshop organised by the Nigeria Deposit Insurance Corporation (NDIC) for Business Editors and Correspondents in Ilorin, Kwara State.

“Nigeria, as a developing country, is particularly exposed to e-fraud because we are simultaneously dealing with underdeveloped Information Technology (IT) and legal infrastructure,” he said.

Speaking on: Investigating Electronic Transactions in Nigerian Banks: A Forensic Auditors Perspectives, Shazali stated that as at last year, it was reported that Point of Sale (PoS), Automated Teller Machine (ATM) and mobile banking were the major avenues by which e-fraud was perpetrated.

Citing statistics from the Inter-Bank Settlement  System (NIBSS), he said fraud attempts increased from N485 million in 2013 to N6.2 billion last year, representing 1, 178 per cent increase.

According to him, in terms of perpetrators of fraud, Nigerian banks, like their global counterparts, experience more external than internal fraud.

“In spite of this alarming, rapidly growing figures, there are lack of a well-defined legal context for prosecuting cyber crimes and financial fraud related to electronic platforms,” EFCC representative lamented.

On the curbing of the rate of e-fraud, he called for compulsory adoption of Know Your Customer (KYC) and the bank verification number (BVN) registration for every banking customer.

Also, speaking on the topic, “E-banking and Financial Inclusion,” Head, Financial Inclusion Secretariat of Central Bank of Nigeria (CBN), Mrs. Temitope Akin-Fadeyi disclosed that the benefits of electronic payments in the country are expected to be about $900million by 2020, through reduced leakage of funds, better access to financial services and lower transaction costs.

She further noted that financial inclusion enables undeserved people and communities to have access to financial services that would enhance their economic opportunities, boost productivity in various sectors and, contribute to economic development.

She, however, hinted how e-banking could support financial inclusion, explaining that for the e-banking technologies to be successful, financial institutions must consider critical factors such as, “understanding customers’ needs, organisational flexibility, availability of resources, systems security, having multiple integrated channels, e-channel specific marketing, systems integration, support from top management, and good customer services.”



Source: The Nation Nigeria

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