Afrigather The Central Financial institution of Nigeria, via the Nigerian Electronic Fraud Forum (NeFF) is collaborating with the Affiliation of Cell Cash and Banking Brokers of Nigeria (AMMBAN) to create a brand new function on PoS terminals that can flag fraudulent transactions at brokers’ areas by asking for particular KYC particulars earlier than processing some transactions.
“We’re at a really superior stage, and we’re about to complete the expertise facet of it when it comes to activating some options,” mentioned Fasasi Sarafadeen Atanda, President of AMMBAN. He additionally famous that the Nigerian Interbank Settlement System is without doubt one of the drivers of the initiative.
The collaboration effort can also be pushed by the Nigerian Digital Fraud Discussion board, Lilian Phido, the pinnacle of Company Communications at NIBSS, advised TechCabal.
“Fixed innovation throughout the trade underscored the need for the Central Financial institution to ascertain a devoted physique (named the Nigerian Digital Fraud Discussion board) which consists of all key gamers and stakeholders to proactively work collectively in collaboration as an trade in guaranteeing the integrity of the fee methods throughout the nation,” mentioned Phido.
The function might be prominently displayed on the PoS terminal brokers throughout the nation. After a gathering with NIBSS final week, AMMBAN hopes the function might be prepared for launch by the primary quarter of 2024.
There is also a coalition of safety businesses, together with the Nigerian police, Division of State Providers (DSS), AMMBAN and NIBSS, to allow the straightforward monitoring of fraudsters at agent areas. The coalition hopes to mandate a standard identification system for the over 1.7 million banking brokers on the AMMBAN database.
There are additionally discussions for brokers to be skilled and licensed, however different stakeholders take a dim view of this technique.
“The entry level of the fraud isn’t agent location however the truth that some accounts and wallets aren’t tied to actual identities,” mentioned Femi Omegbenigun, CEO of 3Line Card, a Nigerian funds firm. “The truth that these accounts have underlying KYC points means brokers aren’t all the time conscious that the cash they’re disbursing is proceeds of fraudulent transactions.”
And whereas whistleblowing channels exist nationwide, brokers have solely typically used them, mentioned the AMMBAN President. There have been events when banking brokers raised points with specific transactions they thought-about suspicious and reported to the banks, however the monetary establishments did not act.
When the identical points had been reported to safety brokers, they generally requested for cash earlier than taking motion. “The person brokers are all the time discouraged from pushing that as a result of you’ll find yourself losing your cash and assets,” Atanda mentioned.
Whereas they watch for the brand new function on the PoS terminals, Atanda says the brokers have commenced the implementation of the BVN-NIN coverage of the CBN. New clients should present both a BVN or NIN or each to open an account.
