Business
CBN steps up anti-fraud measures
In from Ali Smart …
The Central Bank of Nigeria (CBN) has taken strategic steps to ensure that the level of fraud arising from e-payment transactions are reduced to the barest minimum, CBN Director, Banking and Payments System Department, ‘Dipo Fatokun has said.
Speaking during the Finance Correspondents Association of Nigeria (FICAN) Bi-Monthly Forum held in Lagos on Friday, he said the Payments System Vision 2020 launched in 2013, was meant to achieve the re-organisation of the National Payments Governance Structure and encourage more people to embrace e-payment transactions.
Fatokun, who was represented by the CBN Deputy Director, Banking and Payments System Department, Musa Jimoh, said the project identified agriculture, smart cities, health, transportation, hotels, entertainment, government flow, education and Consumer Bill Payment as well as direct debits as focus areas.
However, Fatokun explained that the absence of a unique identifier in the banking industry has negative consequences on the growth of e-payments and that the need to resolve the challenge that prompted the CBN, in collaboration with the Bankers’ Committee to launch the Bank Verification Number (BVN) project.
The project, he said, will help build confidence of customers on the e-payment channels and enhance integrity of transactions.
Also, the CBN mandated all Banks, Switches and Processors to comply with Payment Card Industry Data Security Standards (PCIDSS) and subsequently conducted an oversight on compliance which showed that most banks had been certified.
Read also: Beware of virtual money, CBN warns
He said the certification lasts for one year and banks are currently at various levels of re-certification. He explained that PCIDSS is a global compliance standard for any entity that stores, transmits or processes card payment data.
He said payment systems have moved from the backroom to the boardroom of organisations given its strategic importance in today’s globalised world. He said a well-functioning payment system plays significant role in supporting the economy.
He explained that such significance prompted the apex bank to promote a payment system where the underserved and non-served are integrated into formal financial services sector.
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