Fraud Greatest Threat to Electronic Payment System—CBN

By Dipo Olowookere

It is no doubt that online transactions are gradually gaining ground each passing day, but one issue  that has given both the sellers and the buyers sleepless nights is fraud associated with electronic payment system.

It is interesting to note that both parties have their different fears concerning the payment system for transactions done online.

While the seller is scared that he may be paid with stolen credit/debit cards, the buyer with genuine payment system is not certain if the seller is real or not and where authenticity is confirmed, there is also the fear of theft of vital transaction details by hackers and internet fraudsters.

Few days ago, the Finance Correspondents Association of Nigeria (FICAN) held its bi-monthly forum at the FICAN Centre in Onipanu, Lagos and the guest speaker identified fraud as the “greatest enemy of electronic payment” also known as e-payment.

But the Director of Banking & Payment Systems Department at the Central Bank of Nigeria (CBN), Mr ‘Dipo Fatokun, disclosed at the workshop that the necessary regulatory agencies in the sector were doing everything possible to address this issue.

According to him, part of the efforts would be for the CBN and the Nigerian Communications Commission (NCC) to tighten the process of SIM Swap to checkmate electronic-payment fraud.

At the forum tagged ‘Electronic Payment Industry, Performance & Regulatory Issues,’ Mr Fatokun noted that in 2016, Nigeria lost about N2 billion to electronic fraud.

“We must adhere to strict rules and regulations and educate the public to combat fraud,” the apex bank executive said.

“Fraud is the greatest enemy of electronic payment because it leads to loss of value.

“Electronic payment must be physically mobilised and traditionally recognised for effective performance,” Mr Fatokun told participants.

At the programme, Mr Fatokun focused on banking security, rising cyber-attacks, and impact of the cash-less banking policy implementation on the economy.

He said despite the problem associated with the system, electronic payment system cannot be done without in the e-commerce industry.