The Central Bank of Nigeria, through the Nigerian Electronic Fraud Forum (NEFF), has announced a collaboration with the Association of Mobile Money and Banking Agents of Nigeria (AMMBAN) to create a new feature on POS terminals that will point out or indicate fraudulent transactions at agents’ locations by requesting for specific KYC details before processing some transactions.
This initiative is part of the apex bank’s effort to tackle fraud-related challenges POS agents face. Fraud continues to pose a dire challenge to Nigeria's economy, especially in the banking sector. Nigerian banks have reportedly lost ₦472 million to POS and mobile fraud in the first quarter of 2023, according to data from the Nigeria Deposit Insurance Corporation (NDIC).
To change this trend, the CBN, via the new feature, will look to strengthen the security around transactions initiated through POS terminals. The new collaboration will also seek to eliminate unauthorised utilisation of mobile money wallets, bank accounts or credit cards and reestablish Nigeria’s reputation as a secure business destination.
The initiative, which is nearing completion, is driven by the NeFF and the Nigerian Interbank Settlement System, according to AMMBAN President Fasasi Sarafadeen Atanda. The feature will be noticeable on PoS terminals used by agents throughout the country, and its launch is expected in the first quarter of 2024.
Furthermore, a coalition involving security agencies such as the Nigerian Police and the Department of State Services, along with AMMBAN and NIBSS, aims to foster easy tracking of fraudsters at agent locations. The coalition proposes a common identification system for the over 1.7 million banking agents on AMMBAN’s database.
Meanwhile, as they await the introduction of the new feature, agents have begun implementing the Central Bank’s BVN-NIN policy, under which new customers must provide either a Bank Verification Number or National Identification Number when opening an account.