Tuesday, July 28, 2015

IT firms, banks collaborate to curb e-payment fraud

The Central Bank of Nigeria, some commercial banks and commercial banks and Information Technology security firms, including Winigroup Limited, are currently exploring ways to jointly curb the menace of e-payment fraud
The Director, Banking and Payments System, CBN, Mr. DipoFatokun, said the CBN, along with relevant stakeholders, was exploring ways to establish an industry security operation centre and a risk information centre to consolidate its strength at reducing e-payments fraud to the barest minimum and enhancing trust in payment system.
He spoke at a total fraud protection forum organised in Lagos by Winigroup and Easy Solutions to sensitise the banking industry to the latest threats from hackers and electronic fraudsters.
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He said WiniGroup had been a partner in the journey towards combating e-fraud and secure e-payments ecosystem.
A former deputy governor, Central Bank of Nigeria, Mr. TundeLemo, also at the event said for Nigeria’s electronic payment system to be secure from activities of cybercriminals, banks need to create a safe environment.
Lemo said, “They should also create a brand and fraud intelligence, safe browsing and device analytics,” he said.
He said, “I recall that fraud incidence on magnetic stripe was as much as 90 per cent until we introduced chip and pin. We can only fight fraud if we work together. Unless we have a forum for cross-fertilisation of ideas; we may not know what the other guys are doing.”
He urged the CBN to quickly galvanise banks to get better technology solutions to prevent electronic frauds and take up consumer protection.
The Director, Europe, Middle East and Africa for Easy Solutions, Mr. Jeremy Boorer, said Nigerian banks were up in a battle with e-fraudsters who were daily devising new strategies to steal financial information and money from bank accounts.
He called on the banks to deploy mobile fraud prevention, transaction risk monitoring, fraud intelligence, cloud and email authentication, safe browsing and clientless malware detection in their electronic channels.
Boorer said banks needed to take proactive mitigation measures for account takeover, Internet scams and malicious activities against their brands.
“Banks also need to have proactive malware detection and threat analytics on their customer devices, real-time transaction anomaly detection and risk evaluation, transparently deploy multi-layered security in their mobile banking application as well as stop email spoofing with fastest path to full DMARC application,” he added.
He also advised that they should provide transparent malware protection for all clients with zero friction, multi-factor authentication for web and cloud applications.
He warned about the existence of fake apps claiming to come from banks, saying once downloaded and financial information entered, including credit/debit cards details and personal identity numbers, “the bank customer money is gone as the fraudster will clone the cards or transfer monies immediately.”
The Vice Chairman, Winigroup, convener of the anti-fraud forum, Tim Akano, said fraudsters were using Bank Verification Number policy and other means to dupe bank customers.
Akon welcomed the CBN’s collaboration with experts within and outside the banking industry as well as law enforcements agencies under the Nigeria Electronic Fraud Forum to take advantage of new ideas including the ones expressed at the forum.