The Central Bank of Nigeria on Monday said it would introduce a software that could prevent and detect fraud in the financially system in 2013.
The Governor, CBN, Mr. Lamido Sanusi, said at the meeting of the Nigeria Electronic Fraud Forum that the software would be domiciled in the Nigeria Inter-Bank Settlement System.
Sanusi, who was represented by the CBN Director, Banking and Payment System Department, Mr. Dipo Fatokun, said, “Although, the banks have their own software to prevent fraud, we want an industry software. This software will address all forms of fraud.”
He added that plans were in place to set up information and risk management working group that would ensure that fraud was reduced to the barest minimum.
Sanusi said, “Having recognised the need for a risk management framework for the payments system, the PSV2020 initiative is in the process of creating a group continuously dedicated to the management of payments system risks.
“When finalised, the proposed information security and risk management working group’s membership will be drawn from the CBN’s Risk Management Department, Internal Audit Department, Information Technology Department, Banking and Payment System Department as well as from the Deposit Money Banks, payment solution providers, IT audit firms and risk management consultants.”
The CBN boss said that the smooth functioning of payment systems was not only impactful on payments and settlements but was also critical to certain public policy objectives.
The Chairman, Nigeria e-Fraud Forum, Mr. Emmanuel Obaigbona, said the adoption of EMV technology on Automated Teller Machine cards had reduced fraud drastically on ATMs.
He, however, said that fraud migrated to other channels particularly ‘Card Not Present’ transactions.
Obaigbona said, “There was the need for a body with a holistic approach to combat all sorts of e-payments frauds. Hence, the Nigeria e-Fraud Forum was formed. The CBN set up an industry wide Nigeria e-Fraud Forum, which serves as the body representing the industry on electronic fraud related issues.
“This initiative was part of measures taken to ensure successful implementation of the cash-less Nigeria policy. The forum is tasked with formulating cohesive and effective fraud risk management practices through information and knowledge sharing with key industry stakeholders with the overall aim of tackling e-fraud.”
Obaigbona noted that fraud incidences negatively impact confidence in the entire system and not just on the institution impacted.
He said, “All stakeholders must be adequately informed and prepared to collaboratively and proactively tackle fraud risks. E-fraud attempts to significantly increase as we migrate towards electronic payments.”