*Says e-fraud declined by 35% in 2022

By Nume Ekeghe


The Central Bank of Nigeria (CBN) at the weekend said its recent policy of cash withdrawal limit would aid in curbing electronic fraud (e-fraud).The apex bank’s Director of Payments System Management Department, Mr. Musa Jimoh, who gave this assurance yesterday in Lagos, also disclosed that as electronic payments continued to gain traction, fraudulent transactions in 2022 declined by 35 per cent compared to last year.

Speaking at the Nigeria Electronic Fraud Forum (NeFF) meeting, Jimoh said the new policy would deter criminals from defrauding innocent people because of the withdrawal limits which would automatically trace and block such compromised accounts before the money is illegally withdrawn.

He said: “As we envisage and begin to put some limits on the cash withdrawal that can happen daily the incidence of fraud would also tame down- because right now, they steal huge amounts of money, and then at about from 2 a.m. to 3 a.m., they go to an ATM and withdraw everything. But right now, with the policy on limits, you would not be able to take as much and the system will be able to trace and block such accounts before the money is taken away.

“So, this cashless limit is also a way of deterring fraudsters from taking other people’s money,” Jimoh explained.Speaking on the strides the CBN and NeFF have made in reducing e-fraud, the apex bank official said they have been able to ring-fence the payment infrastructure and the finance system against criminal activities.

He disclosed that already, their efforts have reduced the incidence of fraud by 35 per cent, adding that a substantial amount of money has been recovered through a cocktail of initiatives put in place to check the activities of criminals.

He said: “We have actually tamed down the incidence of fraud. We have recovered so many lost funds and we are putting formidable systems around our payment infrastructure and financial system infrastructure such that fraudsters cannot penetrate.”

“In terms of percentage, it is between 30 to 35 per cent decline in incidences of fraud. Remember, there are attempts and they are successful ones. The number of attempts is high, which means that they have been attempting but they are not successful and some are successful and so money is taken away. And in terms of recovery, we also recovered high numbers in terms of the percentage of the monies recovered because of the different initiatives and systems that have been put in place to checkmate all those fraudsters and to track wherever the money is taken into.”

According to him, plans are being put in place by the CBN and NeFF to ensure that no e-fraud activities take place in Nigerian banks next year.Also speaking at the same event, the Managing Director of the Nigeria Inter-Bank Settlement System Plc (NIBSS) Mr. Premier Oiwoh urged banks to invest more in technology to help reduce fraud from being perpetrated.

Oiwoh reiterated the need for banks to invest in technology to curb fraud citing that artificial intelligence (AI) if used well would help eliminate fraud.Noting that one of the major problems in the nation’s banking industry is the reluctance to report fraud cases, he, therefore, called on the apex bank to ease the process of recovery and the need for each bank to set up a fraud desk.

He said: “Institutions should invest in Enterprise Fraud management (EFM), a fraud monitoring tool. A system is as effective as the person who sets it up. I don’t think the EFM that exists today works. EFM is supposed to be smart. It is an artificial intelligence (AI) that should intercept, analyse, interpret and take actions.” “Also, the recovery process even when these frauds occur, I think is something the CBN needs to look into. Also, a major problem in the industry is that people shy away from reporting fraud. I urge every player in the ecosystem to set up a fraud desk,” he added.

https://www.thisdaylive.com/index.php/2022/12/18/cbn-cash-withdrawal-limits-will-tame-electronic-fraud/

Nlfpmod

Okay, but the fraudsters can still use online wallets.

The CBN assumption appears to be fraud through cards. Fraudsters have facilities to move fund around. At the ATM, you can do a transfer above the daily limit with your card, the POS is a payment platform, you can equally do that much transfer. If your details or card is compromised, this policy won’t protect you as such; except the CBN is referring to petty thieves.

What others do, they don’t even do transfers to multiple bank accounts of those around them; all they need do, is use such wallets to purchase items online. The platforms are instantaneous.

fraudsters withdrawing cash or stealing money at night, has always been limited.

The CBN attempt to muddle the fact sends a dangerous signal, they may not know what they are doing. The policy is not a limit on your daily spending, but a limit on the physical cash you are allowed to withdraw for the day. You can do transactions in the millions on online platforms, so can fraudsters.

The Emefiele led CBN has been naive in its policies, they assume the actors they are dealing with or protecting Nigerians from , have limited brains and resources. Policies have to be well-thought and holistic and such assumptions as they have had, re-examined.

Hon Kazuare recently provided information concerning how these policies are embedded in self-interest and how a deputy governor within the CBN escalated corruption involving Emefiele by whistle blowing. The media didn’t pick the story, because of Emefiele’s influence. The point however is, if there are such internal ramblings in our apex financial institution; they certainly cannot be optimal in their policy delivery.

Also, it may be the case that many of the key workers were rewarded with their job role or position as a result of their ethnicity or contact. It’s such contacts they serve, not Nigerians. For years, CBN can’t even regulate its hiring issues by getting on board- at least the best economics graduate students across the country universities. This don’t help them to make holistic decisions or be able to implement such decisions, even when their intentions are noble.

Shut up and talk about how our currency will start getting valued