The Central Bank of Nigeria (CBN) yesterday pegged maximum daily transactions through mobile phone- Unstructured Supplementary Service Data (USSD)— at N100,000. The implementation of the policy starts June 1.

Due to absence of set rules on USSD transactions, many commercial banks allow various limits, ranging from N100,000 to N500,000 and above in some cases, depending on customers’ risk absorption levels. This has exposed many customers’ transactions to high risk, with billions of naira lost to fraudsters.

The new framework signed by CBN Director, Banking & Payments System Department, ‘Dipo Fatokun said vast applications of the USSD technology, in terms of available services have raised the issue of the risks inherent in the channel.

The USSD technology is a protocol used by the GSM network to communicate with a service provider’s platform. It is a session based, real time messaging communication technology, which is accessed through a string, which starts normally with asterisk (*) and ends with a hash (#). It is considered cost effective, more user-friendly, faster in concluding transactions, and handset agnostic.

The framework noted concerns on the likely exposure of CBN approved entities to the possible breaching of the USSD accessed financial services in view of likely vulnerabilities in the technology and the ever growing threats.

Fatokun said the policy shift was in furtherance of CBN’s mandate to develop and enhance security of the electronic payment system. The implementation of the policy starts June 1, 2018.

Fatokun had in a circular to banks, switches, Mobile Money Operators (MMOs), Payment Solution Service Providers, Microfinance banks, among others, Fatokun said although the N100,000 limit per customer, per day for transactions applies, customers desirous of higher limits shall execute documented indemnities with their banks or MMOs.

The CBN, he said, has also mandated the use of an effective second factor authentication by customers for all transactions above N20,000. This, he said, shall apply in addition to the Personal Identification Number (PIN) being used as first level authenticator, which applies to all transaction amounts.

According to the framework, banks shall not send the second factor authentication to the customer’s registered GSM number or device; and it shall not be generated or displayed on the USSD menu.

Banks, it added, are also required to install a Behavioural Monitoring system with capability to detect SIM-Swap/Churn status, user location, un-usual transactions at weekends, among others. This shall be achieved by 31st October 2018.

The framework said financial Institutions shall be responsible for setting up dispute resolution mechanism to facilitate resolution of customers’ complaints and shall treat and resolve any customer related issues within three working days. Also, non-compliance shall be subject to penalty, as may be prescribed by the CBN, from time to time.

“There shall be Service Level Agreement between the Financial Institutions and MNOs/VAS & aggregators, benchmarked against the Nigeria Communication Commission Quality of Service (QoS) regulation and service availability requirements of electronic payment services of the CBN,” it said.

It said service providers should put in place systems that enable users/subscribers to block their account from operating USSD service and that no USSD financial service should be activated for customer unless the deactivation mechanism is put in place with effect from June, 2018.

On penalties for infractions, it said the appropriate Regulator (CBN and/or NCC) as applicable shall impose appropriate sanctions for any contravention on any participant that fails to comply with this framework.

The new framework is in exercise of the powers conferred on the CBN by Section 47(2) of the CBN Act, 2007, to promote and facilitate the development of efficient and effective system for the settlement of transactions.

https://www.financialwatchngr.com/2018/04/27/cbn-sets-daily-limit-of-n100000-on-mobile-ussd-transactions/

Mynd44, Lalasticlala, Seun

Even CBN won't allow us withdraw our money in peace...Is it their money?

Whether two factor or Four Factor authentication it doesn't stop fraud

Hehehehe emiefiele keeps getting clueless everyday.

Worst cbn governor Ever!!!!!!!

Buhari regime is a total failure ....look at this clueless man.

Okay
A welcome development for security of customers funds.
You also have the option of increasing your limit, but at your own risk

CBN, Is it your money?

Una FADA

Awon Yahoo boys will be delighted with such news! Can't wait!

nice one...fear fraudsters

Over to you fraudsters to re strategize.


Thumbs up CBN

Good

No no no no no.
What if I want to buy a new car ?

I support this initiative. Awon scammers ntoor!


The risks associated with USSD transactions are too much.

If you want bulk money movement, use debit/credit card or visit the banking hall.

Kudos to CBN!

hmm

Kudos CBN

Exactly my thoughts on forestalling all forms of scam via SIM hacking linked with bank accounts.

What's the need of promoting mobile banking.
This government is confused they need deliverance

jhydebaba:
Over to you fraudsters to re strategize.


Thumbs up CBN

Except You probably don’t have money on your account.


This is going to affect everybody

music4me:
Even CBN won't allow us withdraw our money in peace...Is it their money?

sorry that you failed to comprehend nothing from the message. Maybe you should re-read it all over again.

music4me:
Even CBN won't allow us withdraw our money in peace...Is it their money?

Did you ever read this article or you just rushed off to be in first comment place. In Summary, CBN is trying to limit that huge amount of money fraudsters lift from your bank account when they have your phone like the case of one guy who reported here the last time about 400k plus been fraudulently deducted from his account and how he got it back.

CBN here is trying to limit that huge loss of money and also mandating the use of PIN for transactions more than 20k. This is to ameliorate fraudulent practices perpetuated using the USSD bank codes.

Read, Read, Read! Not everything is worth the instant gratification, okay you had the first place now but couldn't understand the message passed. Does it make it sense?

...
Pls make it 10k.

Let dis big men feel what we re feeling

This is really nice. Kudos to cbn



Check my signature for your quality customised Atm card flash drive.

Nice one!

Just like d app that allows 500k per day.
If u transact up to a million, u'll need a hard token...
There was a time I got tired of 1million limit with my token so i got into my bank to ask for a way forward!
My people, wen the customer care gave me a form, i didn't understand any English there but I knew it didnt mean anything good......
I quickly returned the form and told her coming to the back for transactions above 1m would not be a problem.
She simply gave me a sheepish smile!

Hh

EarthXmetahuman:
Hehehehe emiefiele keeps getting clueless everyday.

Worst cbn governor Ever!!!!!!!

what are you smoking? This is a great decision that he made. Do you know how much people lose daily due to fraudulent USSD transactions? Did you even read the post to understand why the decision was made? Lazy Nigerian Youth

Somebodydaddy01:
Buhari regime is a total failure ....look at this clueless man.

dumb skull fvckstard.

for the fact that you Don't have penny in your empty bank account doesn't' mean everybody should be wretched like you due to illegal withdrawals from fraudsters.

go get a life and stop behaving like a goat on public forum,because of hatred for a man that has achieved the level of success that your past,present and future generations can never attain .

They promised us $1 to N1 , now they are preventing us from spending our money. Buhari just resign abeg

CBN what is your business? Is it your money!?
If you know the stress we go through just to withdraw money from these wack banks forming high standards you won't do this nonsense. Most banks can have up to 10 ATM machines but only one will be dispensing cash.. the queue of those waiting for their turn long pass anaconda sef. Especially on fridays. This country just love to stress it's citizens

CBN has a point though

[s]

haibe:
what are you smoking? This is a great decision that he made. Do you know how much people lose daily due to fraudulent USSD transactions? Did you even read the post to understand why the decision was made? Lazy Nigerian Youth

[/s]so because of fraud that can be prevented, people have to suffer because they do not know how prevent ussd fraud.

You are even dumber than emiefiele.


Most frauds even happen online, what next? He is gonna restrict online transactions too?

EarthXmetahuman:
Hehehehe emiefiele keeps getting clueless everyday.

Worst cbn governor Ever!!!!!!!

Other countries does that for the safety of money , check the security side of it in terms of when someone else got access to your money and start withdrawing it and the limit is 100k before you find out. stop politicizing everything .

music4me:
Even CBN won't allow us withdraw our money in peace...Is it their money?

When problems comes now you will open book of lamentations.
Abeg weldone and kudos to cbn.