- Banks Lost N2.19bn to Fraudsters in 2016
The Central Bank of Nigeria on Tuesday said that Deposit Money Banks in the country lost a total of N2.19bn to fraudsters in the 2016 fiscal period.
The figure was contained in the Nigeria Electronic Fraud Forum Annual Report, which was unveiled by the CBN Governor, Mr. Godwin Emefiele, during the NEFF stakeholders’ workshop on cybercrime.
The conference with the theme: ‘Tackling enforcement challenges under the Cybercrime Act’, was held to address some of the impediments to the enforcement of the Act.
The report, which was made available to our correspondent, stated that 19,531 fraud cases were reported for the DMBs in 2016 as against 10,743 in 2015.
It stated that although there was an 82 per cent increase in reported fraud cases as compared to 2015; the banking sector witnessed marginal reduction in the value of attempted frauds and actual losses.
For instance, the report stated that attempted frauds’ value dropped from N4.37bn in 2015 to N4.36bn in 2016, while actual loss value declined from N2.25bn to N2.19bn.
A breakdown of the actual amount lost showed that across the counter transactions accounted for the highest with a total value of N511.07m.
This was followed by Automated Teller Machine transactions, with N464.5m; Internet banking, N320.66m; Point-of-Sale transactions, N243.32m; and mobile banking transactions, N235.17m.
Losses from e-commerce transactions were put at N132.25m; web transactions, N83.77m; cheques, N4.55m; kiosks, N10.19m; and others, N190.97m.
The report read in part, “Based on trend and human perception, it is believed that fraud rates increase towards the end of the year due to festivities observed during this period and the need for people to get more money.
“But the truth is fraud can occur anytime, hence the need for us to always gear up our preventive and detective strategies.”
Speaking on the theme of the workshop, Emefiele, who was represented by the Deputy Governor, Operations, CBN, Mr. Adebayo Adelabu, said the challenges faced while enforcing the Cybercrime Act, 2015 had made it imperative for a review of the law.
He stated, “The protection of information infrastructure utilised in the delivery of financial services is considered critical all over the world, and it was because of the importance of securing infrastructure such as that of the financial sector, and protecting the underlying services from cyberattacks that the Cybercrime (Prohibition and Prevention) Act was enacted in 2015.
Emefiele said, “It is now about two years into the commencement of the Act, and so it is not too early to conduct a holistic review of its implementation.”
“Thus, your deliverables at this workshop should include a careful examination of the extent to which the obligations placed by the Act are fulfilled, and the general assessment of any challenges experienced in compliance with the provisions of the Act.
“It is our natural expectation that following such careful and interesting review, this workshop would have very little difficulty in proffering the much needed solutions and making practical recommendations for the effective implementation of the Act from hereon.”
The governor stated that while the apex bank and banking operators had made efforts to reduce the incidents of fraud and ensure consumer confidence in the payment system, the Cybercrime Act, if effectively enforced, would serve as a deterrent and constant reminder to those who might wish to engage in illicit activities targeting the financial technology infrastructure.
CBN to Extend Credit Risk Management System to OFIs
In an effort to curb growing bad debt, the Central Bank of Nigeria has said it will extend its Credit Risk Management System to Other Financial Institutions (OFIs) operating in Nigeria to protect them from bad debtors.
According to the apex bank, this is important following the successful implementation of the credit risk system in other lending institutions operating in Nigeria.
The bank disclosed this in a circular titled ‘Credit Risk Management System: Commencement of enrolment of all Development Finance Institutions, Microfinance Banks, Primary Mortgage Banks and Finance Companies’ and signed by Kelvin Amugo, the Director, Financial Policy and Regulation Department, on Monday.
In part, the circular read, “As part of efforts to promote a safe and sound financial system in Nigeria, the CBN introduced the CRMS to improve credit risk management in commercial, merchant and non-interest banks as well as to prevent predatory borrowers from undermining the banking system.
“With the successful implementation of the CRMS in deposit money banks, it has become expedient to commence the enrolment of Other Financial Institutions on the CTMS platform.
“Accordingly, all DFIs, MfBs, PMBs and FCs are required to report all credit facilities (principal and interest) to the CRMs and to update same on monthly basis.
“OFIs shall note the Bank Verification Numbers and Tax Identification Numbers are the only basis for regulatory renditions”.
BoI Grows Assets by 78.8% to N1.86 Trillion
The Bank of Industry Group concluded the 2020 financial year with a 78.8 per cent growth of assets from N1.04tn to N1.86tn between 2019 and 2020.
A statement by the bank on Monday said the increase was driven to a large extent by the successful debt syndication of €1bn and $1bn that were concluded in March and December 2020 respectively.
BoI stated that the group’s financial statement demonstrated resilience and strength, noting that the period had significant challenges in the operating environment on account of the impact of COVID-19 pandemic on the economy.
“It also indicates synergy with the various interventions developed by the Federal Government, the Central Bank as well as other strategic partners towards ameliorating the impact of the pandemic on Nigerian enterprises,” the statement said.
The group’s total equity increased by 14.8 per cent from N293.08bn in the previous year to N336.48bn in 2020.
It added that as a reflection of the adverse impact of the challenging operating environment on growth of new facilities, loans and advances grew marginally in 2020 by 1.3 per cent to N749.84bn from the 2019 position.
The bank explained that this was largely due to the economic slowdown in the year as well as the various interventions and support initiated by the bank for its customers.
“The bank reviewed and restructured all its managed projects under the CBN intervention programme with interest rate reduction from nine to five per cent per annum for a period of one year and moratorium extension of three months (with a possible extension up to 12 months),” it said.
TAJBank Deploys NQR Solution To Ease Customer Transactions
TAJBank, Nigeria’s non-interest bank, has announced the deployment of the NQR Payment solution, an indigenous Quick Response Code (QRC) by the Nigeria Interbank Settlement Scheme (NIBSS), for merchants and customers as the newest addition to its innovative e-business channels.
The NQR Payment solution is a secure QR-code-based payments and collections platform developed for merchants and customers to receive and make payments for goods and services in a quick, easy, contactless and secure manner.
A statement signed by the Founder/Chief Operating Officer of the bank, Mr. Hamid Joda, indicated that the ingenious solution would further drive TAJBank’s culture of innovation and create a seamless payment experience for its rapidly growing individual and corporate customers in their banking transactions.
“We are excited to have this payment channel introduced into the nation’s financial system as an addition to other innovative solutions we have deployed over the past few months.
This is a proof that, as we have said in our communications signature line, TAJBank’s interest is always in our customers”, Joda enthused.
In his remarks, the non-interest lender’s Chief Marketing Officer/Co-Founder, Mr. Sherif Idi, also maintained that the deployment of the NQR payment solution would revolutionize the e-payment experience and open new frontiers for small, medium and large scale businesses who are major stakeholders of the bank.
Since it commenced operations in the non-interest banking segment of the financial services industry, TAJBank is noted for its impeccable track record of growth and innovation, rendering exceptional quality services to customers.
The lender’s NQR solution is open to all customers of the bank, both merchants and individuals, across all its branches and digital channels globally.
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