Electronic fraud losses will hit N6tn by 2021

The Central Bank of Nigeria (CBN) has warned that electronic fraud losses in the banking system would reach N6.1 trillion by 2021. Mr Sunday Salam-Alada, Director, Consumer Protection Department of CBN, said in Benin City at the ongoing workshop for Business Editors and Finance Correspondents, organised by Nigeria Deposit Insurance Corporation (NDIC). According to him, the volume and value of e-transactions is projected to continue to increase nationally and globally. Salam-Alada, represented by Mr Ibrahim Hassan, Director, Research, Policy, International Relations Department (RPIRD) NDIC, said it was due to broader ecosystem scope, evolution of channels, adaptability to disruptive innovations and modes payment. He said other reasons included increased inclusion and evolving technologies.

The director also said that the CBN, through its Consumer Protection Department (CPD), had resolved over 13,715 complaints. Salam-Alada added that this resulted in the refund of about N72.2 billion to customers by the commercial banks based on 25,043 cases of fraud in 2017. He said the amount represented a 28 per cent increase if compared to 19,531 cases recorded in 2016. Salam-Alada said there was a 24 per cent reduction in actual fraud loss value in 2017 with N1.63 billion as against the to 2016 figures.

According to him, the statistics provided by the CBN shows there is a significant increase in the year-on-year volume and value of transactions across all payment channels in Nigeria. Consequently, 1.4 billion transactions with a value of N97.4 trillion were processed in 2017 as against 869 million transactions with a value of N69.1 trillion recorded in 2016. He said the increase of 59.7 per cent and 40.9 per cent were recorded in the volume and value of transactions in 2017. The director hinted that the CBN would soon issue a framework on consumer protection. Salam-Alada said the CPD conducted a mapping exercise of financial literacy activities in the country. He added that it was one of the achievements of the department. He said the achievements also included the biannual consumer protection compliance exams and review of the guide to banks’ charges.

(NAN)