Monday, 31 October 2016

Fraudulent bank customers to be blacklisted by CBN

On Saturday, the CBN Director, Banking and Payment ’Dipo Fatokun broke the news at the Nigeria
Electronic Fraud Forum (NeFF) October that the Central Bank of Nigeria (CBN) is working on a framework that will  enable it to blacklist or watch-list fraudulent bank customers across the country’s banking space.

This will start before the end of the year.
He said the framework, when unveiled, would give the regulator the legal backing to use the Bank Verification (BVN) platform to identify, watch-list and blacklist fraudulent account holders in all the 22 banks and Other Financial Institutions (OFIS).

The CBN director, who spoke on the theme: “Exploring new protective measures against social engineering vulnerabilities”, said social engineering has common phenomenon in cybercrime attacks in Nigeria.

He posited that  on a daily basis, a plethora of messages are sent by these criminals with the express intent to con the unsuspecting recipient using techniques that appeal to vanity, greed or authority. It is, therefore, important that we look critically at measures that will protect the industry as a whole from the menace of social engineering attacks.

On the implications of such blacklisting on customers, he explained that for commercial banks, opening an account or having a bank account itself is a contract.
“It is a contract between a willing customer and a willing bank. So, if a bank notices that a particular customer is fraudulent, or is a criminal, the bank has the right to get out of the contract.

 And another implication is that if an account is watch-listed, when the framework is finally approved, if there is a credit into that account and every other person is having his credit within two to three minutes, because the account has been watch-listed based on past activities, credit into such account may be withheld for a longer period while investigations are carried on to actually confirm that it is a genuine transfer,” he stated.

These steps, Fatokun said, would assist the bank, because being able to identify, apprehend and prosecute would go a long way in reducing the problem of electronic fraud.


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