In a new move to end SIM-swap related e-fraud, the Central Bank of Nigeria (CBN) and Nigeria Communication Commission (NCC) have initiated a biometric-based SIM swap measure.
The new measure which could take effect before December requires telecom subscribers who intend to swap their SIM cards to secure bank approval that will include biometric verification.
CBN Director, Banking & Payments System Department, ‘Dipo Fatokun, speaking at the weekend, noted that the regulators had discovered that some e-fraudsters swap the SIM card of victims and take huge sums of money from their accounts.
He said bank customers lost over N2 billion to e-fraud in 2016, and that both regulators were ready to implement the regulation that will require bank approval and biometric identification before a telecom subscriber’s SIM Card is swapped.
Commenting on the threat of e-fraud to electronic payment, Fatokun said e-fraud remains the biggest challenge facing the electronic payment sector and needs to be collectively tackled by customers, banks and financial sector regulators.
Fatokun explained that what the fraud perpetrators do is to walk up to a service provider and claim to be owner of the line. And given that the process for doing a change of SIM card is so loose, the telecom company would change the SIM card for the person and so he assumes the phone number.
The fraudster then puts the SIM card in another phone and starts using the Unstructured Supplementary Service Data (USSD) to make transfers out of the account into another account.
He however said CBN is working with the NCC to tighten the process of SIM card swap which may include biometrics and a unique number may be required.
Biometric verification
Biometric verification is any means by which a person can be uniquely identified by evaluating one or more distinguishing biological traits.
Unique identifiers include fingerprints, hand geometry, earlobe geometry, retina and iris patterns, voice waves, DNA and signatures.
Fatokun also commended the success achieved so far with the use of BVN to track activities of fraudsters in the system, adding that work is in progress to harness its potential in identifying curbing illicit financial activities.
So, the BVN is going to be a game changer in the respect. We are working on the final framework and when it is concluded, it would be issued to the industry, he stated.
