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Fraud Cases hit major payment channels across Nigerian Banks 

Major payment channels in Nigeria were hit with the high reported fraud incidences in 2018, according to the Central Bank of Nigeria (CBN),

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Nigerian Banks, Fitch

Major payment channels in Nigeria were hit with the high reported fraud incidences in 2018, data obtained by Nairametrics from Central Bank of Nigeria (CBN) revealed.

The apex bank’s Financial Stability Report disclosed that the payment channels hard-hit include Automated Teller Machines (ATM), Point of Sales (POS) and Mobile.  

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Details provided show that ATM recorded the highest incidences of fraud in Nigeria with 34.87% Fraud Interest Index in the period under review. Also, the Mobile payment channel ranks the second with the highest fraud incidences with 28.21% Fraud Interest Index, while POS recorded 19.55% Fraud Incidences in 2018.  

Fraud incidences recorded across other payment channels include “across the counter” (8.52%), Cheques (1.87%), E-commerce (0.14%) and Internet Banking (0.43%).  

Payment Channels’ Fraud: Earlier report published on Nairametrics showed that cases of fraud and forgeries recorded by Deposit Money Banks (DMBs) rose to 25,029 at the end of December 2018, from 20,774 cases at the end of June 2018. In terms of the amount involved, the sum of N18.94 billion was recorded as cases of fraud and forgeries in 2018 full year, with actual losses estimated at N2.21 billion. 

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Also, according to an earlier report released by the Nigerian Electronic Fraud Forum (NeFF), electronic bank fraud cases over the last three years (2016 – 2018) rose to N5.571 billion. According to the NeFF report for 2018, while the value of fraud perpetrated across counter has been on the decline over the last three years, the ones done via Automated Teller Machines and mobile devises has been on the increase. 

Cloned ATM Card Alerts: The CBN 2018 report further shows that there is rising trend in payment channel fraud in the World. While providing details on the global trend, CBN noted that the U.S Bureau of Investigation had issued a warning to banks on a new type of fraud known as the ATM Fraud or ATM Cloned Card fraud”.  

Basically, the ATM cloned Card fraud involves hackers accessing bank systems or payment card processors and altering data in order to withdraw large sums of cash within a short period. 

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[READ ALSO: States’ IGR hits N691 billion as Osun, others recorded biggest growth]

By the end of December 2018, various cyber-attacks had been carried out on high profile entities, including the Central Bank of Bahamas, Marriot Hotels, Google plus, Arik Air, British Airways and UK NHIS, leading to the loss of customers’ private information, revealing the vulnerability of all classes of organizations 

In order to tackle this trend in Nigeria, CBN noted that bank customers are continually sensitized on safe banking practices while banks are also encouraged to implement strong authentication controls and carry out comprehensive infrastructure risk assessments. 

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Patricia

Samuel is an Analyst with over 5 years experience. Connect with him via his twitter handle

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China more willing to restructure Africa’s debt than private creditors

Agreements have been easier to reach with Chinese lenders than with private creditors.

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A recent study by John Hopkins University reveals it may be easier for African Nations to raise debt and also get debt relief from China than private creditors.

The report of the study comes a day after China promised to cancel interests from loans to African nations and restructure debt to Africa. The study also revealed that China has restructured $15 billion of African debt and written off $3.4 billion in the past ten years.

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After 1,000 Chinese loans, including restructured Mozambican and Republic of Congo debt, were analysed, the researchers concluded that “the agreements have been easier to reach with Chinese lenders than with private creditors”.

The Paris Club recently agreed to pause debt payment valued at $11 billion for the poorest 73 nations freeing up capital to tackle the coronavirus pandemic. However, not all eligible nations signed up citing fears of default ratings if debt obligations are not met.

The study discovers difficulties in renegotiating terms on International Bonds for African countries due to the disparate ownership structure making private creditors unwilling to grant complete debt relief, citing warnings on rating downgrades.

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China accounts for about 20% of Africa’s external debt and lent over $150 billion to the continent between 2000-2018 the study reveals. Chinese President, Xi Jinping has urged global leaders to be more pragmatic with debt suspension for Africa.

The study says much of the terms of Chinese debt to Africa has not been transparent and the relief negotiations may follow the same path.

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Orange, France’s largest telco operator, may come to Nigeria in months

Orange would also be looking at bolstering partnerships with health companies or institutions.

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Orange, France's largest telco operator, may come to Nigeria in months

France’s largest telecom operator, Orange, is set to extend its tentacles to Nigeria and South Africa.

Chief Executive Officer, Orange, Stephane Richard, who disclosed the news, said that the firm would make the move in a few months.

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He said, “It could make sense to be in economies such as Nigeria and South Africa. If one considers there are things to do, the time frame I am considering is rather a few months than a few years.”

READ ALSO: French telco inks investment partnership with MainOne

The Middle East and Africa, where Orange has a presence in 18 countries, is the company’s fastest-growing market.

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What you need to know: There are chances that the company may eye payment transfers (mobile) in Nigeria.

That is because it makes the largest chunk of its revenue from payment transfers (Middle East), a key part of the group’s diversification into financial services, and Nigeria, which is the most populous black nation, is always an attraction.

READ MORE: Multichoice to integrate Netflix, Amazon contents into decoder

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Meanwhile, earlier in 2020, Orange had stated that it was bringing its operations in the Middle East and Africa into a single entity, paving the way for a potential listing of the operations that could raise cash to invest in overseas expansion.

“Orange would also be looking at bolstering partnerships with health companies or institutions,” he added.

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LIRS further extends deadline for filing annual tax returns by one month

“We constantly debated what other measures could be taken as an organization to support individuals and businesses at this time, hence, the additional one-month extension from June 1, to June 30, 2020.” – Ayodele Subair

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LIRS further extends deadline for filing annual return by one month

The Lagos State Internal Revenue Service (LIRS) has again extended the deadline for filing of Annual Tax Returns from May 31 2020 to June 30, 2020.

This is part of the state government’s effort to provide relief to taxpayers in light of the economic impact of the Covid-19 pandemic. With this development, annual returns for individuals, both employees and self-employed persons, can be filed anytime before June 30, 2020.

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In a press release signed by Monsurat Amasa, the head of LIRS’ Corporate Communications Department, the agency urged taxpayers to take advantage of the magnanimity of the government and file their returns. The LIRS’ Executive Chairman, Mr. Ayodele Subair, explained the extension thus:

“As the Lagos State Government keeps abreast of global best practices in containing the Covid-19 pandemic and eases the effects of an economic downturn on taxpayers and residents of the State, LIRS had initially extended the deadline for filing annual tax returns for two months, from the statutory March 31st of every fiscal year to May 31, 2020.  

“We constantly debated what other measures could be taken as an organization to support individuals and businesses at this time, hence, the additional one-month extension from June 1, to June 30, 2020.”

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(READ MORE: COVID-19: Lagos issues new guidelines, considers full reopening of economy)

He further explained that taxpayers can file the annual returns from the comfort of their homes and offices using the LIRS eTax platforms. They can also generate assessment and payment schedule, and other tax administration matters on the same platform. Updates on business operations and alternative payment platforms are to be found on the verified handles, and the LIRS website.

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