The Central Bank of Nigeria through its Director, Banking and Payments Department, ‘Dipo Fatokun, has revealed that commercial banks will bear the cost of “fraud” perpetuated on customers accounts who lose money through the mobile money-driven Unstructured Supplementary Service Data (USSD) .
Most commercial banks prod customers to use the USSD Banking platform to transfer money to third-party, buy airtime, open accounts, pay bills and book travels, among other services, using their mobile phones. However, customers do not really need to use a PIN to consummate a transfer.
CBN Director, Banking and Payments Department, ‘Dipo Fatokun,
“Recent developments in the electronic payments system and implications for consumers of electronic payment services….We have reviewed the process of USSD and instructed banks that they must use a PIN. It is possible for people to come in contact with your phone, and also come in contact with your ATM card and so, use the last four digit of your card as PIN and that is dangerous.
Give a customer a PIN, which is known only to him. One of the banks, I won’t mention names, told us they needed to do system configuration, to ensure that customers can use one time password (OTP) or give the customer password or a token….Meanwhile, until that is done, the banks assured us, in writing, that any customer that suffers losses, they would pay. So, if you have cases of people who have suffered losses on USSD platform and their money has not been refunded, let us have it,”
Should Banks be the ones to blame?
Source: Banks to pay for mobile money transactions fraud
