E-Fraud: 1,420 Evade Arrest –CBN | Independent Newspapers Limited
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Business, Personal Finance

E-Fraud: 1,420 Evade Arrest –CBN

Posted: Nov 17, 2015 at 9:00 am   /   by   /   comments (0)

About 1,420 suspected perpetrators of various kinds of electronic frauds in the nation’s financial services sector evaded arrest last year, according to the Central Bank of Nigeria (CBN). Speaking with New Telegraph at a fraud conference organised by the E-Payment Providers Association of Nigeria (E-PPAN) in Lagos, the Director, Banking and Payments System Department of the apex bank, Mr. Dipo Fatokun, expressed concern over low suspect apprehension of perpetrators of electronic frauds in the country by the police.

This year’s edition of the E-PPAN’s e-fraud conference explored areas to strengthen collaboration between the law enforcement agencies, regulators and the payment industry in the fight against electronic fraud and also to define the roles of the merchants, consumers and the payment providers in the fight against fraud.

According to Fatokun, a review of trends across the globe indicated that fraud is still largely driven by domestic transactions. He advocated the need to create an industry body to handle e-fraud issues in the country. Consequently, he said that card-non-present (CNP) fraud poses the biggest threat in Europe, debit card frauds leads in America while in Nigeria, Point of Sales (POS) fraud leads in view of POS growth for cashless policy.

Fatokun, however, noted that frauds initiated externally has become a major threat, as investment in fraud prevention technology is directed more at web, online and CNP frauds “With the booming e-commerce business in Nigeria, online fraud is an emerging threat while the upsurge of domestic POS/Automated Teller Machine (ATM) must be tackled.

We, therefore, must evolve a fraud management approach that addresses internal challenges with robust capacity to manage international threats,” he said. While noting that arrest and prosecution of electronic fraudsters is critical to deterring people from indulging in electronic frauds, he said that the apex bank had started an initiative with the police to strengthen collaboration and build capacity within the law enforcement unit to be able to arrest more culprits. “To this end, it is noteworthy that the Inspector-General, Nigeria Police, has acceded to our request for a card fraud unit within the Nigerian Police Force (NPF).

This is essential, considering the low suspect apprehension rate achieved last year,” he said. Citing a report from by the Nigeria Interbank Settlements System (NIBSS), Fatokun said that of the 1,461 suspected efraudsters last year, only 41 were apprehended by the police.

“This means that about 1,420 suspects could not be nabbed by the law enforcement agents,” he said. He further said that N6.8 billion was lost by various banks and their customers to the inability to arrest the 1,420 suspects. “It is hoped that with the setting up of the unit in the NPF, further success will be achieved,” he said, adding that industry collaboration that gives room for sharing of information and experiences on what has happened to each of the players as far as e-fraud is concerned has become imperative.