CBN expresses concern over e-fraudsters’ sophistication

The sophistication of e-fraudsters has become a major concern to the Central Bank of Nigeria (CBN), its Director, Payment Systems Management, Musa Jimoh has said.

Speaking during the Nigerian Electronic Fraud Forum (NeFF) third quarter general meeting in Lagos, he said there was need to tame the rising incidence of e-fraud.

He said that fraudsters are becoming sophisticated, using advanced techniques and technologies to target unsuspecting individuals and organisations.

Speaking on the theme: “New strategies for combating e-fraud in cash-less environment”, Jimoh, who is also the Chairman, Nigerian Electronic Fraud Forum (NeFF), said there was the need to adopt new strategies in combating e-fraud in a cashless environment.

He said: “In our efforts to protect consumers and ensure the integrity of financial systems, collaboration and information sharing are vital. It is undeniable that the transition towards a cashless society has brought numerous benefits and convenience in facilitating financial transactions.

“However, it has also come with its fair share of challenges, particularly in combating electronic fraud.”

Jimoh said the financial sector has increased its use of e-payment systems, adding that the adoption of e-payment channels as a preferred channel of payment has increased the incidence of electronic fraud.

“This heightened incidence of fraud, therefore, brought to the fore the need for the creation of a body (named “the Nigeria Electronic Fraud Forum (NeFF), which consists of relevant stakeholders to actively and proactively react to this challenge to safeguard integrity of the e-payment channels.

“NeFF is a dedicated platform established to combat electronic fraud within the country. It serves as a collaborative forum where various stakeholders, including financial institution, law enforcement agencies and relevant industry players, come together to address and mitigate risks posed by electronic fraud,” he said.

He said the group is striving to promote a safe and secure digital payments ecosystem.

According to him, it is essential that the group members continuously adapt its strategies and stay several steps ahead of fraudsters who seek to exploit vulnerabilities in our systems.

He said NeFF serves as a platform for stakeholders from government agencies, financial institutions, technology providers, law enforcerment agencies, and other key players to come together, share experiences, and develop effective strategies to combat e- fraud.

He said the objectives of NeFF are to boost cybersecurity by strengthening the financial and digital infrastructure resilience to cyber- attacks and electronic fraud.

He said NeFF provides tactics and standards to prevent fraud by identifying and comprehending fraud tendencies and seeking to discover fraud incidents as soon as possible and to take proactive actions to reduce the impact on consumers and businesses.

“The forum encourages education and training initiatives to help its members and other stakeholders improve their cybersecurity skills. Nigerian Electronic Fraud Forum facilitates the rapid identification and reaction to electronic fraud situations by encouraging cooperation and communication among its members This proactive strategy aids in the reduction of financial losses, the maintenance of customer trust, and the promotion of faith in the nation’s electronic payment systems,” he said.

“Overall NEFF is critical to upgrading Nigeria’s cybersecurity landscape and protecting against the ever-changing threats posed by electronic fraud,” he said.