Technology key to eliminating e-fraud, money laundering

Technology remains a key tool for banks and other financial services to provide seamless services. But such also come with risks.

In recent times, reported cases of electronic fraud and money laundering have increased.

This calls for urgent attention as the Central Bank of Nigeria (CBN), other regulatory agencies and stakeholders are urging financial service providers to design a product that will help mitigate and curb fraud to the barest minimum.

For instance, Internet/online-banking and automated Teller Machine/card -related fraud-types reported constituted 92.68 per cent of all the reported cases worth N15 billion yearly, CBN report said.

Also, 67 bank customers lost over N11.7 billion to insider-related frauds in one year, a petition to Chartered Institute of Bankers of Nigeria (CIBN) showed.

Other miscellaneous crimes such as fraudulent transfers/withdrawals, cash suppression, unauthorised credits, fraudulent conversion of cheques, diversion of customer deposits, diversion of bank charges, presentation of forged or stolen-cheques among others also made the list of malpractices.

It is the need to address these cases that made Interswitch to launch ISaaS to fight fraud and financial crime. In a report, the payment company said ISaaS helps to protect customers against payments fraud tendencies.

“Specifically, it protects customers against card fraud, application fraud, payment fraud, merchant acquiring fraud and money laundering among others,” it said.

Managing Director, Interswitch Purepay, Akeem Lawal, explained that by integrating the solution into financial institution’s platforms, customers’ data and funds could be guaranteed from fraudsters’ attack.

Besides, the Interswitch mobile banking app avails medium and small-sized Microfinance banks opportunity to offer digital financial services to their customers.

“Customers of microfinance banks will be able to download the app from the app store.The app will include major banking features to cater to every client’s need such as money.

“Also, transfers, mobile top ups, bills payment, self service requests, card services among others. Microfinance banks on the jumbo-app will be sharing a single software and a single database.

“There is also Payment As A Service (PAAS), a payment platform that will allow financial institution and Fintechs extend payments services to their customers,” he said.

Also, the PAAS enables financial institutions perform the usual cards issuance, process transactions, access to collections and disbursement platforms. It will allow financial institutions to integrate to newer payment channels.