BY COBHAM NSA, BENIN – The Central Bank of Nigeria (CBN) says its proactive measures have put smiles on the faces of banks customers with a whopping N66.5 billion so far refunded to them by Deposits Money Banks (DMBs) in the country.
The refunds are coming from the about 13715 complaints that have been resolved by the apex bank under its robust customer protection policy.
This is even as the apex bank warned that it will no longer condone malfeasance by banks that tends to defraud depositors and banks’ customers of their hard-earned funds
CBN’s Director, Consumer Protection Department, Mr S.K Salam-Alada said the amount is in addition to $18.5 million; €26319.03 and £9,085.98 already returned to some consumers.
Salam-Alada said CBN introduced the consumer protection programme to promote the economic health of financial institutions as well as create public trust and confidence in Nigeria’s financial system.
Speaking at the annual Nigeria Deposit Insurance Corporation (NDIC)’s seminar organized for Business Editors and Finance Correspondents in Benin, Salam-Alada admitted there are huge challenges in the financial industry with increased volume and value of transactions due to modern technology.
According to him, the development has not only heightened the risk factors for bank consumers and financial sector operators, but also exposed them to activities of fraudsters within the system.
The apex bank director hinted that in 2017 alone, over 25,043 fraud cases were reported by DMBs as against the 19,531 cases recorded in the preceding year.
He said though the figure represents about 28 per cent increase on the reported fraud cases, the good news is that the industry witnessed a 24 per cent drop in actual fraud-related losses in 2017 compared to the happenings in year 2016.
Salam-Alada however said projections are that electronic transactions are projected to continue to increase nationally and globally as a result of broader ecosystem scope, evolution of channels, increased inclusion, evolving technologies and adaptability of disruption innovations/ modes of payment.
While decrying the negative effect of e-fraud on the Nigeria’s economy, Salam-Alada lamented that state actors are increasingly targeting financial infrastructure to undermine nation’s states, noting that e- fraud occurs largely due to compromises in security, ranging from weak authentication system to poor internal controls.
He said given the emerging challenges in the financial industry, operators must deploy cutting edge technology; knowledge and competence to tackle fraud, especially through preventive measures, investment in technology solutions and effective communication of anti-fraud procedures.
The director said fraud and other related crimes have negative impact on banks and their operations, noting that besides damaging their reputation, it breeds national embarrassment, and undermines the Nigerian payments system vision 2020 as well as erode trust and confidence in the financial system.
