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Reducing electronic fraud through card control

By Chijioke Nelson
09 November 2016   |   2:27 am
Globally, card fraud is on the rise reaching $21.84 billion in 2015, with an expected peak in 2018 of $31.26 billion. It is estimated that globally, nearly one in three consumers ...

electronic

Globally, card fraud is on the rise reaching $21.84 billion in 2015, with an expected peak in 2018 of $31.26 billion. It is estimated that globally, nearly one in three consumers are victimised by card fraud, with almost one in five consumers experiencing fraud multiple times in the past five years.

Of course, these unsavoury developments erode consumer trust in their banks and generate losses for multiple parties including banks and merchants.

While a general upsurge in financial services-related fraud has been reported, it is quite encouraging to note that recent reports reveal that losses to fraud within the Nigerian banking system have reduced in the last few years.

Thanks to various technologies and regulatory initiatives, the Nigerian banking system appears to be improving in terms of fraud.

This is further supported by The Central Bank of Nigeria’s Banking and Payment Systems Department reporting that actual losses, as a result of fraud in bank transactions, dropped from N6.2 billion in 2014 to about N2.3 billion in 2015.

The NeFF Chairman and Director, Banking and Payments System, Central Bank of Nigeria, ‘Dipo Fatokun, at the third general meeting of the group with the theme: “Exploring New Protective Measures Against Social Engineering Vulnerabilities”, said that social engineering has become rife in cybercrime attacks in Nigeria.

“Almost on a daily basis, a plethora of messages are sent by these criminals with the express intent to con the unsuspecting recipient using techniques that appeal to vanity, greed or authority. It is therefore, important that we look critically at measures that will protect the industry as a whole from the menace of social engineering attacks,” he said.

Fatokun said that cyber criminals are not relenting in their efforts to defraud banks, customers and other organizations of values, as the world over, not just Nigeria, has been inundated with various news on their latest “Distributed Denial of Service” attacks.

Noting that the tripod on which Cybersecurity lies- people, processes and technology, are like links, he assured that NeFF would sustain consultations and collaborations to forge formidable link in the pursuit of Nigeria’s payments security.

In a proactive bid to further consolidate the positive trend and promote lasting solutions to mitigate financial fraud in Nigeria, Interswitch partnered with Tranwall, an international transaction security and control with a highly-skilled development team.

The initiative, which also involved Wema Bank, saw the launch of Wema Card Control in December 2015- a pioneering feature in the Nigerian market that allows cardholders to take control of their card security in a way that is customisable and easy to use.

The Divisional Chief Executive Officer of Interswitch Industry Vertical Markets, Mrs. Chinyere Don-Okhuofu, said: “At Interswitch, we fully understand the need for better security measures especially regarding card fraud.

“Tranwall’s technology is a perfect fit for our market, providing complete card base coverage, and support for both legacy feature phones and smartphones. We need partners with the right technology and resources as well as partners who are as committed to the cause of fraud eradication as we are.

“For us, Card control has been another outstanding rollout, deployed in record time. We are proud to continue to deliver and lead in the space of Card Control. We’ve seen a fantastic uptake in the technology and without question, Wema Bank has proven the value of Card Control for all stakeholders. We’re extremely proud to be partnering with Tranwall in implementing this ground-breaking initiative.”

The Head of e-Business at Wema Bank, Dele Adeyinka, said: “In launching Card Control, we wanted to deliver innovation that was secure, easy to use and would improve the customer experience.

“Since the implementation, we’ve seen a reduction of over 70 per cent in card fraud, an increase in card spend by over 50 per cent and positive growth in new customers of over 27 per cent. Interswitch and Tranwall promised to deliver and they did, and that’s not something you see often when rolling out new solutions.”

The implementation of Card Control by Interswitch heralds a new era for payment security in Nigeria, as it was the first time such safety measures were deployed in the country, thus empowering customers with the ability to secure their cards.

Cardholders in Wema bank for example use the WemaMobile Banking Suite (available on iPhone, Android, Blackberry and Windows Mobile), SMS or Internet banking to switch their cards ON or OFF, or to secure and control specific transaction types, such as Travel, Web purchases, In-store purchases or ATM withdrawals.

“Tranwall Transaction Control provides a richer and more customer-centric solution to banking customers, allowing cardholders to be part of fraud prevention by enabling them to secure their cards via their mobile phones.

“We are proud to be working with Interswitch in making payments more mobile, customer-centric and improving the cardholder security and experience in Nigeria,” the Chief Executive Officer of Tranwall, Aurelien Duarte, said.

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