How to reduce e-banking frauds in Nigeria, by don

A professor of Business Management at the Ladoke Akintola University of Technology and immediate past Head of Department of Management and Accounting, Abiola Idowu, has suggested ways of reducing the upsurge in E-banking fraud in Nigeria.

The don made the submission at the 51st Inaugural Lecture of Ladoke Akintola University of Technology (LAUTECH), Ogbomoso, Oyo State where she spoke on the theme: “Digital Revolution and E-banking Fraud in Nigeria: Perspectives and Contours of Management Control Function.”

The don said the National Assembly should propose relevant bills such as Cyber Security and Information Protection Bill and Electronic Transactions Protection Bill that could eliminate or reduce electronic fraud to the barest minimum.

The professor advised the Central Bank of Nigeria (CBN) to issue operative guidelines the already in use, to be reviewed to regulate e-banking services in such a way that suspicious transactions could be reported seamlessly to its financial intelligence.

She added that the banks should be mandated to deploy advanced tools and technology, which could adequately protect customers against falling prey to fraudsters, considering the overreliance on telecoms service providers for basic services.

The inaugural lecturer called for urgent provision of automated analysis tools that could identify and report fraud attempts in a timely manner.

She also called for deployment of deep learning by managements of banks.

Idowu said: “Deep Learning is a new approach to machine learning and artificial intelligence which are good at identifying complex patterns and characteristics of cybercrime and online fraud.”

She went on: “There is an urgent need to review the internal audit functions of banks to include fraud risk analysis and management, while the internal control mechanism should be strengthened through adequate investment in training of staff in cyber security, online audit fraud detection and management.

“There should be regular rotation of bank employees to frustrate collaborative fraud. The regulatory institutions and banks should organise workshops, seminars and public lectures for bank customers on how to escape various e-banking frauds. The banking industry should review the existing Bank Verification Number (BVN) framework with the introduction of BVN watch list.”