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Cash Policy - CBN Strengthens Fraud Prevention Committee
Feb 13, 2012 (This Day/All Africa Global Media via COMTEX) --
As part of efforts to ensure that the new cash policy succeeds, the Central Bank of Nigeria (CBN) has said its Automated Teller Machine (ATM) Fraud Prevention Committee had been empowered to address risks associated with use of alternative e-payment channels.
The members of the committee include banks, the Economic and Financial Crimes Commission (EFCC), National Identity Management Commission (NIMC), Interswitch and Valucard. They meet monthly to make e-payment more secured for bank customers.
A statement from the Bankers' Committee at the weekend, said the move became imperative to address card frauds, especially the ones associated with the use of ATMs and Point of Sale (PoS) terminals. It noted that ATM fraud was prevalent when magnetic strip cards were in use.
Nigerian banks had migrated their cards to chip and Personal Identification (PIN) technology, which is more secured and that had drastically reduced the fraud level in the industry. Besides, biometrics was being installed in some ATMs and PoS to further check fraud in the industry.
The statement explained: "In terms of security of platforms, it said that ATM fraud was prevalent when Nigeria was using magnetic stripe cards. But last year, Nigeria migrated, all their cards to chip and PIN, which is more secured, and drastically reduced the fraud level. With chip and PIN, the chances of fraud are reduced provided a customer keeps his PIN secret."
The committee pointed out that the apex bank had equally set a standard for operators in the electronic banking system to ensure seamless operations. The committee disclosed that the literacy required in operating the PoS was minimal as many Nigerians could use a mobile phone needed to make mobile payments.
"Mobile credit can be sold through the terminals, or it can used to collect bill payment for firms such as the Power Holding Company of Nigeria (PHCN). Also training will be provided by the acquirer's payment terminal service provider (PTSP). Part of the deployment process is to ensure a practical training of how to use the PoS for the merchant and their staff," it added.
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