CBN orders banks to keep database of fraudulent customers

Written by on October 20, 2017

The Central Bank of Nigeria ( CBN ) on Thursday directed banks to establish a database of their customers identified through their Bank Verification Numbers (BVNs) to be involved in confirmed fraudulent activities.

The directive is contained in the Regulatory Framework for Bank Verification Number (BVN) Operation and Watch-list for Nigerian Financial System released by the CBN. The implementation of the framework is with immediate effect.

CBN Director Banking & Payments System Dipo Fatokun, who signed the framework, said bank customers are to abide  by  the  regulatory  framework for  BVN  operations and  the watch-list for the Nigerian Banking Industry and also report all suspicious or unauthorised activities on their accounts.

Data from the CBN showed that Nigeria experienced a total of 3,500 cyber-attacks with 70 per cent success rate and loss of $450 million within the last one year mainly through cross channel fraud, data theft, email spooling, phishing, shoulder surfing and underground websites.

Although e-fraud rate in terms of value dropped by 63 per cent, after the BVN introduction and improved collaboration among banks via the fraud desks, the total fraud volume rose significantly by 683 per cent.

The new regulation is expected to assist the CBN to a great deal, in curbing the menace of fraudsters


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