SAN FRANCISCO, October 21, (THEWILL) – The Central Bank of Nigeria (CBN) said it received 2,051 frauds, ATM cards, electronic transactions, and excess charges related complaints from bank customers between January and June.
Mr. Haruna Mustafa of the Consumer Protection Department of CBN said this at the 2020 workshop for the Finance Correspondents Association of Nigeria (FICAN) in Lagos.
Represented by Mr. Abubakar Albasu, consumer protection department, Mustafa said the bank resolved 1,519 of the complaints and refunded N2, 671,280,409.42, and over 144 million dollars.
He reveled that a lot of fraudulent activities in the banks were being perpetrated by employees (insiders) adding that the first stage in the prevention of fraud in banks was to ensure a robust staff recruitment screening process.
He called for the development of a definitive fraud policy to deter mistakes that could lead to employees unwittingly aiding in fraud as well as well-designed, implemented, and communicated fraud prevention strategies.
He said that low financial literacy level was a challenge to effective consumer protection.
“COVID-19 has indeed brought us into an era of a `new normal’ which is continuously affecting the way we do things including banking and other financial services.
“Financial technology (fintech) is no doubt the way forward.
“However, policymakers, regulators, and indeed entities that are interested in consumer welfare must make concerted and coordinated efforts at minimising the risks that fintech poses to consumers.
“We must invest in research to enable more and better understanding of fintech as we strive to promote innovation,’’ he explained.
