Nigeria’s CBN Mandates Stricter Reporting to Combat Rising Push Payment Fraud
The Central Bank of Nigeria (CBN) has introduced draft guidelines aimed squarely at tackling the growing issue of push payment fraud. As digital transactions become more prevalent across the country, the CBN notes a corresponding surge in this type of fraud, where individuals are tricked into authorising payments directly to criminals. This trend has led to substantial financial losses for both customers and financial institutions, prompting the new regulatory proposal to fortify the nation’s payment systems and protect consumers.
Strengthening Defences with New Reporting Channels
At the core of the draft rules is the mandate for all financial institutions to implement more robust preventive measures against push payment fraud. A key provision directs these institutions to establish comprehensive, round-the-clock reporting systems for customers who fall victim to scams. To ensure accessibility, these channels must include a wide range of options, such as dedicated social media handles, email addresses, in-app reporting features, and traditional in-person communication at branches. This multi-channel approach is designed to make it easier and faster for customers to report fraudulent incidents, enabling quicker action to be taken by the financial institution.
This latest initiative is part of a wider, concerted effort by the CBN to enhance security within Nigeria’s financial sector. The proposed rules on push payment fraud complement other recent regulatory actions, including the mandatory geotagging of Point of Sale (POS) terminals and the implementation of stricter operational restrictions on financial agents. By creating a more secure and responsive financial environment, the CBN aims to build greater trust and confidence in Nigeria’s rapidly expanding digital economy.
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