Nigerian mobile money and banking agents are joining forces with the Central Bank of Nigeria (CBN) to roll out a groundbreaking new feature aimed at curbing Point-of-Sale (PoS) fraud at agent locations. The initiative, being developed in collaboration with the Nigerian Electronic Fraud Forum (NeFF) and the Nigerian Interbank Settlement System (NIBSS), promises to flag suspicious transactions through enhanced KYC (Know Your Customer) checks before completion.
“We’re nearing completion on the technical side of things, and we’re ready to activate some key features soon,” said Fasasi Sarafadeen Atanda, President of the Association of Mobile Money and Banking Agents of Nigeria (AMMBAN). He also commended NIBSS for its instrumental role in driving the project forward.
Lilian Phido, Head of Corporate Communications at NIBSS, explained that the Nigerian Electronic Fraud Forum was established precisely to foster collaborative industry-wide efforts against cybercrime. "This platform, consisting of all key stakeholders, allows us to proactively safeguard the integrity of our nationwide payment systems,” she emphasized.
The upcoming feature will be prominently displayed on PoS terminals used by AMMBAN’s network of agents across the country. Following a recent meeting with NIBSS, the launch is expected sometime within the first quarter of 2024.
Another crucial aspect of the initiative involves a security coalition comprising the Nigerian police, Department of State Services (DSS), AMMBAN, and NIBSS. This collaboration aims to simplify the tracking of fraudsters operating at agent locations and potentially establish a unified identification system for AMMBAN's expansive network of over 1.7 million agents.
However, not everyone agrees on the best approach. Femi Omegbenigun, CEO of Nigerian payments company 3Line Card, argues that tackling the root of the problem requires addressing fraudulent account and wallet creation. “Weak KYC procedures at the account level leave agents unknowingly facilitating transactions involving ill-gotten funds,” he pointed out.
Furthermore, AMMBAN President Atanda acknowledged the need for better utilization of existing whistleblowing channels. He highlighted instances where agents reported suspicious transactions to both banks and security agencies, only to be met with inaction or demands for financial incentives. “This discourages agents from speaking up for fear of wasting time and resources,” he shared.
In the meantime, AMMBAN has proactively begun implementing the CBN’s BVN-NIN policy, requiring new customers to present either a Bank Verification Number (BVN) or National Identification Number (NIN) when opening accounts.
This multi-pronged approach, combining technological innovation, improved agent identification, and stronger reporting mechanisms, holds promise for significantly reducing PoS fraud in Nigeria. The successful implementation of these initiatives would not only empower mobile money and banking agents but also enhance the overall safety and security of the country’s financial ecosystem.
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