CBN links cashless policy to increased electronic banking risks

The Central Bank of Nigeria (CBN), on Wednesday, said the implementation of the cashless policy aimed at promoting financial inclusion had increased the risks associated with electronic banking in the country.
Mr Hassan Bello, the CBN Director, Banking Supervision Department said this at the First Bank of Nigeria Information Security webinar.
The webinar was convened to enlighten the public on essential ways to protect their information against unauthorised access, disruptions, monitoring and alteration.
Bello said the cashless policy issued to drive the development and modernisation of the payment system, reduce the cost of banking services and promote financial inclusion amongst others had increased the risks associated with electronic banking.
He called for an enhanced security measures on all electronic delivery channels to minimise the loss of customers’ funds.
Bello described cybersecurity as the practice of protecting systems, networks, and programmes from digital attacks.
He said that cyberattacks were usually aimed at accessing, changing or destroying sensitive information; extorting money from users or interrupting normal business processes.
Bello represented by Dr Adetona Adedeji, said that the impact of fraud on customers include loss of confidence in the financial system; monetary loss and negative perception of bank’s security system.
He said that some of the methods used to get customers information to perpetrate fraud include phishing, vishing, smashing, pharming, spoofing and social engineering.
“Implementing effective cybersecutity measures is particularly challenging today because there are several devices out there and attackers are becoming more innovative,” Bello said.
Speaking on “The role of CBN in Cyber security and cyber fraud prevention in deposit money banks’’, Bello urged customers to monitor their accounts regularly and report unusual activities and balance to their banks.
He called on customers to avoid sharing personal information with unknown persons or businesses.
“Be aware that your bank will never ask for your information online or via telephone.
“Any offer asking you to supply your confidential details like card numbers and passwordnon line is a scam,” Bello said.
He assured that the CBN would continue to collaborate with banks to address the increasing threats from cyber-attacks with the aim of improving their cybersecurity resilience whilst managing cyber risks.
Bello said that the requirement for banks to comply with the CBN two-factor authentication requirements on all e-products and enabling customers to truncate all electronic channel transactions were measures put in place to reduce cyber fraud.
Mr Harrison Nnaji, FirstBank Head Information Security Operations called on customers not to share sensitive and personal data with third party.
Nnaji said that customers needed to be smart to avoid falling prey by avoiding sharing sensitive document in the public.
He said that customers should be mindful of what they shared on social media such as Instagram, Facebook and LinkedIn, among others.
Nnaji said that no bank would request for personal information for a transaction to be completed.
Mr Obinna Mbagwu, FirstBank Head IT Control and Enhancement said that cybersecurity awareness for customers should be done regularly to boost enlightenment.
Mbagwu said that customers should avoid unsolicited SMS, emails and phone calls.
Dr Obadare Adewale, the Managing Director, Digital Encode Ltd., said that customers must have cybersecurity intelligence quotient to avoid cyber fraud.
Adewale said that any transaction, anything or call that causes fear, uncertainty and doubt must be avoided by customers.
According to him, customers should not entertain anything that is asking for full disclosure.