The Central Bank of Nigeria (CBN) is collaborating with banking and payments industry groups to implement new anti-fraud measures for point-of-sale (POS) terminals. The goal is to curb the growing problem of fraudulent transactions being processed through agent banking locations.
The CBN-led Nigerian Electronic Fraud Forum is working with the Association of Mobile Money and Banking Agents of Nigeria (AMMBAN) to activate enhanced identity checks on POS devices. According to AMMBAN President Fasasi Sarafadeen Atanda, the groups are in advanced stages of rolling out the new safeguards.
“We are at a very advanced stage, and we’re about to finish the technology side of it in terms of activating some features,” Fasasi Sarafadeen Atanda, President of AMMBAN, said.
According to an exclusive report by Techcabal, when this feature is enabled, POS terminals will require additional customer KYC details before approving certain transactions deemed high-risk. The feature aims to flag potential fraud in real-time at the retail level. It follows reports that agent banking locations have sometimes been unwitting conduits for fraudulent transfers and payments.
However, industry experts note the primary issue is lack of proper customer identification tied to bank accounts and e-wallets. Tougher agent guidelines alone may be insufficient to stop criminals exploiting lax KYC practices.
Nonetheless, the CBN coalition hopes mandatory identity verification at POS terminals can significantly disrupt fraud networks. It coincides with a new policy requiring customers provide BVN or NIN when opening accounts.
The anti-fraud collaboration involves security agencies like the Nigerian police and DSS. But observers say more work is needed to ensure agents feel safe reporting suspicious transactions without repercussions.
Despite remaining challenges, the upcoming POS fraud feature demonstrates proactive coordination between the CBN, banking providers and payments companies to tackle e-fraud. The groups hope robust identity checks at the retail level will close loopholes currently being exploited.