CBN Calls for Proper Fraud Prevention Mechanism on Digital Financial Services

The Central Bank of Nigeria (CBN) has directed financial institutions and payment service providers to do more to enhance transparency and proper disclosure of Digital Financial Services (DFS) going forward.

The apex bank also mandated deposit money banks (DMBs), merchant banks, Other Financial Institutions (OFIs), Payment Service Banks (PSB) and other payment service institutions under its regulation to boost their fraud prevention and risk management capabilities by providing fraud prevention messages and tips for consumers using both audio and virtual modes of communication in local languages.

The central bank further directed the institutions to monitor fraud reports to identify emerging fraud issues and sensitise their customers on how they can protect their assets, following the growing threats to cybersecurity in recent times.

The bank disclosed this in its ‘Exposure Draft on Digital Financial Services Awareness Guidelines,’ which seeks to address gaps in consumer knowledge and practices with DFS as well as beef up the security of digital services.

The central bank noted that DFS has the potential to expand access to financial services for the Nigerian population and spur innovation in the financial services industry.
Source: Thisday