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Tag: cyber fraud

  • Fed govt moves to restore trust, end cyber fraud in banking sector

    Fed govt moves to restore trust, end cyber fraud in banking sector

    …new framework targets consumer confidence, financial inclusion

    In a renewed effort to tackle cyber fraud and rebuild public confidence in Nigeria’s financial system, the Federal Government has commenced the validation of a National Consumer Trust Framework aimed at deepening financial inclusion and restoring credibility to the banking sector.

    The initiative, led by the Presidential Committee on Economic and Financial Inclusion (PreCEFI), brought together key stakeholders at a workshop held on Monday at the Presidential Villa, Abuja.

    The goal is to harmonise efforts across regulatory agencies, financial institutions, and the judiciary to reduce distrust among Nigerians, especially the poor and vulnerable, who have grown wary of engaging with the formal banking system due to rising incidents of cybercrime and weak consumer protection.

    Speaking at the event, Technical Adviser to the President on Economic and Financial Inclusion, Dr. Nurudeen Abubakar Zauro, said President Bola Ahmed Tinubu’s Renewed Hope Agenda places financial inclusion at the centre of Nigeria’s economic recovery strategy.

    “If you look at the Renewed Hope Agenda, almost all eight priority areas touch on financial inclusion, especially access to capital and inclusivity. Every economically active Nigerian must not be left behind,” Dr. Zauro stated.

    He acknowledged that public anxiety over fraudulent schemes—commonly known as ‘419’—and ineffective complaint redress mechanisms have led to widespread mistrust in the banking sector.

    “For people to come into the formal financial sector, there must be confidence in the system. If you lose ₦1,000 at a POS, that may be worth ₦10 million to someone else. So restoring trust is key”, he said.

    Dr. Zauro said the national framework aims to replicate the trust-based governance model initiated by President Tinubu during his tenure as Lagos State Governor in 2004.

    “This is about building trust for the last man, the poor and vulnerable Nigerian. When someone sells cattle for ₦1 million, instead of hiding it under a pillow, they should be able to walk into a bank with confidence that their money is safe”, he said.

    He explained that the new framework will align existing efforts from the Central Bank of Nigeria (CBN), Federal Competition and Consumer Protection Commission (FCCPC), and other regulatory agencies into a single, unified national policy backed by all arms of government.

    Read Also: Immigration arrests 127 foreigners for cybercrime, irregular migration in Kano

    “We are harmonising all existing efforts—what the Central Bank is doing, what the regulators are doing, and what agencies like the FCCPC are doing. But more importantly, we want one unified national framework,” he said.

    Part of the effort, Dr. Zauro noted, involves ensuring judicial officers are financially literate and equipped to handle dispute resolution effectively.

    Also speaking with journalists on the sidelines of the workshop, Dr. Aisha Isa Olatiwoon, Director of Consumer Protection and Financial Inclusion at the CBN, reaffirmed the apex bank’s commitment to safeguarding consumer interests.

    “Customers must first escalate unresolved complaints to their banks. If there’s no resolution within the regulatory timeframe, or if the outcome is unsatisfactory, then they can escalate to the CBN,” she explained.

    Dr. Olatiwoon disclosed that the CBN is already operating a Customer Complaint Management Solution (CMS), and efforts are underway to integrate it into a broader Industry Dispute Resolution System.

    “We want a system where we can monitor in real time how banks are handling complaints and hold them accountable if they fall short. This is about transparency, accountability, and ensuring that every Nigerian feels safe banking”, she said.

    She emphasised that consumer protection, financial literacy, and inter-agency cooperation are critical to building trust in the financial system and achieving the broader goals of sustainable banking.

    Dr. Zauro stressed that the workshop was not just another policy roundtable but a concrete step toward implementation.

    “We’re not just talking. The national framework will be formally issued and, if necessary, backed by legislation. Mr. President is ready to do all that is needed to restore confidence”, he said.

    He added that restoring trust in the financial system is key to unlocking opportunities within the African Continental Free Trade Area (AfCFTA) and propelling Nigeria toward its goal of becoming a $1 trillion economy by 2030.

    The National Framework on Strengthening Trust for Financial Inclusion is expected to be officially launched by the Central Bank of Nigeria in the coming weeks.

    Once adopted, it will serve as the central policy reference for regulators, financial service providers, and lawmakers in fostering a secure, inclusive, and trusted financial environment for all Nigerians.

  • Nigerian extradited to US from Ghana over $6m cyber fraud

    Nigerian extradited to US from Ghana over $6m cyber fraud

    A Nigerian man appeared in Nebraska court in the US during the week to face charges of conspiracy to commit wire fraud.

    Abiola Kayode, 37, was extradited to Nebraska from Ghana to face charges. U.S. Magistrate Judge Michael D. Nelson ordered Kayode to remain in jail until his next court appearance, according to documents.

    Kayode was on the ‘FBIs Most Wanted Cyber Criminal List at the time of his arrest in April 223. He then surrendered and was brought to Bebraska.

    Authorities said that he provided bank information from victims who were directed via fraudulent emails to wire money to accounts he and others controlled. Most of the victims were preyed upon using internet romance scams.

    An indictment was filed in August 2019 in Omaha, according to the documents.

    Authorities allege that he was part of a scheme from January 2015 to September 2016 which defrauded Nebraska businesses of more than $6 million.

    “Four years ago, we identified six Nigerian nationals suspected of defrauding individual victims and businesses in Nebraska and other states of millions of dollars,” FBI Omaha Special Agent in Charge Eugene Kowel said in a news release.

    “Today, Abiola Kayode is the second of those co-conspirators to be extradited to stand trial in Nebraska.”

    The indictment shows that suspects posed as the CEO, president, owner, and other executives of the company. Those receiving emails from the group were tricked into completing wire transfers.

    “Using e-mail accounts spoofed to make it appear as though they were from the company’s true business executive, Kayode’s co-conspirators directed business employees or recipients of the e-mail to complete wire transfers,” the release states.

    Read Also: How to curtail cyber fraud, by experts

    Authorities believe that Kayode provided bank account information that largely belonged to victims of internet romance scams, according to documents.

    Three others involved in the scam have already been convicted and sentenced, the release states.

    Alex Ogunshakin was also extradited from Nigeria. He provided bank accounts for the scheme, and was sentenced to 45 months in prison in October 2024.

    Onome Ijomone was extradited from Poland. He acted as a romance scammer, and was sentenced in January 2020 to 60 months in prison and ordered to pay $508,934.40 in restitution.

    Pelumi Fawehinimi, who facilitated the bank accounts, was sentenced in March 2019 to 72 months in prison and ordered to pay $1,014,159.60 in restitution.

    Adewale Aniyeloye, who sent spoofed e-mails to the target business, was sentenced in February 2019 to 96 months in prison and ordered to pay $1,570,938.05 in restitution.

    “Other co-conspirators remain at large,” the U.S. Attorney’s Office said in the update.

    The case has been investigated by the FBI as well as the Office of the Attorney General and Ministry of Justice, the Ghana Police Service, Interpol, and the Ghana Immigration Service. The DOJ Office of International Affairs assisted in the extradition.

  • How to curtail cyber fraud, by experts

    How to curtail cyber fraud, by experts

    Rising fraud incidents in Nigeria can sometimes be due to poor digital and financial literacy, but most especially the failure of many victims to report an attack, a fintech firm, PalmPay, has said.

    While fintech companies play a role in protecting users from cyber fraud, the rising fraud incidents in the country can sometimes be due to poor digital and financial literacy, but most especially the failure of many victims to report an attack, the company added.

    In a report last year, Head of IT and Payments, PalmPay, Temitayo Oduwole, observed that customers do not take prompt action in incidents of fraud and that “only 33 per cent report the same day or take the necessary right action on the same day”.

    Effective investigation into incidents of fraud begins when the user reports to their bank that fraud has occurred. However, fraud, if not reported within the hour the crime occurred, allows criminals to move the stolen funds to ‘safe’ places.

    Oduwole, therefore, urged victims of cyber frauds to quickly lodge complaints to take prompt action.

    Also, an anti-fraud expert, Tosin Adenekan, said precaution remained the best remedy to protect oneself from cyber fraud. She warned fintech users against trusting strangers with their personal information when performing digital transactions.

    Mrs Adenekan said: “Users of fintech platforms owe it to themselves to follow standard safety precautions to avoid being defrauded by cyber criminals.’’

    “Do not allow strangers such as PoS operators to handle personal ATM cards. This is because cybercriminals often posing as helpful PoS operators can exploit this to observe PIN entries and distract card owners, ultimately swapping ATM cards.”

    She urged fintech users to take steps to reduce incidents of fraud on their wallets by creating strong passwords, enabling the two-factor authentication features on their fintech app, monitoring their wallets for unauthorised transactions, and protecting their personal login information when in public from prying eyes.

    Other steps to take include “regularly updating their apps, setting limits for their wallets, staying alert for phishing attempts, getting the proper financial education, using secure internet connection, being aware of pop-ups and fraudulent emails, and ensuring that operating systems and internet connections are up to date.”

    To prevent falling victim to cyber fraud, Mrs Adenekan urged fintech users to adhere to these safety guidelines and “don’t trust everything on the internet.”

    The financial inclusion rate in Nigeria has improved. Since the country adopted an inclusion strategy in 2012, adult Nigerians with a bank account have increased, and now account for more than two-thirds of the financially included.

    According to the 2023 Report on Access to Financial Services in Nigeria, financial inclusion continues to expand and has so far been fuelled by marginal growth among the country’s banked population and major gains in non-bank formal adoption.

    Although approximately 40 million adult Nigerians remain formally excluded, formal financial inclusion was said to have grown from 56per cent in 2020 to 64per cent in 2023.

    In the last four years, fintech companies in the country have played a vital role in closing this gap, bringing financial services to the country’s unbanked and driving economic growth. Their successes, however, have not come without challenges.

    Following the penetration of digital payment platforms in Africa, a fraud epidemic has plagued the fintech ecosystem in Nigeria, with Mobile, Web and PoS being the most exploited channels by fraudsters in the country in 2023.

    According to the 2023 NIBSS Annual Fraud Landscape report, incidents of “Fraud loss via Internet Banking increased by 325 per cent between 2022 and 2023.”

    The rise of digital payment platforms in Nigeria has increased the potential for cyber fraud, with fintech companies now forced to balance between making payment apps user-friendly and prioritising users’ safety to stem increased cyber fraud.

    To address the fraud epidemic, the Fintech Association of Nigeria (FintechNGR) plans to unveil a fraud reporting framework sometime this year, while fintech platforms such as PalmPay continue to take the initiative to reevaluate their in-app safety features to protect their users from the activities of fraudsters.

    Since launching in Nigeria in 2019 under a Mobile Money Operator (MMO) licence by CBN, PalmPay has grown to over 30 million users as part of its payment ecosystem.

    Read Also: Police arrest couple over N51m cyber fraud

    In building a user-friendly app, PalmPay has also sought to foster a secure financial ecosystem by integrating safety features into its app so that the millions of users who transact with the app do so in a safe and trusted environment.

    In general, PalmPay said it employs a closed-loop risk management system that involves continuous monitoring, analysis and response to fraud threats and allows it to detect and prevent security risks in real-time and reduce the potential impact of fraud.

    In particular, to reduce incidents of fraud, protect their users from fraudsters, and provide a safe banking environment, PalmPay said it binds their users’ phones to the app and has an auto-logout and biometrics feature to confirm users’ identity.

    Speaking on safety measures, Managing Director, PalmPay, Chika Nwosu, said the reason why the fintech platform has witnessed growth in four years was because “We prioritise the safety and security of our users.” He said the firm been able to achieve this by marrying security and safety with the customer experience to create a balance.

    Because it understands that curtailing fraud is a two-way street, PalmPay runs a Wallet Safety Workshop to teach users of its app and point of sale (PoS) machines various security topics covering payment security and common security issues in daily life, such as password management, fraud detection, phishing and risk identification.

    The safety workshop underscores PalmPay’s understanding of user security as an important part of curtailing fraud and encourages its users to ensure that they always secure their wallets using the several built-in safety features in its app.

    A recent example was a series of campaigns encouraging its users to link their wallets with their BVN or NIN, following the directive by the Central Bank of Nigeria (CBN) for users of fintech platforms to link their wallets with their BVN or NIN.

    To encourage the users to meet the CBN deadline of January 31, 2024, PalmPay said it has introduced an incentive payment system where up to N500 was paid to users who got ahead of the deadline and validated their wallet information.

    “PalmPay users have several options for protecting themselves against fraudsters such as the two-factor verification process that makes it difficult for fraudsters to gain access to users’ apps without spooking them.  In the first half of 2023, millions of users linked their secure email addresses to their PalmPay app. With this feature, PalmPay users effortlessly receive OTPs for their in-app login.

    “The PalmPay app has a device management feature that allows users to manage trusted devices and remove untrusted devices. When logging in on an untrusted device, users complete a comprehensive security verification process that involves inputting an OTP and their PIN to ensure security,” Nwosu said.