The FinTech Association of Nigeria (FintechNGR) has unveiled a strategic plan to combat the rising issue of fraud in digital payment channels. The association aims to implement a comprehensive fraud reporting framework to facilitate easy reporting of fraud cases while maintaining a balance between anti-fraud measures and privacy-regulatory concerns. FintechNGR emphasizes the critical nature of addressing fraud issues to safeguard Nigeria's esteemed digital ecosystem and plans to release the framework and technical standards in January 2024. This initiative has garnered strong support from financial institutions, fintech companies, and other stakeholders, demonstrating a collective commitment to enhancing the security of the banking and fintech communities.
February 4, 2024
-3 mins read
Chizitere
Content creator
FinTech Association of Nigeria (FintechNGR), a self-regulatory organization representing the collective interests of Fintech companies in Nigeria, has announced a strategic plan to combat the growing issue of fraud in digital payment channels.
The Chief Executive Officer’s Committee disclosed this in a statement signed by its Head of Projects and Relationships, Seun Folorunso. The plan FintechNGR hopes will combat this menace is a broad reporting framework that would enable the easy reporting of fraud cases.
Emphasizing a balance between anti-fraud measures and the privacy-regulatory landscape, the statement released by the association reiterated the critical nature of this endeavor, warning that unaddressed issues could jeopardize the esteemed digital ecosystem in Nigeria that has earned international acclaim.
Chairman of the CEO’s Committee, Uzoma Dozie, was quoted as saying; “We understand the delicate balance between safeguarding against fraudulent activities and respecting the privacy and regulatory frameworks that govern our industry. It’s not a trivial challenge, and the implications of missteps are significant. Following extensive consultations, the Committee is delighted to announce the identification of a robust framework for fraud reporting and risk mitigation. This innovative approach addresses the foundational issue of thwarting malicious actors without compromising privacy and regulatory compliance.”
FintechNGR plans to release the comprehensive fraud reporting framework along with its technical standards in January 2024.
Numerous financial institutions, fintech companies, and other significant stakeholders have shown strong support for this initiative, demonstrating a collective commitment to fortifying the security of the entire banking and fintech communities. This comes as there has been a parallel increase in online fraud as there has been with online payments.
In Q1 2023, cashless transactions in Nigeria surged by 44.84%, reaching N126.73tn. FITC reported a staggering 78,584 cases of electronic payment fraud in a year, particularly on channels like computer/web, mobile, and Point of Sales (POS). Notably, POS channels recorded over 10,098 fraud cases, involving N1.95bn, during the period between Q2 2022 and Q2 2023. The challenge of online fraud has become more complex as digital transactions continue to grow globally.
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