CBN refunds N66.5bn to bank customers

 

The Central Bank of Nigeria (CBN) said that it has resolved 13715 complaints resulting in the refund of N66.5 billion to banking customers.

Director Consumer Protection Department of the CBN, Mr S.K Salam- Alada who disclosed this in Benin said the department also returned $18.5 million €26319.03 and £9,085.98 to consumers.

He said that consumer protection was introduced to ensure that the financial health of financial institutions as well as creating public trust and confidence in the financial system.

He, however, said that with the use of modern technology in the financial industry there was increased in volume and value of transactions, and this has created dangerous challenges to consumers, exposing them to activities of fraudsters.

He stated that in 2017 alone 25043 cases of fraud were reported by Deposit Money Banks compared with 19531 cases recorded in the preceding year, representing an increase of 28 per cent.

He said though there was a 24 per cent reduction in actual fraud loss in 2017 compared to 2016, the amount lost to fraud amounted to N1.63 billion last year.

He pointed out that electronic transactions is projected to continue to increase nationally and globally as a result of broader ecosystem scope, evolution of channels, increased inclusion, evolving technologies and adaptability of disruption innovations/ modes of payment.

Highlighting the impact of e-fraud in the Nigeria’s economy, he said state actors are increasingly targeting financial infrastructure to undermine nation’s states, adding that e- fraud occur as a result of compromises in security ranging from weak authentication system to insufficient internal controls.

Salam-Alade expressed the need for financial industry to deploy cutting edge knowledge and competence against fraud especially in preventive measures, investment in technology solutions and effective communication of anti-fraud measures.

He said that fraud has direct impact on banks, stressing that apart from damaging their reputation, it brings national embarrassment, undermines the Nigerian payments system vision 2020 as well as eroding trust and confidence in the financial system.

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