Cashless economy unsustainable without data security – NIBSS

The objective of the central bank of Nigeria (CBN) in ensuring that Nigeria’s economy becomes cashless will be jeopardized if strong data security is not put in place to check fraud.

“Cashless policy objectives of CBN will be difficult to achieve if proper data security are not in place,” Olufemi Fadairo, head, Industrial Security services of Nigeria Interbank Settlement system plc. (NIBSS) said at the seminal organized by Lagos chamber of commerce on the role of ICT in a cashless economy.

According to him, many people are not embracing cashless policy today because of the fair that they will be defrauded.

“The reported fraud case in Nigeria through electronic channel alone in 2014 is N6 billion based on NIBSS data,” Fadairo said.

“The money is moving to electronic channel now so therefore the fraudsters are moving to electronic channel as well,” he further said.

When people started being defrauded through electronic channel, people will not embrace cash less economy, he noted.

He however advised the audience at the seminar to be security conscious of their cards and mobile phone through which they carry out their financial transactions.

“Disclosing your cards expose you to the risk of being defrauded because seeing your card number alone without knowing your pin is enough for the fraudster,” he said.

He made mention of benefit of cashless economy which includes Increased convenience, revenue leakages becomes lower, enhance tax collection, reduce bullion van attack, financial inclusion to mention a few.

Also speaking at the event, Zakari Usman, Chairman of the ICT group of the chamber, during its opening remarks said to achieve cashless economy in Nigeria all hand has to be on deck.

“As we all know, it is the financial houses that do the calculation and computation of the cash lodgements and disbursement, but the pipe through which the actual cashless economy is driven the world over is provided and sustained by the players in the ICT sector of the economy,” Zakari said.

 

ADEBISI NOFIU