• Saturday, June 22, 2024
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Tech experts canvass improved cyber security to optimise CBN’s cashless policy


Technology experts have urged stakeholders in the financial industry to invest and build a well-secured channel for online financial transactions to encourage and fully optimise the Central Bank of Nigeria’s cashless policy

Speaking at the Channels TV Business Morning on Friday, Charles Nwodo, chairman, XL Africa Group, said the cashless policy was borne out of the Central Bank of Nigeria (CBN)’s intention to end the challenges around financial transactions and promote financial inclusion. “On the digital space and mobile payment platforms, it is easy to manipulate large amounts of value. As a result, the impact of fraud on these platforms is huge and this is why many people still prefer to retain cash,” Nwodo said.

The cashless policy aims to encourage the consistent use of electronic platforms for financial transactions, including the payment of goods and services. It is also targeted at closing the financial exclusion gap in the country. The cashless policy ensures minimal physical contact as safety precautions take front burner on coronavirus concerns. However, fraud is commonplace on the Internet, with banks losing N15 billion to fraud and cybercrime in 2019.

Destiny Amana, president, Nigeria Internet Group, said that although banks and Fintechs have made efforts to eliminate the possibility of fraud through a constant update of software and the use of a two- step verification process to establish a secured transaction, more needs to be done, especially on the part of customers and business owners .

“For business websites, especially the retailers, it is necessary to have a safe and secured website. When you are creating a site that will request financial or personal information, it is advisable to have a padlock on the website, which is the SSL security certificate. Moreover, clients are more inclined to trust secured websites requesting financial information,” Amana said.

He advised that leveraging traditional control mechanisms is not fair enough, urging businesses to adopt a more digital platform and also invest in heavily securing websites.

Abumere Igboa, chairman, Committee of Chief Information Security Officers (CISO), advised individuals that the trend has changed overtime and sensitive information is now a tool for cybercrimes. Igboa said all forms of sensitive information should be secured.

“Data and information are key in online financial transaction, and this is what many cyber criminals use to carryout fraudulent activities. Therefore, individuals need to secure their details in order to avoid being defrauded,” Igboa further said.

He explained that insider threat is one of the major issues taken into consideration when trying to develop solutions to mitigating cybercrimes.

“There are scenarios where syndicates worked with internal staff members of financial institutions to defraud customers. Banks need to train their staff members and make them understand that they are simply being used and exploited as they end up taking the fall for those issues when investigations are carried out,” Igboa said.