CBN receives 2,051 fraud-related complaints in 6 months

Mr Haruna Mustafa of Consumer Protection Department of CBN, said this at the 2020 workshop for Finance Correspondents Association of Nigeria (FICAN) in Lagos.

Mustafa, represented by Mr Abubakar Albasu, consumer protection department, said the bank resolved 1,519 of the complaints and refunded N2, 671,280,409.42 and over 144 million dollars.

He said that a lot of fraudulent activities in the banks were being perpetrated by employees (insiders).

Mustafa, however, said that the first stage in the prevention of fraud in banks was to ensure a robust staff recruitment screening process.

He called for the development of a definitive fraud policy to deter mistakes that could lead to employees unwittingly aiding in fraud as well as a well-designed, implemented and communicated fraud prevention strategies.

He said that low financial literacy level was a challenge to effective consumer protection.

“COVID-19 has indeed brought us into an era of a `new normal’ which is continuously affecting the way we do things including banking and other financial services.

“Financial technology (fintech) is no doubt the way forward.

“However, policy makers, regulators and indeed entities that are interested in consumer welfare must make concerted and coordinated efforts at minimising the risks that fintech pose to consumers.

“We must invest in research to enable more and better understanding of fintech as we strive to promote innovation,’’ he explained.

Mustafa appealed to various financial institutions to adopt effective consumer protection, noting that the CBN was poised to ensuring a robust consumer protection.

Mr Bashir Nuhu, the NDIC Director of Communication and Public Affairs Department, urged banks to properly screen their employees to be sure of their identity before employment.