Nigerian Journalist’s Shocking Experience Reveals Rising Trend of Electronic Fraud
Emmanuella Olofu, a journalist in Abuja, experienced a shocking incident when she tried to pay her taxi fare using her mobile banking app, only to find her savings depleted. Despite a friend’s attempt to send her money, which also disappeared, her bank has not resolved the issue.
This case is just one of many instances of fraudulent electronic transactions troubling Nigerians. According to Bashir Alhassan, the Director of Communications and Public Affairs at the Nigerian Deposit Insurance Corporation (NDIC), over 248 financial fraud-related complaints were lodged this year alone. However, the Nigeria Electronic Fraud Forum (NeFF) reported even higher numbers, with 11,716 cases in May 2020, causing a loss of N9.5 billion by June 2023.
While the NDIC claimed to have helped recover N8.3 billion from online fraud schemes in 2023, victims like Olofu criticized regulatory bodies like the Central Bank of Nigeria (CBN) for not assisting in recovering stolen funds. Many affected individuals have lost faith in online banking and payment services due to unresolved complaints.
The growth of fintech companies has enhanced financial inclusion in rural areas, but fraud remains a major setback. Victims like Michael Johnson, defrauded in an online transaction, found it challenging to resolve issues as most fintech companies operate mainly in Lagos.
High transaction charges are another obstacle to digital banking. Ali Muhammed, a beef seller, faces high charges for e-transfers, discouraging him from using digital payment services. Paul Omenka, a POS operator, also faces customer complaints about high transaction fees.
Despite the Nigerian Inter-Bank Settlement System’s (NIBSS) reduction of transaction charges, banks continue to impose fees, contributing to their substantial profits. Experts suggest that only the CBN can regulate these fees, but challenges like the cost of deploying telecommunications assets hinder such efforts.
Babatunde Obrimah, CEO of the FinTech Association of Nigeria, emphasizes the need to regulate transaction fees and combat fraud to promote a cashless economy. He suggests charging for cash transactions and reducing digital transaction costs.
In conclusion, addressing fraudulent transactions and high fees is crucial for Nigeria’s digital payment ecosystem. Industry experts call for effective regulation and innovative solutions to enhance financial inclusion and combat fraud.
Source: Premium Times
