* . *
  • About
  • Advertise
  • Privacy & Policy
  • Contact
Saturday, May 10, 2025
Earth-News
  • Home
  • Business
  • Entertainment
    The Weeknd made the apocalypse sexy at his 2025 tour launch in Arizona – Yahoo

    The Weeknd Turns Up the Heat at His 2025 Tour Launch in Arizona!

    Flutter Entertainment eyes U.S. prediction markets amid growing interest – Sports Business Journal

    Flutter Entertainment Sets Its Sights on U.S. Prediction Markets as Interest Soars

    SXSW Rom-Com ‘I Really Love My Husband’ Acquired for U.S. Release – Variety

    Heartfelt Romance: ‘I Really Love My Husband’ Set to Captivate U.S. Audiences!

    Georgia Entertainment CEO says large-scale production is slowing down – Decaturish

    Georgia Entertainment CEO Warns of Slowdown in Large-Scale Productions

    Zugalu Entertainment Welcomes Crimson Herring Studios to Its Family!

    Fall 2025 TV Schedule: Your Guide to the Complete Lineup – Wyoming News Now

    Get Ready for Fall 2025: Your Ultimate Guide to the Exciting TV Lineup!

  • General
  • Health
  • News

    Cracking the Code: Why China’s Economic Challenges Aren’t Shaking Markets, Unlike America’s” – Bloomberg

    Trump’s Narrow Window to Spread the Truth About Harris

    Trump’s Narrow Window to Spread the Truth About Harris

    Israel-Gaza war live updates: Hamas leader Ismail Haniyeh assassinated in Iran, group says

    Israel-Gaza war live updates: Hamas leader Ismail Haniyeh assassinated in Iran, group says

    PAP Boss to Niger Delta Youths, Stay Away from the Protest

    PAP Boss to Niger Delta Youths, Stay Away from the Protest

    Court Restricts Protests In Lagos To Freedom, Peace Park

    Court Restricts Protests In Lagos To Freedom, Peace Park

    Fans React to Jazz Jennings’ Inspiring Weight Loss Journey

    Fans React to Jazz Jennings’ Inspiring Weight Loss Journey

    Trending Tags

    • Trump Inauguration
    • United Stated
    • White House
    • Market Stories
    • Election Results
  • Science
  • Sports
  • Technology
    Comings and goings: MPT hires VP of technology, NPR announces changes to Business Desk – Current – For people in public media

    Exciting Leadership Changes: MPT Welcomes New VP of Technology and NPR Revamps Business Desk!

    Harnessing emerging technologies to power a small business – The Oaklandside

    Unlocking Success: How Emerging Technologies Can Transform Your Small Business

    Artificial intelligence (AI) – The Guardian

    Unlocking the Future: How Artificial Intelligence is Transforming Our World

    Technology Innovation to Take Center Stage at The 2025 National Restaurant Association Show – Restaurant Technology News

    Get Ready for a Tech Revolution: The 2025 National Restaurant Association Show Unveils Cutting-Edge Innovations!

    Newmont signs deal to use Chrysos Corporation technology – Capital Brief

    Newmont Partners with Chrysos Corporation to Revolutionize Mining Technology

    Air Force Invests in Whisper’s Ultraquiet Propulsion Technology – FLYING Magazine

    Air Force Invests in Whisper’s Ultraquiet Propulsion Technology – FLYING Magazine

    Trending Tags

    • Nintendo Switch
    • CES 2017
    • Playstation 4 Pro
    • Mark Zuckerberg
No Result
View All Result
  • Home
  • Business
  • Entertainment
    The Weeknd made the apocalypse sexy at his 2025 tour launch in Arizona – Yahoo

    The Weeknd Turns Up the Heat at His 2025 Tour Launch in Arizona!

    Flutter Entertainment eyes U.S. prediction markets amid growing interest – Sports Business Journal

    Flutter Entertainment Sets Its Sights on U.S. Prediction Markets as Interest Soars

    SXSW Rom-Com ‘I Really Love My Husband’ Acquired for U.S. Release – Variety

    Heartfelt Romance: ‘I Really Love My Husband’ Set to Captivate U.S. Audiences!

    Georgia Entertainment CEO says large-scale production is slowing down – Decaturish

    Georgia Entertainment CEO Warns of Slowdown in Large-Scale Productions

    Zugalu Entertainment Welcomes Crimson Herring Studios to Its Family!

    Fall 2025 TV Schedule: Your Guide to the Complete Lineup – Wyoming News Now

    Get Ready for Fall 2025: Your Ultimate Guide to the Exciting TV Lineup!

  • General
  • Health
  • News

    Cracking the Code: Why China’s Economic Challenges Aren’t Shaking Markets, Unlike America’s” – Bloomberg

    Trump’s Narrow Window to Spread the Truth About Harris

    Trump’s Narrow Window to Spread the Truth About Harris

    Israel-Gaza war live updates: Hamas leader Ismail Haniyeh assassinated in Iran, group says

    Israel-Gaza war live updates: Hamas leader Ismail Haniyeh assassinated in Iran, group says

    PAP Boss to Niger Delta Youths, Stay Away from the Protest

    PAP Boss to Niger Delta Youths, Stay Away from the Protest

    Court Restricts Protests In Lagos To Freedom, Peace Park

    Court Restricts Protests In Lagos To Freedom, Peace Park

    Fans React to Jazz Jennings’ Inspiring Weight Loss Journey

    Fans React to Jazz Jennings’ Inspiring Weight Loss Journey

    Trending Tags

    • Trump Inauguration
    • United Stated
    • White House
    • Market Stories
    • Election Results
  • Science
  • Sports
  • Technology
    Comings and goings: MPT hires VP of technology, NPR announces changes to Business Desk – Current – For people in public media

    Exciting Leadership Changes: MPT Welcomes New VP of Technology and NPR Revamps Business Desk!

    Harnessing emerging technologies to power a small business – The Oaklandside

    Unlocking Success: How Emerging Technologies Can Transform Your Small Business

    Artificial intelligence (AI) – The Guardian

    Unlocking the Future: How Artificial Intelligence is Transforming Our World

    Technology Innovation to Take Center Stage at The 2025 National Restaurant Association Show – Restaurant Technology News

    Get Ready for a Tech Revolution: The 2025 National Restaurant Association Show Unveils Cutting-Edge Innovations!

    Newmont signs deal to use Chrysos Corporation technology – Capital Brief

    Newmont Partners with Chrysos Corporation to Revolutionize Mining Technology

    Air Force Invests in Whisper’s Ultraquiet Propulsion Technology – FLYING Magazine

    Air Force Invests in Whisper’s Ultraquiet Propulsion Technology – FLYING Magazine

    Trending Tags

    • Nintendo Switch
    • CES 2017
    • Playstation 4 Pro
    • Mark Zuckerberg
No Result
View All Result
Earth-News
No Result
View All Result
Home Technology

Wracked by fraud, fintechs and banks must work together or fall

June 7, 2024
in Technology
Wracked by fraud, fintechs and banks must work together or fall
Share on FacebookShare on Twitter

Despite a decline in fraud incidents in Q1 2024, financial industry players agree fraud is an existential challenge. 

Traditional banks and fintechs have historically fought fraud through internal controls, strengthening security infrastructure, and having adequate information on customers (KYC processes). Banks also share information among themselves, helping them identify and restrict the accounts of bad actors pending investigation. Fintechs have tried to replicate this information sharing but have failed. 

In March 2023, fintechs, led by Flutterwave, began talks to create a fraud database, codenamed Project Radar, to share data on individuals and groups that had attempted or made fraudulent transactions. But the fintechs, hawkish about their data and ultracompetitive, did not make much progress with those talks.

Another industry collaboration to fight PoS fraud, a popular channel for bad actors is still in its early days. However, a decision mandating mobile banking agents to register with the Corporate Affairs Commission (CAC) is expected to increase transparency. 

If financial institutions are learning to fly without perching, bad actors are learning to shoot without missing. The consensus is that an industry-wide response is required.

“It goes back to KYC and customer due diligence,” said Adedeji Olowe, founder of Lendsqr, a lending-as-a-service startup. “There is literally nothing new anyone is supposed to do.”

Section 7(2)(b) of the CBN Customer Due Diligence Regulations 2023 mandates financial institutions to physically verify the residential address of customers. Until recently, only traditional banks have followed this directive. The CBN began mandating fintechs to follow the same rules in May. 

Those KYC processes, which are now being tightened and applied across board, are at the heart of a dispute between banks and fintechs.  In April, Wema Bank removed seven fintech partners from its payment gateway platform over fraudulent activities after reporting ₦685 million ($594,943) in fraud and forgery losses in 2023. Fidelity Bank also briefly blocked some neobanks over fraud concerns in 2023, although such heavy-handed measures are likely frowned on by the regulator. 

Nevertheless, banks and fintechs must sheathe their swords and collaborate to fight fraud. One such strategy in that fight is data sharing. 

“I think the ecosystem is ripe for a central repository where everybody can share data. Just the way the banks themselves came up with BVN before the regulator stepped in. The entire financial industry needs something similar to tackle fraud,” said Lanre Ogungbe, co-founder of Identitypass, a Nigerian identity verification company.

Data sharing has been discussed since at least 2018, possibly earlier, with little to show for it. The growing complexity of fraud has made it more important than ever. 

Financial Institutions (FIs) are part of the Nigeria Electronic Fraud Forum (NEFF), a CBN initiative where they report fraud incidents and provide relevant information on the nature of the fraud, but data sharing isn’t part of the arrangement.

The argument for a central repository is that banks and fintechs can share data on customers who trigger fraud flags and make that data accessible to all participants. 

One industry insider narrated how a former employee of a traditional bank sacked for fraud got hired by a fintech startup six months later.

“Everyone must come together to fight fraud because it’s really becoming a pandemic,” said Babatunde Obrimah, chief operating officer of the Fintech Association of Nigeria, an industry lobby group. 

Yet, quite a few people are skeptical about any collaboration. “I don’t see collaboration happening because there is this aversion to sharing data. If every stakeholder is doing what they are supposed to do, fighting fraud will be much easier,” Olowe said.

Obrimah said the Fintech Association of Nigeria is developing a black book where fintechs can drop details of bank accounts that have been involved in fraud to blacklist transactions from such accounts.

Taking fraud more seriously will also include setting fraud desks and timely disclosure of fraud incidents, Damilola Adeyi, a fraud expert told TechCabal. 

“A lot of financial institutions don’t see fraud as an integral part of their operations. You can’t eradicate fraud but you can mitigate it,” he said. 

In 2015, the CBN mandated all deposit money banks, mobile money operators, switches, and all payment service providers to establish a fraud desk to receive and respond promptly to fraud alerts. But most fintechs are non-compliant because the CBN has failed to enforce the directive, one industry insider claimed. 

An executive at Moniepoint confirmed the company has a fraud desk that handles transaction monitoring and behavioral analysis, fraud detection and reporting, and investigation with law enforcement agencies. 

Yet, financial institutions are paranoid about fraud reporting and believe disclosures could cost them customer trust. At least 63% of the financial institutions profiled in a recent fraud report by the Nigeria Inter-Bank Settlement System (NIBSS), the national payment switch, failed to report fraud cases, a violation of a CBN directive. 

There is equally a need to strengthen the security systems of financial institutions. In the First Bank incident, the fraud went undetected for two years, raising questions about the bank’s internal control. A lack of an effective internal control system is the major cause of bank fraud, according to research. A 2022 KPMG Nigeria study found that only 30% of local banks have fully implemented KYC and anti-fraud measures. 

“The CBN must take its audit more seriously and do spot checks to see that Information Security Management System (ISMS) is being adhered to in all the banks,” said one fraud expert who asked not to be named.

Get the best African tech newsletters in your inbox

>>> Read full article>>>
Copyright for syndicated content belongs to the linked Source : TechCabal – https://techcabal.com/2024/06/07/fraud-fintechs-banks/

Tags: FraudtechnologyWracked
Previous Post

Copia Global seeks fresh funding after this week’s layoffs

Next Post

LAUTECH Post-UTME screening 2024/2025

Coupling coordination development of water resources-economy-ecology system in Shanxi Province based on system dynamics – Nature

Coupling coordination development of water resources-economy-ecology system in Shanxi Province based on system dynamics – Nature

May 10, 2025
Yolk’s on you – eggs break less when they land sideways – theregister.com

Egg-cellent Discovery: Why Eggs Break Less When They Land on Their Side!

May 10, 2025
How Science and Culture Are Under Attack—and What We Can Do About It – Greater Good: The Science of a Meaningful Life

Defending Science and Culture: Strategies for a Resilient Future

May 10, 2025
Lifestyle choices can help keep memory exercised, functioning – St. Louis Jewish Light

Boost Your Memory: How Lifestyle Choices Can Enhance Brain Function!

May 10, 2025
2025 IIHF Men’s World Championship Preview – NHL.com

Get Ready for the Thrills: A Sneak Peek at the 2025 IIHF Men’s World Championship!

May 10, 2025
Germany’s new economy boss has a plan — and it starts with risk, speed and big bets – CNBC

Germany’s New Economy Chief Unveils Bold Strategy: Embracing Risk, Speed, and Ambitious Investments!

May 10, 2025
The Weeknd made the apocalypse sexy at his 2025 tour launch in Arizona – Yahoo

The Weeknd Turns Up the Heat at His 2025 Tour Launch in Arizona!

May 10, 2025
‘Alias’ Actor Is Unrecognizable After Unexpected Health Diagnosis – parade.com

Shocking Transformation: ‘Alias’ Actor Unrecognizable After Surprising Health Diagnosis!

May 10, 2025
Opinion | The Politics of Medicaid Reform – WSJ

Navigating the Complex Landscape of Medicaid Reform: A Critical Perspective

May 10, 2025
Comings and goings: MPT hires VP of technology, NPR announces changes to Business Desk – Current – For people in public media

Exciting Leadership Changes: MPT Welcomes New VP of Technology and NPR Revamps Business Desk!

May 10, 2025

Categories

Archives

May 2025
MTWTFSS
 1234
567891011
12131415161718
19202122232425
262728293031 
« Apr    
Earth-News.info

The Earth News is an independent English-language daily published Website from all around the World News

Browse by Category

  • Business (20,132)
  • Ecology (598)
  • Economy (609)
  • Entertainment (21,522)
  • General (15,210)
  • Health (9,651)
  • Lifestyle (614)
  • News (22,149)
  • People (612)
  • Politics (616)
  • Science (15,831)
  • Sports (21,119)
  • Technology (15,599)
  • World (599)

Recent News

Coupling coordination development of water resources-economy-ecology system in Shanxi Province based on system dynamics – Nature

Coupling coordination development of water resources-economy-ecology system in Shanxi Province based on system dynamics – Nature

May 10, 2025
Yolk’s on you – eggs break less when they land sideways – theregister.com

Egg-cellent Discovery: Why Eggs Break Less When They Land on Their Side!

May 10, 2025
  • About
  • Advertise
  • Privacy & Policy
  • Contact

© 2023 earth-news.info

No Result
View All Result

© 2023 earth-news.info

No Result
View All Result

© 2023 earth-news.info

Go to mobile version