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CBN ask Loan Apps, Digital Banks, Others to Protect Customers from Fraud while usng their services

Digital Financial Service (DFS) providers in Nigeria will be under the strict scrutiny of the Central Bank as they are now required to protect their customers from fraud while using their services.

This was disclosed in the Awareness Guidelines to address gaps in consumer knowledge and practices with Digital Financial Services released by the CBN.

Nigeria is experiencing a surge in digital banking services primarily dominated by fintech and traditional banks.

Many Nigerians using digital services and traditional banking services have fallen prey to online scammers who inflict a loss of over N127bn annually, according to Palo Alto Networks.

CBN said the new guideline would apply to Deposit Money Banks, Merchant banks; Other Financial Institutions; Payment Service Banks, and Other Payment Service Institutions.

The CBN said DFS providers shall, “Provide information that will enable consumers to differentiate DFS products from conventional banking products and services. Ensure ease of access to information on all product offerings to enable consumers to make informed decisions.

“Disclose all terms, conditions, fees, and other associated charges on product offerings prior to enrollment. Conduct evidence-based awareness campaigns to sensitize consumers on how to protect their assets and sensitive details.

“Ensure privacy to data collection and sharing during product enrollment. Ensure an easy opt-out process for data sharing.”

The CBN said service providers must provide fraud prevention tips to customers as well as monitor fraud reports.


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