Banks’ Demand for a SIM Swap List Rejected by Telcos

Telecommunication Companies in Nigeria have rejected the demand by the Association of Chief Audit Executives of Banks in Nigeria (ACAEBIN) to submit lists of SIM Swap customers to the Nigeria Interbank Settlement System (NIBSS) for e-fraud watchlisting.

The chairman of the association, Yinka Tiamiyu, said stakeholders have been working with the Nigeria Interbank Settlement System (NIBSS) Plc on how to improve the SIM Swap and make the banking system safer for e-payment customers.

The Central Bank of Nigeria (CBN) Financial Stability Report showed that reported cases of fraud and forgeries by banks increased to 25,029 from 20, 774 while the total amount involved stood at N18.94 billion.

Tiamiyu said a joint industry committee of the Nigerian Electronic Fraud Forum (NeFF) and the Nigerian Communication Commission have advised NIBSS Plc and the telcos to develop tools that allow Telcos to submit records of SIMs swapped on their network to NIBSS to enable the banks to access such records online, real-time.

According to him, “ACAEBIN has escalated this matter to the Central Bank of Nigeria (CBN) to intervene. We have also sought  the intervention of the National Security Adviser (NSA), pointing out the security implication of this action of the Telcos to the security of the nation. The association will not be deterred as we will continue pushing until we get to our desired destination.”

Tiamiyu stressed that the banking industry is creating a lot of digital products to keep the business running and if you look at the banks confirmed cases of fraud that resulted in the loss of about N2.1 billion, more than 90 per cent of those frauds were perpetrated through technologically driven channels.

He said the knowledge of technology will enable internal auditors to identify gaps in Nigeria’s core banking applications, in the products and what is needed to be done to bridge the gap.

”Banks and telcos collaboration is needed in the fight against e-fraud given the rise in the use of mobile phones for banking transactions”, he added.

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