The Central Bank of Nigeria has directed that all ATM machines located at the premises other than bank locations should be removed before June 30, 2009. The CBN’s directive is to curtail the banks competition for public space. The release by James Olenkah, CBN Director of Banking Operations, further reiterates that ATM Consortium is the sole entirety mandated to deploy off premises ATMs, and that the apex bank intends to license another entirety in the near future.
CBN has given this directive to encourage resourse sharing and has mandated the ATM consortium to take responsibility of the off premise deployments. Some of these consortiums have failed in meeting up targets prior to banks involvement.
Analysts and experts have been emphasizing the implications of this directive.
First, it is very clear that if this directive should take place, the banking halls formerly rid of many people will be filled to the brim. This in itself is a nuisance and does not ensure a security tight financial environment nor does it speak well of a corporate environment.
Secondly, the tellers will have more jobs to do as the crowded ATMs will drive some people to accept cash on counter than wait for the cue. This in itself means that it is not a cost effective system.
From the consumer point of view, this move will represent a reversal of fortunes in terms of convenience. Now the customer must find a physical bank premise to utilize an ATM machine. Chances are that the nearest bank will not be their own bank, meaning they will incur an extra fee for using the ATM machines.
From the telecommunications perspective, it has the potential of reducing the demand pool for bandwidth, making broadband investments less predictable.
Most critically the dynamic pace of economic activities will be reduced significantly. A shortfall of cash at hotels or airports could spell disaster if a physical branch equipped with a loaded ATM is not within proximity. People may revert to carrying of cash than is needed, with its attendant security risks. This stymies the development of an e-economy and cannot possibly be a response to the reasons advanced by the CBN.
They have suggested that CBN review its directive which some think will only benefit a few persons.
Friday, April 24, 2009
SEVERE THREATS TO ONLINE BANKING
The great benefits of internet banking cannot be overemphasized. First apart from providing transactions or statements, it also allows for comfort and convenience as transactions can be immediately effected from any location in the world. All a customer will need to do is just have access to a computer with internet connectivity.
The increase in online banking activities in Nigeria has been spurred by the growing competition in the financial sector and the quest for global presence by several Nigerian Banks.
However a huge threat stands in the way of this easy way of banking transaction. The rise in cyber related crimes leaves so much to be worried about and stands to erode the fledging confidence in online transactions, particularly in Nigeria where people are yet to buy into the service. Evidence of rapid increase in internet fraud is supported by the various alerts splashed on banks’ websites to caution customers on the development. One of such examples is the one posted on Zenith Bank’s website. It reads “…We have uncovered several fictitious websites of some unscrupulous persons sending e-mails, letters and telephone calls to unsuspecting members of the public by impersonating members Directors of Staff of the bank and claiming: to have access to huge US dollar deposits I the bank held in the names of deceased persons; huge US dollar contract sums due for payment to offer employment in the bank on outrageous terms and conditions. Consequently, we expressly dissociate the bank from any transaction entered into of the strength of such scam mails/correspondence or any other representation made via any of the fictitious websites/e-mail addresses. Also, be informed that our transactions on the internet are all in the Nigerian legal tender i.e Naira and not in other foreign currencies, such as Pounds Sterling, Dollars, etc. please note that we do not initiate and or conclude our banking transactions on the web.”
In this struggle to uncover online banking crimes, Zenith Bank Plc is not alone. Several othr banks had in one way or the other tried to draw customers attention to the volatile nature of the internet banking and the need to be conscious of laid down guides to avoid being a victim of financial scam.
The most common and dangerous technique for deluding unsuspecting online users into financial scam is by ‘phishing’, a situation whereby victims are guided into fake websites where perpetrators stole their username and passwords and later use the information to their own advantage.
Information theft has been on the increase in recent times. Big organizations have had their data base compromised by mostly faceless attackers, publicly revealing information hitherto marked as ‘highly confidential’. The need for information security is also getting higher.
Yet their other hideous and pending dangers; the ‘conficker worm’ which is presently regarded as a ‘time bomb’ if unleashed by cyber terrorists will among other things make the likes of internet banking a night mare as whatever anyone does privately online will be revealed to the perpetrators.
To ensure the confidentiality of information and that it is not being manipulated or compromised by fraudsters, experts have argued that easy access and convenience should not be at the expense and mercy of the security of information. Although experts have called on the local financial institutions to create a more secure environment for internet banking activities, it could still be difficult for customers to differentiate between genuine and fake websites except the banks go extra mile in putting a seal that helps users.
Experts also fault the use of one factor authentication as inadequate to fight internet banking fraud. At minimum they suggest, a two-factor authentication is demanded in order to verify the authenticity of the information pertaining to internet banking services.
This could be the use of passwords for first authentication factor and the use of tokens such as smartcard for second authentication factor. A third authentication factor wich entails the use of finger prints as a proof is also canvassed.
Although some transaction switching companies such as e-transact and InterSwitch have recently introduced products with more than one authentication factor, it is unclear if all banks currently conducting internet banking have all subscribed to these.
Except adequate security considerations are put in place to safeguard customer interest, the activities of cyber terrorists are bound to discourage the propagation of online banking in Nigeria.
The increase in online banking activities in Nigeria has been spurred by the growing competition in the financial sector and the quest for global presence by several Nigerian Banks.
However a huge threat stands in the way of this easy way of banking transaction. The rise in cyber related crimes leaves so much to be worried about and stands to erode the fledging confidence in online transactions, particularly in Nigeria where people are yet to buy into the service. Evidence of rapid increase in internet fraud is supported by the various alerts splashed on banks’ websites to caution customers on the development. One of such examples is the one posted on Zenith Bank’s website. It reads “…We have uncovered several fictitious websites of some unscrupulous persons sending e-mails, letters and telephone calls to unsuspecting members of the public by impersonating members Directors of Staff of the bank and claiming: to have access to huge US dollar deposits I the bank held in the names of deceased persons; huge US dollar contract sums due for payment to offer employment in the bank on outrageous terms and conditions. Consequently, we expressly dissociate the bank from any transaction entered into of the strength of such scam mails/correspondence or any other representation made via any of the fictitious websites/e-mail addresses. Also, be informed that our transactions on the internet are all in the Nigerian legal tender i.e Naira and not in other foreign currencies, such as Pounds Sterling, Dollars, etc. please note that we do not initiate and or conclude our banking transactions on the web.”
In this struggle to uncover online banking crimes, Zenith Bank Plc is not alone. Several othr banks had in one way or the other tried to draw customers attention to the volatile nature of the internet banking and the need to be conscious of laid down guides to avoid being a victim of financial scam.
The most common and dangerous technique for deluding unsuspecting online users into financial scam is by ‘phishing’, a situation whereby victims are guided into fake websites where perpetrators stole their username and passwords and later use the information to their own advantage.
Information theft has been on the increase in recent times. Big organizations have had their data base compromised by mostly faceless attackers, publicly revealing information hitherto marked as ‘highly confidential’. The need for information security is also getting higher.
Yet their other hideous and pending dangers; the ‘conficker worm’ which is presently regarded as a ‘time bomb’ if unleashed by cyber terrorists will among other things make the likes of internet banking a night mare as whatever anyone does privately online will be revealed to the perpetrators.
To ensure the confidentiality of information and that it is not being manipulated or compromised by fraudsters, experts have argued that easy access and convenience should not be at the expense and mercy of the security of information. Although experts have called on the local financial institutions to create a more secure environment for internet banking activities, it could still be difficult for customers to differentiate between genuine and fake websites except the banks go extra mile in putting a seal that helps users.
Experts also fault the use of one factor authentication as inadequate to fight internet banking fraud. At minimum they suggest, a two-factor authentication is demanded in order to verify the authenticity of the information pertaining to internet banking services.
This could be the use of passwords for first authentication factor and the use of tokens such as smartcard for second authentication factor. A third authentication factor wich entails the use of finger prints as a proof is also canvassed.
Although some transaction switching companies such as e-transact and InterSwitch have recently introduced products with more than one authentication factor, it is unclear if all banks currently conducting internet banking have all subscribed to these.
Except adequate security considerations are put in place to safeguard customer interest, the activities of cyber terrorists are bound to discourage the propagation of online banking in Nigeria.
NIGERIAN BANKS DIRECTORY
Access Bank Plc www.accessbankplc.com
Afribank Nigeria plc www.afribank.net
Diamond Bank Plc www.diamondbankplc.com
Ecobank Nigeria Plc www.ecobank.com
Equitorial Trust Bank Plc www.equitorialtrustbank.com
First City Monument Bank Plc www.fcmb-ltd.com
Fidelity Bank Plc www.fidelitybankplc.com
First Bank Nigeria Plc www.firstbanknigeria.com
First Inland Bank Plc www.firstinlandbankplc.net
Guaranty Trust Bank Plc www.gtbplc.com
Intercontinental Bank Plc www.intercontinentalbank.com
Nigerian International Bank Ltd www.citybanknigeria.com
Oceanic Bank Int’l Plc www.oceanicbanknigeria.com
Bank PHB www.bankphb.com
Skye Bank www.skyebankng.com
Spring Bank Plc www.springbankplc.com
Stanbic IBTC Bank Ltd www.ibtc.com
Standard Chartered Bank www.ng.standardchartered.com
Nigeria Limited
Sterling Bank Nigeria Ltd www.sterlingbankng.com
Union Bank of Nigeria Plc www.unionbankng.com
Unity Bank Nigerian Ltd www.unitybankng.com
United Bank for Africa Plc www.ubagroup,com
Wema Bank Plc www.wemabank.com
Zenith Bank Plc www.zenithbank.com
Central Bank of Nigeria www.cenbank.com
Afribank Nigeria plc www.afribank.net
Diamond Bank Plc www.diamondbankplc.com
Ecobank Nigeria Plc www.ecobank.com
Equitorial Trust Bank Plc www.equitorialtrustbank.com
First City Monument Bank Plc www.fcmb-ltd.com
Fidelity Bank Plc www.fidelitybankplc.com
First Bank Nigeria Plc www.firstbanknigeria.com
First Inland Bank Plc www.firstinlandbankplc.net
Guaranty Trust Bank Plc www.gtbplc.com
Intercontinental Bank Plc www.intercontinentalbank.com
Nigerian International Bank Ltd www.citybanknigeria.com
Oceanic Bank Int’l Plc www.oceanicbanknigeria.com
Bank PHB www.bankphb.com
Skye Bank www.skyebankng.com
Spring Bank Plc www.springbankplc.com
Stanbic IBTC Bank Ltd www.ibtc.com
Standard Chartered Bank www.ng.standardchartered.com
Nigeria Limited
Sterling Bank Nigeria Ltd www.sterlingbankng.com
Union Bank of Nigeria Plc www.unionbankng.com
Unity Bank Nigerian Ltd www.unitybankng.com
United Bank for Africa Plc www.ubagroup,com
Wema Bank Plc www.wemabank.com
Zenith Bank Plc www.zenithbank.com
Central Bank of Nigeria www.cenbank.com
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