Multibillion Naira Online shopping fraud rocks banks

Jumia, Konga keep mum

Amid growing online fraud related commercial banks and online shopping platforms are facing a multibillion Naira debit cards purchase of goods online, investigation conducted by our correspondent has revealed.
Information Technology experts explained that hackers had adopted a new method of using last four numbers placed on ATM debit cards to make online transactions that are difficult to trace.
They lamented  that commercial banks and online shopping platforms are not working together to curb the menace that tends to increase as Christmas and New Year celebrations are around the corner.
According to them, all the hackers need is serial number and Card Verification Value (CVV) inserted at the back of the ATM debit cards.
They said, “Fraudsters are now fond of harvesting bank customers’ information through fraudulent sites and using same to defraud them.”
As gathered by our correspondent, a victim with one of the leading banks revealed that he was robbed online of N180,000 around July and the bank blamed him for not keeping his debit card secured.
The victim who does not want his name in print, said “I lost my debit card and four days after, it was used to purchase goods online. The transaction was tracked online but my money was not refunded.
“My bank later blamed me for not calling to block the debit card moment I realized it was missing.”
Another victim, Mr. Oladipo, who works with the ministry of environment, had similar incident lately. According to him, “I was in office when I suddenly received debit alert from my bank account (name withheld) while I was with my ATM card in the office
“I had used my card to purchase online days after. I reported the incident to my bank and I was given a form to fill but the bank could not trace who made the transactions online. “I followed up with the case until I got tired because the bank was not giving me a good answer.”
However as at press time, the head, public relations and communication, Jumia, Mr.  Olukayode Kolawole and the head of corporate communication, Konga, Mr. Gideon Ayogu refused to pick our correspondent’s calls or reply to the text messages on what their e commerce organizations is doing to checkmate online fraud as regards transactions carried out with stolen ATM cards on their platforms.
Responding to Nigerian NewsDirect on safety of online shopping, the Director, VAS & innovation at Inlaks, Mr.  Oladimeji Koyejo in a text message to our correspondent said, his company was working with financial banks to provide end-to-end online protection.  In his words, “We have fraud detection and cyber security solutions we are marketing to financial services Institutions for their end to end protection. They need to avail themselves of such either from Inlaks or other organizations offering similar solution.”
He noted that his company was not responsible for investigation relating to online shopping frauds, stressing that regulating bodies and banks were needed to protect themselves to safeguard depositors’ funds.
According to him, “We only offer enabling infrastructure and application software and Analytics solutions. Regulatory bodies and the banks need to protect themselves to safeguard depositors’ funds.”
About four months ago, The Nigerian Inter-Bank Settlement System (NIBSS), disclosed that the banking industry lost the sum of N12.30 billion to various frauds between 2014 and 2017.
According to NIBSS, Automated Teller Machine (ATM) accounted for the highest fraud in 2017 with an actual loss of N497.64 million with a fraud volume of 9,823.
NIBSS explained that Mobile trailed with N347.65 million loss on 5,055 fraud volume, while across the counter transactions accounted for N259. 02 million loss in 314 fraud volume.
NIBSS added that mobile fraud would overtake ATM fraud by 2020 with the rate of increasing fraud in the channel.
Also, the director, Banking and Payments System, CBN, Mr. Dipo Fatokun said that the development was a threat to the stability of the banking industry and said that to battle the upsurge in e-fraud, CBN would work with relevant stakeholders to establish an industry security operations centre and a risk information centre in order to reduce e-payments frauds and enhance trust in the payments system.
Meanwhile, the Securities and Exchange Commission (SEC) has warned of increased advertisements in electronic and other media soliciting investors to engage in leveraged online retail foreign exchange trading.
“The public is hereby advised that online retail foreign exchange trading is currently unregulated and consequently may be subject to abuse.
“Until a framework for regulation of online retail foreign exchange trading is developed by the SEC, any person participating or engaging in such investment activity does so at his or her own risk,” statement by SEC added.

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