The Nigeria Inter-Bank Settlement System (NIBSS) Plc has called for stronger security tools to protect customers in the country's digital payments ecosystem. Tosin Obadimu, Head of the Fraud Management Department at NIBSS, highlighted the need for integrated security controls to reduce customers' exposure to certain forms of fraud. This comes as financial fraud continues to evolve alongside digital payment services, with impersonation, social engineering, and unauthorised account access among the risks faced by users.
Obadimu's comments come after PalmPay introduced an upgraded Security Centre as part of its "PalmPay Dey For You" consumer campaign. The Security Centre brings together several account and transaction controls, including real-time security checks, Large Transaction Shield, Night Guard, USSD account and card lock, as well as alerts for suspected fraud recipients, duplicate transfers, and new-device logins. These controls aim to strengthen verification for higher-risk transactions and facilitate faster reporting when incidents occur.
According to Obadimu, consolidating these controls can help address threats associated with social engineering and account takeover. He noted that the measures could strengthen verification for high-risk transactions and help prevent fraud. The Security Centre combines a real-time Security Check with user-configurable safeguards, allowing customers to better protect their accounts.
Financial fraud continues to evolve, and industry stakeholders have increasingly focused on technological safeguards and customer awareness as part of broader fraud prevention efforts. Samuel Oluyemi, Chief Operating Officer of PalmPay Nigeria, said that fraud management requires continuous innovation and empathy for the customer above profitability. He emphasised the need for financial institutions to continually review their approach to fraud management as customer behaviour and payment channels evolve.
The "PalmPay Dey For You" campaign also includes customer education on common fraud risks, such as impersonation, and encourages users to take precautionary measures when carrying out digital transactions. The campaign aims to put customer protection at the heart of the customer's experience. By educating customers on potential risks, PalmPay hopes to empower them to take control of their financial security.
The development comes as financial institutions, payment providers, and other stakeholders continue to strengthen their fraud prevention measures in response to emerging risks within Nigeria's increasingly digital payments environment. The collaboration between industry stakeholders and the implementation of advanced security tools are crucial in preventing financial fraud and protecting customers.
The call for stronger security tools highlights the need for the financial industry to stay ahead of evolving threats. Key to this effort is the integration of advanced security controls, customer education, and continuous innovation in fraud management. By working together, stakeholders can create a safer and more secure digital payments ecosystem for customers in Nigeria.
Key points
- NIBSS urges stronger security tools to protect customers in Nigeria's digital payments ecosystem.
- PalmPay introduces upgraded Security Centre as part of its consumer campaign.
- Financial institutions must continually review their approach to fraud management as customer behaviour and payment channels evolve.
