E-Financial
Hackers Hit ATMs in Lagos
A large number of Automated Teller Machines located in some posh areas of Lagos like Victoria Island, Lekki Peninsula Phase I and II, and Ikoyi have been attacked by hackers and electronic fraudsters, according to Punch
The hackers are said to be fixing small fraud tools on the ATMs in order to harvest the passwords of cardholders who come to collect cash or do some other transactions on the machines.
Top bank officials privy to the development said a number of banks had deployed detectives to monitor their ATMs in those locations, especially in the Victoria Island and Lekki axis.
A banker told Punch correspondent, “A number of the ATMs in Victoria Island and Lekki axis have been compromised by hackers. Some of these fraudsters visit those ATMs very late in the night or very early in the morning to fix some fraud devices on them, which are capable of collecting cardholders’ information, including their passwords.
“They come back later to remove those devices. The information collected is then used to commit fraud against those customers later.
“Most of us (banks) are aware of the development and we are very vigilant now. What some of us have done is to get a patrol team of security men to start combing the affected areas and the ATMs from time to time. We will get those guys soon.”
While some of the cardholders’ information collected by the fraudsters were being used to commit online-related frauds locally, a large number was used to clone ATM cards and used to shop in malls abroad, especially in the United States of America, bankers told our correspondent.
Mr. Dele Adeyinka, vice-chairman, Committee of e-Banking Industry Heads, confirmed the fraudsters’ activities.
He, however, said that following the banks ‘compliance with the CBN directive asking them to install anti-skimming devices on their ATMs, it would be difficult for the fraudters’ devices to work.
He said, “Yes, it is true that hackers are carrying out those activities. It is not only in Victoria Island axis, they are doing it everywhere. But all the banks have complied with the CBN directive on anti-fraud tools. So, it will be difficult for those fraud devices to work.”
Punch reported that Rising cases of electronic frauds, especially ATM-related scams, which have made Nigerian banks to lose billions of naira in recent times, have forced some lenders to prevent their payments cards from working in the US, China and a few other countries.
According to Central Bank of Nigeria statistics, the banks lost N40bn to electronic frauds in 2013 alone.
On January 19, 2015, the CBN ordered banks in the country to prevent payment cards (debit and credit) issued by them from working in fraud-prone countries, including the US, South Africa and China.
The central bank also said that banks would be liable for frauds committed abroad using cloned cards belonging to their customers.
The CBN said in a circular that from February 1, 2015, all the banks in the country must stop the payment/ATM cards from working in non-Europay, MasterCard and Visa countries.
It directed the banks to only activate the cards when customers to whom the cards had been issued were travelling abroad and this should only be for the period that the customers would spend overseas.
The circular, signed by Mr. Dipo Fatokun, dDirector, Banking and Payment System, CBN, read in part, “The occurrence of card present frauds in non-EMV environments is on the increase, especially when international hybrid cards issued by Nigerian banks are used in non-EMV environments like the USA.
“It has, therefore, become necessary for the CBN to issue the following directives and that all DMBs should do the following: collate all their card frauds abroad and send to the CBN not later than January 30, 2015; subsequently, all data on card frauds occurring abroad should be rendered on the NIBSS fraud portal; implement anti-fraud solution on their card management systems not later than January 30, 2015; ensure that from February 1, 2015, only customers that expressly indicated the intention of travelling to non-EMV jurisdictions would have their cards default to the magnetic stripe and for the period indicated by the cardholder only.”
Prior to the deactivation of the payment cards from working overseas, one of the ‘systemically important banks’ made refunds in excess of N200m in 2014, The PUNCH had reported exclusively.
The PUNCH had in August last year also exclusively reported that electronic fraudsters had been duplicating payment cards belonging to Nigerian bank customers and using them to buy items worth millions of dollars from shopping malls in the US.
The development had forced top executives of the banks and senior officials of the CBN to meet with the Economic and Financial Crimes Commission sometime last year in order to stem the tide.
The Chairman, Chartered Institute of Bankers of Nigeria, Lagos State Branch, Mr. Abolade Agbola, had emphasised the need for the CBN to fast-track the biometric registration of bank customers as a way of checking electronic frauds.
The President, Institute of Chartered Accountants of Nigeria, Mr. Chidi Ajaegbu, said the CBN had achieved a lot in the cashless drive but there was a need to continue to build public confidence in the electronic means of payment.
Nigerian banks have resumed international transactions on naira-denominated debit cards, marking a significant shift in banking operations for customers who rely on foreign payments.
This is coming nearly three years of suspension.
United Bank for Africa (UBA) and Wema Bank, in separate communications to their customers, announced the restoration of international payment services on their naira cards.
In a notice to its customers, UBA said the reactivation of international transactions on its premium naira cards aligns with its commitment to delivering improved and seamless banking experiences.
“We are pleased to inform you that all UBA Premium Naira Cards, including Gold, Platinum, and World variants, are now enabled for international transactions,” the bank stated.
“This means you can now use your Premium Naira Card for global payments — including online shopping, POS, and ATM transactions — with ease and flexibility. If you haven’t used your card recently, now is a great time to rediscover the convenience and prestige that comes with being a UBA premium cardholder.”
Similarly, Wema Bank announced that its customers can now make dollar payments on international platforms using their naira Mastercards.
“Your Wema Naira Mastercard just went global!” the bank said. “Now you can pay in dollars on all your favourite international platforms — Amazon, eBay, AliExpress, Netflix, Spotify, YouTube.”
The development marks a major relief for Nigerian customers who have had to rely on dollar cards or alternative payment methods since most banks suspended international usage of naira cards in 2021 due to foreign exchange scarcity.
Flutterwave, Africa’s leading payments technology company, today announced the relaunch of its flagship remittance solution, Send App, across U.S. states following its newly acquired Money Transmitter Licences (MTLs).
This comes after Flutterwave secured 20 additional MTLs in the U.S., adding to the 14 licenses the brand has held since 2023.
Altogether, this achievement raises Flutterwave’s total number of direct licenses to 34, allowing the company to operate across many U.S. states and territories without partners or intermediaries.
Users in the U.S. can now send money to Nigeria, Ghana and Egypt, unlocking new remittance corridors that were previously unavailable.
Alongside this expansion, the onboarding process has been streamlined with a quick ID check, making it faster and easier for new users to get started.
Additional improvements include optimised payment support for US-issued Visa and Discover cards, enhanced security measures to safeguard transactions and maintain compliance, and improved in-app flows for a simpler, more efficient sending experience.
This return also highlights Flutterwave’s commitment to delivering a seamless, secure, and regulatory-compliant user experience for all Send App customers in the U.S. Users can now send money from DC, Georgia, Maryland, North Carolina, Michigan, South Carolina, Tennessee.
Other U.S. states and territories where Send App by Flutterwave supports outward remittances include Alaska, Arizona, Arkansas, Delaware, Idaho, Illinois, Indiana, Iowa, Louisiana, Maine, Minnesota, Mississippi, and Missouri, Nebraska, New Hampshire, New Mexico, North Dakota, Oklahoma, Oregon, Puerto Rico, Rhode Island, South Dakota, Utah, Washington, West Virginia, Wisconsin, and Wyoming.
Commenting on the relaunch, Olugbenga “GB” Agboola, Flutterwave Founder and CEO, said, “By expanding our reach and enhancing our services, we are empowering millions of Africans in the U.S. to maintain strong financial ties with their home countries, support their families, and contribute to economic development across the continent. Additionally, we are staying true to our core mission of bridging Africa with the global economy and vice versa.”
Earlier this year, Flutterwave integrated Swap into Send App for seamless FX transactions and strengthened its services in Ghana by securing approval for inward remittance from the Bank of Ghana.
Federal High Court in Abuja on Friday affirmed the authority of the Nigeria Inter-Bank Settlement System (NIBSS), to manage the Bank Verification Number (BVN), database across the country, in line with the Central Bank of Nigeria (CBN), Act and other relevant banking laws.
This is according to a judgment delivered by Justice James Omotosho on Friday.
Wolemi Esan, senior advocate of Nigeria, NIBSS’s counsel, and Kofo Abdulsalam-Alada, lead counsel for the CBN, among others, had sought a restraining order to prevent any institution in Nigeria from challenging the agency’s statutory authority to maintain and manage the BVN database.
This comes as NIBSS had alleged that Digital Rights Lawyers Initiative filed multiple suits, either directly or through proxies, challenging its authority to manage the BVN database and claiming that such management violates constitutional privacy rights.
However, Justice Omotosho, delivering his judgment, said the BVN does not infringe on the constitutional right to privacy.
“The initiative does not infringe on the constitutional right to privacy but rather serves as a necessary tool for safeguarding public interest and enhancing financial security.
“NIBSS has the power to manage the BVN,” the judge said, citing relevant CBN laws.
“The court grants the reliefs of NIBSS as prayed,” he stated.
Nigerian Banks End Years of Embargo, Resume Intl Transactions on Naira Cards
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