CBN Reiterates Why Banks Should Activate Two-factor Authentication On Online Products

TECH DIGEST – The Central Bank of Nigeria (CBN) has reiterated its commitment to tackling the increasing threats of cyber-attacks in the financial sector.
The CBN said there is a need for banks to comply with the requirement of its two-factor authentication (2FA) on all online products.

The apex bank also pointed out that to reduce quantum of cyber-fraud, more sensitisation is required.

The Director, Banking Supervision (CBN) Hassan Bello, disclosed this while speaking at the FirstBank Information Security Webinar.

Bello said: “The impact of the fraud on the customer include monetary loss, negative perception of bank’s security practices, loss of confidence in the financial system, thus impacting negatively on the cashless policy and the financial inclusion initiative, and others.

“Some of the methods used to get customer information to perpetuate fraud include phishing, vishing, smishing, pharming, spoofing and social engineering.

“To minimise the loss of customer funds, it is necessary to enhance the security measures on all electronic delivery channels.

“Customers should monitor their accounts regularly and promptly report unusual activities and account balances on your account to the bank.

“Customers should desist from any offer asking them to supply their confidential details, such as card numbers and password online because it is a scam.”

On his part, the Head IT Control and Enhancement, FirstBank, Obinna Nbagwu, explained that cyber security sessions are not frequently held event, despite having a lot of customer awareness meetings, therefore commended the bank for the initiative.

Mbagwu noted that when a customer is defrauded through cyber-attack incidents, it is personal to the customer.

According to him, if it is an institution or organisation that is defrauded, the impact is felt at the organisational level.

He, however, urged customers to put in place two-step factor authentication in their email accounts to make it difficult for fraudsters to access their accounts.