There’s a rather unfortunate pattern that trails every new or existing product, invention, or system. This is not about product failures or anything of that nature. Rather, it is about products falling into the wrong hands and being used to perpetuate evil.
In the financial world, this “evil” is referred to as fraud. The term encompasses any act that is against the lawful use of banking or related systems. Usually, these acts come with the direct or intended result of financial or personal gain.
A long and disturbing history of fraud has plagued banking and financial systems worldwide. Unfortunately, Nigeria has seen its fair share of this.
The problem led the federal government of Nigeria to institute what it calls “an industry-wide forum” against electronic fraud.
According to the apex bank, the unique industry-wide structure is relevant because no one institution can defeat fraud all by themselves. After all, fraud affects all institutions, and because a collaborative effort is more effective at driving results, among others.
What is the Nigeria Electronic Fraud Forum (NeFF)?
The Nigeria Electronic Fraud Forum is an assembly of banking operators, security agencies, and relevant stakeholders.
The forum has an overarching goal of limiting the activities of fraudsters and the occurrence of fraud in the Nigerian banking system.
In simple terms, it works to create a network of intelligence and resistance. And this is done with the aim of uncovering existing fraud techniques while also anticipating and correctly positioning against possible new techniques.
Like any other institution, the NEFF has some key objectives that serve as a pointer to all its activities. These objectives are to:
Educate the banking industry and the general public about fraudulent trends.
Promptly and openly share fraud information as a way of encouraging swift action.
Formulate effective risk management approaches.
History and Structure of the Nigeria Electronic Fraud Forum (NeFF)
NeFF, or the Nigeria Electronic Fraud Forum was instituted in 2011.
Much of the forum’s development happened between 2015 and 2017. This came about through the implementation of Cyber-Crime Prohibition Act 2015, the introduction of microfinance and mortgage banks into the forum, and the consideration of blockchain’s potential within the payment ecosystem.
The NeFF is not an independent body. Instead, it exists and operates under the leadership of the Central Bank of Nigeria (CBN).
Anyone in the position of the Director, Banking and Payments System Department of the Central Bank of Nigeria, automatically serves as the chairman of the NeFF.
This individual leads the steering committee behind the forum.
Other nine members of the committee include:
Chairman, Committee of e-Banking Heads
Chairman, Committee of Chief Compliance Officers of banks in Nigeria
Managing Director, Unified Payments Services Limited
Managing Director, Interswitch Nigeria Limited
Office of The National Security Adviser
Executive Chairman, Economic and Financial Crimes Commission
Association of Licensed Mobile Payment Operators (ALMPO)
Electronic Payments Providers Association of Nigeria (EPPAN)
Information Security Society of Africa, Nigeria (ISSAN)
Within the Central Bank of Nigeria, departments and offices such as Consumer Protection, Financial Policy and Regulation, Information Technology, Legal Services, Banking Supervision, Corporate Communication, and the Shared Services Office, are also a part of the NeFF.
This steering committee will meet as often as possible and also when a need arises. On the other hand, regular members of the NeFF will meet once in two months.
Functions of the Nigeria Electronic Fraud Forum (NeFF)
The NeFF is a collaboration that seeks to address the issue of electronic fraud attacks on Nigerian banking systems. Its responsibility is highly demanding, given the prevalence of fraud and the evasive nature of these attacks.
The specific functions of this forum are spelt out by the Central Bank of Nigeria (CBN) to include:
reporting every incidence of fraud the moment it is identified and confirmed.
providing data on fraud incidents, including information about the type of fraud, location, name of merchants involved, etc.
taking reasonable steps against fraud as outlined in agreed strategies.
To add to the obvious, the NeFF assists digital investigations that seek to fish out e-payment fraudsters.
Members of the forum are also mandated to commit their time, expertise, and available resources as needed for the achievement of a collective goal.
Conclusion
Despite the untiring effort of the forum, data in 2023 shows that about NGN 9.5 billion was lost to electronic fraud.
These figures look alarming, no doubt. But come to think of how much more losses would have been recorded if the NeFF wasn’t in existence.
On a closing note, we must say that while the Nigeria Electronic Fraud Forum offers a significant service to the public, the public - in turn - has the obligation to protect itself from falling victim to electronic payment scams.
Some key steps to take are to keep passwords and access pins private, avoid clicking on suspicious links, and only use familiar websites, applications, and service providers.