Lagos - The Central Bank of Nigeria (CBN) is considering a biometric authentication system for transactions that are carried out on automated teller machines (ATMs) and point of sale terminals (PoS).
If approved, the biometric authentication for PoS and ATMs would be implemented in 2015.
This is part of measures aimed at strengthening the payment system under the bank’s cash-less policy initiative.
Lamido Sanusi, the Governor of the CBN, said the initiative would eliminate fraud and other factors that promoted exclusion from the financial system.
He noted that the biometric system had become imperative in order to enable the bank to effectively address safety of customers’ funds as well as avoid losses that might arise owing to compromise of personal identification numbers (PINs).
“No doubt, with the introduction of cashless society, there would be prevalent use of credit cards to perform transactions on ATM, POS and internet banking, and these transactions would have to pass through the public infrastructure which are prone to cyber threats.
"Cases of debit and credit cards cloning are other vulnerable areas that need urgent attention for the country to reap the benefits of a cashless society," said Sanusi.
Sanusi said the central bank was aware of the teething problems being faced by Nigerians as the bank implemented the cashless policy but was doing everything to address this and make electronic banking the preferred option of transactions in Nigeria.
“The CBN had taken a giant step to gain the confidence of ATM consumers following the circular enforcing migration from magnetic stripe debit card to chip and Pin (EMV compliant) type of cards," Sanusi said.
Statistics, he said, showed such effort have reduced fraud incidences by 90 per cent.
“Many customers are now embracing these electronic channels in their transactions because of near impossible efforts of would be fraudsters in being able to clone debit cards to perpetrate fraud as it was the case during the pre-migration era,” Sanusi added.
- CAJ News