Banks to pay for mobile money transactions fraud.

Customers who lose money to fraudsters through the mobile money-driven Unstructured Supplementary Service Data (USSD) banking will be reimbursed by their banks, CBN reveals.

The USSD Banking platform allows customers to transfer money to third party, buy airtime, open accounts, pay bills and book travels, among other services, using their mobile phones, but the level of customer protection is still below regulatory threshold.

CBN Director, Banking and Payments Department, Dipo Fatokun, said CBN reviewed the process of USSD deals and directed banks to allow their customers transacting through the platform to use a PIN instead of the last 4 digits on their ATM cards, but banks are yet to perfect the security around it.
They are not providing additional security, such as allowing PIN into the transaction process as against the current practice whereby customers rely on the last four digits of their ATM cards for transactions. This has resulted in many customers losing their money to fraudsters or people who have access to their ATM cards.

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