By Babajide Komolafe

The Central Bank of Nigeria (CBN) has introduced measures to curb the rising incidence of international overseas card fraud against Nigerians. The measures were announced by Mr. Dipo Fatokun, Director, Banking and Payments Department, CBN, in a circular titled, Nigerian issued card present fraud in non-EMV environments.

EMV environments refer to countries with electronic payment cards based on the magnetic stripe (magstripe) technology. Non-EMV environments like Nigeria refers to countries with electronic payment card based on the chip and PIN technology.

CBN stated that, “The occurrence of Card Present Fraud 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 Bank to issue the following directives: All DMBs should do the following:

“Collate all their card frauds abroad and send to CBN not later than January 30, 2015. Subsequently, all data on card fraud occurring abroad should be rendered on the NIBSS fraud portal; Implement Anti-fraud solution on their cards management system, not later than January 30, 2015. Ensure that from February 01, 2015, only customers that expressly indicated their intension of travelling to non-EMV jurisdictions would have their cards default to the magnetic stripe and for the period indicated by the cardholder only. To this end, banks should ensure that their customers are adequately educated. Carry out regular awareness campaign to cardholders on tips to avoid fraud in non-EMV environment. Ensure strict compliance on PCIDSS and their vendors/partners involved in card processing activities. . All the DMBs will be liable to make refund on the card fraud abroad except (items ii to v) are fully complied with.”