….Clamour CBN intervention

By Babajide  Komolafe, Amaka Agwuegbo & Temilade Adegunlehin

As ATM frauds continue to rise in the banking industry, banks’ customers have cried out in agony for the intervention of the Central Bank of Nigeria (CBN).

Vanguard investigation reveals increasing cases of ATM fraud across the banking industry in spite the publicity campaign by Interswitch and its member banks and the introduction of the chip card by some banks. Banks however are quick to blame this incident on the carelessness of customers who they insist compromise their personal identification number (PIN) by revealing it to other people. But recent occurrences in this regard as well as the cold attitude of banks to complaints by victims suggest that banks’ staff may be colluding with perpetrators of ATM fraud.

Despite the fact that the ATMs  have camera which can be used to trace or identify the perpetrators of the crime, investigation reveals cold attitude on the part of banks to investigating complaints by victims.
An example is the case of a customer of one of the big old generation banks who lost about N40,000 to ATM fraudsters. When he complained the bank investigated  and traced the withdrawal to the ATM machine of another bank. The other bank however refused to respond to enquiries from the customers bank about the identification of the person who made the withdrawal.

But another customer was lucky. He lost about N800,000 to fraudulent withdrawal through point of sale (POS ) terminal. Though the bank promised to investigate but he did not hear from the banks after weeks of patient waiting. Fortunately somebody gave him the phone number of the bank’s chief executive officer  to whom he sent a text message appealing for his intervention. His money was returned to him the following week.

A cross section of banks’ customers who had been victims of ATM fraud shared their experience with Vanguard. Mrs Happiness Joseph-Udoh said, “I opened an  account at the  Tinubu branch of my bank but sent my sister to pay in N80,000 at the  Okoko branch, which she did. The next day, I went to the bank to confirm the payment. Later, I want to the Berger branch to withdraw my salary but was told that I had only N26,000 in my account, instead of over N100,000. When I told the cashier that that’s impossible, she said that’s what is on the system.

“I was told to go to the branch where the money was paid in to file a complaint. After explaining the situation of things to them at Okoko branch, I was told it was ATM fraud. I was asked if I revealed my PIN to anyone or sent someone with the ATM to withdraw money and I said no. The Customer Care officer said the card was used in Egbeda with four withdrawals of N20,000.

When I asked the Customer Care officer what steps I could take to recover my money, she said I should forget about it because banks are having problems and can’t make out time for such irrelevant matters like mine. When I requested to see the branch manager, she refused, saying that I should bring my ATM card so that it could be blocked.

“I went to the Berger branch and explained things to them and was told to go to the head office and complain. I got there (the headquarters) and after a series of questions was given a form to fill. I was them asked to go home that a message would be sent to me.

After two  weeks, I was called to come and sign a letter, stating that I used a common PIN. I told one of the departmental manager in my office  about it and he called some people at the head office, but nothing has been done  it till now.”

Mr. John Ugor said, “On the 30th of August, 2007, N230,000 was paid into my bank account by my former employer which I withdrew gradually  till it remained N62,391. Later when I went to Odu Ade branch of the bank to withdraw some money, I was told I couldn’t withdraw that amount because I had only N26,156 left in my account.

I went to the Customer Care officer to complain and was told it was ATM fraud and N35,000 had been withdrawn from my account.

“Prior to that incident, I lost my ATM card but  I reported it to the bank officials that usually  come to our office and was assured that the card would be blocked but I’m not sure if the card was blocked or not.

After the incident I went to the Tinubu branch since that was where I was issued the card and met with the manager who told me I’ll be informed of the outcome. I was also referred to the head office and was told something would be done about it, but nothing yet has  done till date.”

Mrs Comfort Robinson said, “On the 15th July, 2009, before depositing N5, 000 into my bank  account, I asked for my account balance and was told I had N1, 595. I told the Customer Care officer that that’s not correct because I was  supposed to have N596, 000 in the account. She affirmed what I said but stated that on July 6th, some withdrawals were made with my ATM card. She advised that I go to the branch where the account was opened and complain to them.

“So, I went to the Anthony branch and complained. My account statement was printed and it showed that N594,500 was withdrawn from my account in one day. I asked if it were possible to use the ATM card to  withdraw money from an account trice and they said no. I was given a sheet of paper to put down my complaints.

On July 17th, I was called to bring my ATM card so that they could carry out an investigation. I refused because they will turn around to say I compromised my ATM PIN. They said such will not happen, just that an investigation can’t be carried out if they don’t have my ATM card. So I gave it to them.

“I was told to go to the head office and ask of either Adenike Aina or Joseph Eliogu, but when I got there, I was told nobody bear such names there and was directed to their Customer Interactive Center department on the 6th floor. There, my account was checked and they said it was not ATM card fraud but |Purchase card fraud and it will take four weeks to conduct an investigation. I told them I don’t have a purchase card and don’t know what one looks like.

Thereafter, I was asked to sign a letter that I compromised my ATM PIN, but I refused because this was the situation I was trying to avoid initially. I came back to the office and was given a letter by the company lawyer which they refused to acknowledge. Later I told one of the Head of Department in my office and he made some calls to the head office of the bank but nothing has come out it.”

But banks customers who said they had never been victim said it is time for the Central Bank to intervene by setting up a unit to investigate ATM frauds complaint by customers.

Mrs Nwokeji Ijeoma said that while ATM users need to be careful with their PIN, the CBN should extend its supervision to setting a unit to investigate ATM fraud. She said that the CBN should for example ensure that banks comply with the directive that all ATMS should camera to record transactions by people.