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The Central Bank of Nigeria (CBN) has directed banks to enforce multi-factor authentication (MFA) for foreign card transactions, aiming to enhance security and reduce fraud. This move is part of efforts to protect users of international cards in Nigeria and ensure seamless transactions. The directive is a welcome development, given the rising cases of card-related fraud in the country.
The CBN’s goal is to boost confidence in Nigeria’s payment system and safeguard consumers. This move aligns with global best practices in payment security, such as 3D Secure (3DS) authentication used internationally. By implementing MFA, the CBN hopes to reduce the incidence of unauthorized transactions and protect sensitive customer information.
Banks are expected to implement these measures promptly, with the CBN monitoring compliance to ensure a secure payment ecosystem. The directive applies to transactions involving international cards, including Visa, Mastercard, and others. This means that customers using foreign cards in Nigeria will need to provide additional verification, such as a PIN or biometric authentication, to complete transactions.
The CBN’s directive also emphasizes the need for transparency in foreign card transactions. Banks must clearly disclose exchange rates and charges to customers before transactions are completed. This will help prevent disputes and ensure that customers are aware of the costs associated with using their cards abroad.
The implementation of MFA is expected to have a positive impact on Nigeria’s payment system. It will enhance security, reduce fraud, and increase confidence in the use of international cards in the country. The CBN’s proactive approach to regulating the payment system is a step in the right direction.
