Connect with us

E-Financial

Beware! Cryptocurrencies Will Make Ponzi Schemes More Fraudulent- Deloitte

Published

on

deloitte 1.jpg

Aside the undisputable fact that emails and passwords used on Ponzi Schemes could be compromised or sold to criminals out there or used in other places were people reuse passwords, the inclusion of cybertocurrencies will even make the scheme more fraudulent, cyber security expert has warned.

In a series of Tweetchat via @TopeAladenusi, Tope Aladenusi, leader, CyberRisk Services, Deloitte West Africa demystified the cryptocurrencies world, especially as it affects the Nigerian market.

The conversation was the first in a 4-part series that will focus on each key component of the 2017 hosted by hosted by #DeloitteCyberOutlook.

He said, in the cyber world, data is not permanently lost even though it is invisible; however “this action (tweetchat) may minimize the risk”, especially when the participants are educated.

Ponzi schemes will become more fraudulent with the adoption of cryptocurrencies and the economic situation.

He further defined cryptocurrency a digital or virtual currency that uses cryptography for security.

Nigeria CommunicationsWeek recalled that MMM Nigeria, popular Ponzi scheme, announced, recently, the introduction of bitcoin, the world’s best performing currency, as part of its mode of payment in its comeback plans.

Sun reported that the Ponzi scheme, which froze accounts of participants on December 13, 2016, is preparing to return, and it is throwing up a number of plans to get its community active again.

Bitcoin, the increasingly popular cryptocurrency or digital currency, was the best performing currency in 2016, appreciating by more than 100 percent in 2016, from about $400 per bitcoin to over $1,000 per bitcoin.

Prior to the freeze of MMM, participants were allowed to provide help in bitcoin, but they were paid back in naira.

In a statement to participants, MMM said “due to the recent sharp price fluctuations of Bitcoin, MAVRO-BTC is being introduced in the system.

“So far, we have only had Mavro-Naira in the system. Even though you provided help via Bitcoin, your Bitcoins, anyway, were recalculated into the Naira at the exchange rate at the moment of providing help, and you were credited with Mavro-Naira in your PO.

“It was the naira amount that grew. In other words, you received 30 percent a month specifically in naira (not in Bitcoins, although you originally provided help using Bitcoins).

“Now, you have a chance to have 30 percent growth of the Bitcoin amount, not the naira amount. So, acquire MAVRO-BTC which will be credited in your PO and will grow at a 30 percent monthly growth rate.

“In a month not only 30 percent will be added to your initial amount, but, it can increase itself due to Bitcoin price growth.

“And, what if Bitcoin price is going to fall? In case Bitcoin price might go down, you will be able to return to naira at any time — instantly convert your MAVRO-BTC into Mavro-Naira (and vice versa, if Bitcoin price might increase again).

“This option is available in PO. You can convert both confirmed and unconfirmed Mavro.

“We hope that with implementing MAVRO-BTC, your participation in MMM will become more comfortable!”

But, Aladenusi warned that Cyber Ponzi schemes are perpetrated on the internet with a promise of unbelievable financial returns on investment, but it actually generates returns for older investors by acquiring new investors or from re-investors.

The Scheme, he reiterated, relies on a constant flow of new investments to continue. When this flow runs out, d scheme falls apart.

“Several cryptocurrencies exist the most popular being Bitcoin. Some ponzi schemes now utilize Bitcoins which will further disrupt the economy as they are not regulated.  Some of these schemes are actually used as bait to advance other types of cyberattacks,” he said.

On the cyber security implications, he said, “Some of the schemes require victims to visit infected websites that can compromise the individuals computer; as a result, systems could be compromised with malware which could affect the user or organization’s data. Cyber Ponzi schemes are addictive & greed may make it continue to be attractive until the user gets seriously hurt”.

He recalled that “In 2016, events occurred as forecasted. There was a twist in cyberattacks; elections were allegedly swayed by hackers. In Nigeria, phishing attacks, hacking competitions and enforcement of cybercrime act were top issues in 2016”

On what happens eventually? Aladenusi predicts “There won’t be enough money to go around, and the scheme unravels.  Some Ponzi schemes operate as pyramid schemes, as they use the funds of new investors’ to pay earlier investors. The first Ponzi scheme was orchestrated by Charles Ponzi in 1919 through postal services”.

In 2017, he continued, “We should expect a persistent rise in these cyber Ponzi schemes as the economic recession looms. A lot of Ponzi schemes will also fall in 2017 and people would lose their money. The failure of these Ponzi schemes have led to several negative impacts such as suicide among affected citizens.

The Tweetchat was part of Deloitte’s key forecast and continues till 13 January 2017 before the official release next week #DeloitteCyberOutlook.

Nigeria CommunicationsWeek believes that technology makes life more exciting and helps improve the lives of people around Nigeria and indeed the world. So since 2007, we have devoted our energy to independent reportage of technology and how they affect lives.

Continue Reading
Advertisement
Comments

E-Financial

UBA Introduces Video Live Chat with Co-Browsing Technology

Published

on

In recent times, customer behaviour and expectations are ever-evolving and with this challenge, comes the need to meet their needs as well as ensure, new offerings are at the forefront of technological evolution.

 

On the back of this development, UBA a leading innovative player in Financial Services is finding new ways to communicate and engage with their customers.

 

With the growing mobile consciousness, customer demand for online services is on the rise and it is imperative to meet this demand with digital self-service platforms.

 

However, to meet this demand, the role of human interaction in the process cannot be underestimated.

 

It fits into our creed to continue to foster our unlimited dedication and access to the customers.

 

In this regard, the United Bank of Africa, in its unrelenting effort to raise the bar, likewise the levels of ease and convenience in customer experience through innovation, has introduced Video live chat with Co-browsing technology.

 

Firstly it enables Customer Experience Experts to help customers in real-time, enabling a support experience centred on visual engagement.

 

Why is this important? 65% of the world are visual learners. Not only can enquiries and issues be resolved more efficiently and swiftly, but co-browsing can complement other channels, improving the overall customer experience

 

UBA is differentiating with Customer Experience and use of Video Live Chat and Co-browsing to improve customer acquisition, service and to improve x-sell & retention by enabling more meaningful contact with customers.

 

Video Co-browsing enables customers to virtually have a one-on-one interface with the bank through co-browsing application via video live chat, text chat, and through real time document exchange. This makes it easier for bank staff to assist customers through a number of difficulties; from filling intricate bank forms and even helping them resolve much more complex transactions. Sometimes, the platform simply facilitates directing the customers to the exact information they need.

 

It provides a secure file-sharing, compliant, real-time communication solutions that enables the bank hold co-browsing sessions to expedite troubleshooting as well as ordinary enquiries.

 

This without a doubt moves light years ahead of the old customer service where interaction is purely through phone calls; this method which has proven to be frustrating especially when it involves fixing a problem urgently.

 

It also comes resourcefully as a quick and easy fix for those who do not have enough time for a physical visit to the bank to take care of their transactions.

 

Other benefits include:

o       All session actions are accountable

o       Secure collaboration

o       Navigate the web together

o       Control access

o       Collaborate online, effectively

 

With this latest innovation, UBA can engage visually and digitally with customers while maintaining human interaction at any given time, in a bid to continue to virtualize customer experience.

 

It offers faster solutions in response to customer enquiries on a more personalised basis anywhere, anytime and from any device.

 

UBA as always, is committed to ensuring greater efficiency and better customer satisfaction. To experience the Video Love chat and Co-browsing technology, visit ubagroup.com .

 

 

Continue Reading

E-Financial

BVN: CBN Orders Banks to Keep Database of Fraudulent Customers

Published

on

Godwin Emefiele, Governor of the Central Bank of Nigeria

The Central Bank of Nigeria (CBN) yesterday directed banks to establish a database of their customers identified through their Bank Verification Numbers (BVNs) to be involved in a confirmed fraudulent activity in the banking industry.

The directive was contained in the Regulatory Framework for Bank Verification Number (BVN) Operation and Watch-list for Nigerian Financial System released by the CBN. The implementation of the framework is with immediate effect.

’Dipo Fatokun, CBN Director, Banking & Payments System, who signed the framework, said bank customers are to by this framework, abide by  the regulatory framework for BVN operations and the watch-list for the Nigerian Banking Industry and also report all suspicious or unauthorized activities on their accounts.

Data from the CBN showed that Nigeria experienced a total of 3,500 cyber-attacks with 70 percent success rate and loss of $450 million within the last one year mainly through cross-channel fraud, data theft, email spooling, phishing, shoulder surfing and underground websites.

Although e-fraud rate in terms of value dropped by 63 percent, after the BVN introduction and improved collaboration among banks via the fraud desks, the total fraud volume rose significantly by 683 percent.

The new regulation is expected to assist the CBN to a great deal, in curbing the menace of fraudsters

According to Fatokun, the new framework is in the exercise of the powers conferred on the CBN, by Sections 2 (d) and 47 (2), of the CBN Act, 2007, to promote the development of efficient and effective payments systems for the settlement of transactions.

He said the framework provides standards for the BVN operations and watch-list for the Nigerian Banking Industry. The watch-list comprises a database of bank customers’ identified by their BVNs, who have been involved in a confirmed fraudulent activity in the banking industry in Nigeria.

Fatokun said the regulatory framework shall guide activities of the participants in the provision of the BVN operations in Nigeria and that the CBN, Nigeria Inter-Bank Settlement System (NIBSS), Deposit Money Banks (DMBs), Other Financial Institutions (OFIs) and Bank Customers are participants in its implementation.

He said the CBN, in collaboration with the Bankers Committee, proactively embarked upon the deployment of a centralized BVN System and launched the BVN in February 2014. This, he said, was part of the overall strategy of ensuring the effectiveness of the Know Your Customer (KYC) principles, and the promotion of a safe, reliable and efficient payments system.

The BVN gives a unique identity across the banking industry to each customer of Nigerian banks.

“This framework also defines the establishment and operations of a Watch-list for the Nigerian Banking Industry, to address the increasing incidences, of frauds, with a view to engendering public confidence in the banking industry.

“This framework, without prejudice to existing laws, is a guide for the operations of the watch-List in the Financial System.”

The Watch-list is a database of bank customers identified by their BVNs, who have been involved in confirmed fraudulent activities.

The framework is expected to clearly define the roles and responsibilities of stakeholders; clearly, define the operations of the BVN in Nigeria; define access, usage and management of the BVN information, requirements and conditions and provide a database of watch-listed individuals.

It is also expected to outline the process and operations of the watch-List and deter fraud incidences in the Nigerian Banking Industry.

In implementing this framework, the CBN is expected to approve the Regulatory Framework and Standard Operating Guidelines as well as approve eligible users for access to the BVN information.

The Nigeria Interbank-Settlement System (NIBSS) is to collaborate with other stakeholders to develop and review the Standard Operating Guidelines of the BVN while the banks are to ensure proper capturing of the BVN data and validate same before the linkage with customers’ accounts.

Continue Reading

E-Financial

NDIC wins Excellence Award

Published

on

The Nigeria Deposit Insurance Corporation (NDIC) has been conferred with the “Special Recognition and Commendation Award for Excellence in Banking (Public Service)” at the Business Day Banking Awards 2017 which was held over the weekend.

In a letter of commendation to the Corporation, the awards committee anchored stated that the NDIC was adjudged as: “an outstanding public service provider” with sterling performance which stood high above its peers in effective leadership and accomplishments.”

According to the organisers, the award committee reviewed the pragmatic and tangible transformations which the Corporation brought into management and execution of its core mandate including mitigation of corruption, insider abuse as well as containing non-performing loans in the nation’s financial system.

The Committee stated that the NDIC: “has also pursued the observance of corporate governance principles in the Nigeria’s financial system”, with declaration that this contribution and other milestone achievements earned the Corporation the public recognition.

Receiving the award on behalf of the Corporation, Alhaji Umaru Ibrahim, NDIC Managing Director, said the corporation welcomed the award as a challenge to further raise the bar of excellent performance on the discharge of its mandate.

He recalled the rebranding of the Corporation in 2013 which gave rise to the overhaul of the its processes, procedures, systems and methods of operation in line with global best practices in deposit insurance.

He expressed delight that Management’s initiatives were paying off with recognitions coming from home and abroad.

Continue Reading

Trending

Copyright © 2017 Communication Week Media Limited.