E-Financial
150m Reasons to Stop Fraud @ Checkout
Security is a big deal for us consumers. That’s why we invest in gate men and guards for our homes and expensive anti-virus software for our PCs.
Despite that, how many of us have actually paused to consider what happens after we pay with our credit or debit cards at the checkout? Where does our information go to? Or, who is protecting it? In just a few short seconds after handing over our card, we’ve paid and gone on our way, with little thought to the process that takes place behind the scenes.
Behind each transaction is actually a carefully orchestrated process. When a Visa cardholder uses a card to buy a pair of shoes, it’s actually the acquirer — the merchant’s bank — that pays the merchant for the shoes.
Then, the issuer — the cardholder’s bank — reimburses the acquirer, usually within 24 to 48 hours. Last, the issuer collects from the cardholder by withdrawing funds from the cardholder’s bank account if a debit account is used, or through billing if a credit account is used.
With all the linkages and players involved, you might wonder about the security of it all. How does the system detect that it’s really you, the genuine cardholder, who is making the purchase? What happens if you lose your card? Will a thief be able to conduct a fraudulent transaction using your information with the same ease and speed?
The Art Of Fraud Prediction
The next time you pay with your card, pause and consider how your bank decides whether or not to authorize your request.
All transactions must go through a payments processing network such as VisaNet, a robust and secure system that ensures that your payments are not just fast and reliable, but safe too.
Sophisticated risk management services within the payments network ensure that every player in the payments ecosystem is protected – from cardholders like you, to merchants and banks – from losses due to fraud, theft, or unauthorized use of debit, credit and prepaid cards.
Chances are your bank depends on risk management services such as Visa Advanced Authorization that monitor transactions, detect any unusual spending patterns and flag possible fraud – all in real-time.
The payments network analyzes thousands of examples of valid purchase transactions and constantly updates account transaction patterns so that future purchases can be evaluated against the most current information.
So for example, if you only ever use your card to purchase online music, a transaction for an expensive widescreen HD television, perhaps in another country, would be identified by the payments system as unusual.
A rating of that transaction’s potential for fraud is then sent to the card issuer, your bank, including information on whether it was part of a reported third-party data security compromise.
With this information on hand, your bank can respond immediately to the merchant on whether to accept or decline the transaction.
If suspicious, your financial institution may choose to temporarily put charges on hold, notifying you as soon as possible to verify the legitimacy of the charges.
This is important, because the ability to analyze transactions in real-time helps stop fraud at the checkout – even before it takes place!
At Visa, the reliability and security of every one of the 150 million transactions we process each day lies with VisaNet, the world’s largest retail electronic payments processing network.
Every day, VisaNet connects up to 2.1 billion cards, millions of acceptance locations, 2.0 million ATMs and 14,800 financial institutions.
This translates to more than US$6.5 trillion in global consumer spend on our products every year.
That’s a huge responsibility on our shoulders, and we know we can never take this trust for granted.
Criminals and fraudsters never stop. They are smart, nimble and determined – moving quickly to take advantage of new opportunities to perpetuate fraud.
This is why we have invested heavily in new technologies and innovations – from encryption of data to chip technologies – to make sure we are always one step ahead.
Ours is a system that is consistently and constantly upgraded to provide new services, enhancements and capabilities that consumers expect.
Visa also collaborates with the broader payment community on innovative data security techniques, authentication solutions and technologies and fraud prevention strategies to keep payments safe.
This is why over the past five years, even as global transaction volume has increased dramatically, global fraud rates have remained near historic lows.
So the next time you see the word ‘approved’ appear on the Visa card terminal in front of you, you know that your payment has been made not just successfully, but securely too.
Federal High Court in Lagos has fixed July 1, 2025, for the commencement of trial in a money laundering case involving Cititrust Holdings PLC and three of its subsidiaries.
The subsidiaries are Cititrust Funding PLC, Cititrust Credit Limited and Cititrust Financial Services Limited,
The companies are facing an eight-count charge filed by a team of prosecutors from the Economic and Financial Crimes Commission (EFCC), comprising Anasoh Henry Onyekachi, Frankklin Ofoma, Abdulhamid Lamido Tukur, and A.A. Usman.
According to the charge, between 2021 and 2023, the companies, all incorporated in Nigeria, allegedly operated investment management services without a valid licence from the Central Bank of Nigeria (CBN).
This act contravenes Section 57 of the Banks and Other Financial Institutions Act (BOFIA) 2020 and is punishable under Section 57(5) of the same legislation.
The prosecution also alleged that the companies conducted a Collective Investment Scheme without registering with the Securities and Exchange Commission (SEC), another violation of regulatory requirements.
In one of the counts, Cititrust Credit Limited is specifically accused of failing to report high-value financial transactions to the Nigerian Financial Intelligence Unit (NFIU).
These transactions include a N20 million transfer on January 7, 2021; a N200 million transfer on April 4, 2021; and a N200 million lodgement on January 29, 2021.
Additionally, both Cititrust Credit Limited and Cititrust Financial Services Limited are alleged to have made a single transfer and lodgement respectively of N42 million into their bank accounts on January 29, 2021, without proper disclosure to relevant authorities.
The alleged offences are in breach of Sections 11(1)(b) and 11(3) of the Money Laundering (Prohibition) Act 2022, as well as Section 54(1) of the Investment and Securities Act 2007, and are punishable under the respective laws.
The court is expected to begin full proceedings on July 1.
Ecobank Nigeria’s long-term issuer credit rating has been downgraded to ‘CCC-’ from CCC, with the outlook placed at negative by S&P Global Ratings. This is a resultant effect of the $150 million bond buyback offer on the bank’s $300 million Senior Unsecured Eurobond.
Part of the tender offer made by Ecobank includes an early tender premium of $12.50 for every $1,000 in principal (equivalent to 1.25%), with the anticipated settlement date set for July 8, 2025. The offer also requests bondholders’ consent to eliminate the capital adequacy covenant on the outstanding notes.
These actions also led S&P to downgrade the $300 million Eurobond from ‘CCC’ to ‘CCC-’. Although S&P notes that it does not consider the tender offer a distressed debt restructuring.
However, this assessment is at risk of changing if the bank does not receive the promised capital injection from the parent group, Ecobank Transnational Incorporated (ETI).
Following the naira devaluation, Ecobank was unable to meet the regulatory Capital Adequacy Ratio (CAR) requirement, as its CAR dropped to 7 per cent. This was below the 10 percent regulatory minimum. The breach of the CAR caused the bank to seek the consent of its bondholders to pause the capital adequacy notes on the Eurobond notes till September 2025.
Following this development, the bank received a $50 million prepayment on promissory notes from its parent company, ETI, along with early repayments on certain foreign currency loans. However, it has been insufficient in restoring the capital adequacy to regulatory levels.
According to S&P, the bank is expected to receive another $50 million capital injection from its parent group before August 2025. However, the ratings agency notes that if the bank is unable to receive this capital injection, it will inevitably default on its bonds. A situation that would cause a further downgrade to ‘CC’.
It was recommended that Ecobank Nigeria consider raising $150 million through additional Tier-1 instruments to strengthen its liquidity buffers. Additionally, the bank was advised to intensify efforts to recover its foreign currency-denominated loans.
Fidelity Bank Plc, leading financial institution has reaffirmed its commitment to corporate social responsibility with the donation of food and essential items to the Old People’s Home in Yaba, Lagos.
The donation was made possible through the generosity of the bank’s Nexus Inductees Class, under its Corporate Social Responsibility initiative known as the Fidelity Helping Hands Programme (FHHP).
Through the FHHP, staff across Fidelity Bank branches nationwide identify crucial interventions needed in their immediate community and raise funds to execute them. The bank’s management then matches this contribution with an equal amount and disburses it for the selected project.
Commenting on the donation, Divisional Head, Brand and Communications, Fidelity Bank Plc, Dr Meksley Nwagboh, emphasized the bank’s unwavering commitment to impacting its host communities positively noting that the community is an essential part of the bank success story.
“Today’s donation is a token of our appreciation for our incredible parents and guardians who have raised outstanding individuals that trust us with their banking needs.
“Our donation to the Old People’s Home reflects our deep commitment to supporting the well-being and dignity of our senior citizens.
“We are honored to contribute to a cause that ensures they receive the care, comfort, and respect they deserve.” Nwagboh stated.
Appreciating the gesture from the bank, the Director-in-Charge of the Home in Yaba, Adetutu Ipaye, said “Community support initiatives such as this from Fidelity Bank is vital to sustaining our mission and enhancing the quality of life for the elderly.
“We urge other organizations to follow in the Bank’s footsteps as this kind of support will go a long way to ensure that the elderly live with dignity and comfort”.
One of the beneficiaries from the home, Mr. Kamoru Adeyetu noted that, “Your presence today has brought us immense joy, and our greatest happiness lies in seeing the younger generation thrive. Beyond the gifts, your visit means the world to us and please remember to visit us regularly.”
Ranked among the best banks in Nigeria, Fidelity Bank Plc is a full-fledged Commercial Deposit Money Bank serving over 9.1 million customers through digital banking channels, its 255 business offices in Nigeria and United Kingdom subsidiary, FidBank UK Limited.
The Bank is the recipient of multiple local and international Awards, including the 2024 Excellence in Digital Transformation & MSME Banking Award by BusinessDay Banks and Financial Institutions (BAFI) Awards; the 2024 Most Innovative Mobile Banking Application award for its Fidelity Mobile App by Global Business Outlook, and the 2024 Most Innovative Investment Banking Service Provider award by Global Brands Magazine. Additionally, the Bank was recognized as the Best Bank for SMEs in Nigeria by the Euromoney Awards for Excellence and as the Export Financing Bank of the Year by the BusinessDay Banks and Financial Institutions (BAFI) Awards.
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