Fraudster Withdraws N1.9m Through ATM

In apparent reflection of the rising
incidence of electronic payment fraud, a
fraudster withdrew N1.9 million from the
bank account of a customer through ATM
in one week.

This was disclosed by Tam
Tamunokonbia, Head, Consumer
Protection Council, Lagos Office. Speaking
at the maiden summit of Bank Customers
Association of Nigeria (BCAN) in Lagos
last week, he said that ATM fraud is one
of the commonest complaints received by
the Council from bank customers.

He said in addition to this are: Illegal
bank charges as against the minimum re-
discount rate; Non-disclosure of terms
and conditions by Banks and financial
service providers; Mobile Payment
Systems – online trading and Improper
cheque verification.

Citing example of these complaints, he
said, “A lady’s N1.9 million withdrawn in
one week without alert – case in Enugu
High Court. A Company was charged in
excess of N1, 984,662.40, another in
excess of N592, 681 .61, and another in
excess of N552,597.01.”

He said the general responses of banks to
complaints against ATM fraud are:
“Customer compromised PIN numbers.
Camera footage could not be
generated.We are investigating and will
get back.” On complaints of excess bank
charges,he said banks’ responses are: The
customer signed an agreement; The
customer was given the form; It is an
error etc.”

Consequently,Tamunokonbia advised
that: “Banks should respect the
customer’s rights to disclosure; Banks
should provide written terms and
conditions in simple language and legible
words; Charges and fees should be made
known to customers before opening their
accounts – no hidden charges; change in
terms and conditions should be
adequately disclosed to customers – prior
notice; Statement of Accounts to be
provided to customers at regular
intervals; applicable interest rates, how it
is calculated and when to apply the rates
should be made known to consumers;
terms and conditions to be in line with
prevailing laws; avoid Council’s summons
and prosecution – Section 12, 18 and 21 of
the CPC Act, CAP C25, Laws of the
Federation of Nigeria, 2004.”