Banks to Slash Fraud Response Time to 30 Minutes as BVN–NIN Integration Strengthens Security – CBN

Banks across Nigeria have agreed to cut fraud response times to less than 30 minutes in a major step aimed at improving fund recovery, limiting customer losses, and strengthening financial system stability, according to the Central Bank of Nigeria.

This was disclosed by Philip Ikeazor, Deputy Governor in charge of Financial System Stability at the CBN, during the 2026 Nigeria Electronic Fraud Forum technical session held in Lagos. He noted that fraud prevention strategies within the banking sector are being upgraded to match the rising sophistication of digital financial crimes.

While older fraud methods such as ATM card cloning have been largely contained, newer threats including online scams, social engineering, SIM swap abuse, insider compromise, and authorised push payment scams are now at the forefront of industry concerns.

According to Ikeazor, the Nigeria Electronic Fraud Forum has played a critical role in coordinating swift, industry-wide responses to these emerging risks. These measures include mandatory two-factor authentication, continuous public awareness campaigns, establishment of 24-hour fraud response desks in banks, and the development of a standardised framework to address authorised push payment scams.

He emphasized that the agreement to reduce fraud response time to under 30 minutes represents a decisive improvement that will significantly enhance recovery outcomes and reduce systemic exposure within the banking sector.

A key factor contributing to fraud reduction, he explained, is Nigeria’s progress in identity management. The Bank Verification Number system, alongside its ongoing integration with the National Identification Number, has significantly reduced cases of impersonation and identity-related fraud across banking channels and agent networks.

Enhanced identity verification processes are helping to close loopholes previously exploited by criminals, reinforcing the importance of strong identity infrastructure in safeguarding the payment system. The National Identity Management Commission continues to serve as an important partner in these efforts.

Ikeazor also highlighted the banking industry’s transition to ISO 20022 payment messaging standards, noting that the new framework provides richer and more structured transaction data. This development improves traceability, strengthens analytics, and enables earlier detection of suspicious transactions.

As banks and payment service providers complete implementation across real-time settlement and instant payment platforms, data quality and transparency are expected to improve significantly. This will support faster investigations, better fraud pattern recognition, and stronger cross-border cooperation in tackling financial crimes.

He observed that over the past decade, Nigeria’s electronic payments ecosystem has grown rapidly while recording improvements in system uptime, operational stability, and fraud controls. Early regulatory actions, adoption of global EMV standards, stronger cybersecurity frameworks, enhanced consumer protection, and collaboration among industry stakeholders have positioned Nigeria’s payment system to compare favorably with global peers.

Despite this progress, Ikeazor warned that electronic fraud losses have risen in recent years and must be reversed through bold and measurable targets. He called for full utilisation of ISO 20022 data capabilities, real-time identity verification across platforms, enhanced round-the-clock monitoring, structured liability-sharing and reimbursement frameworks, and deeper collaboration with telecom operators and payment service providers.

He stressed the need for measurable performance benchmarks to ensure continuous improvement in fraud prevention efforts.

Also speaking at the event, the Director of the Payments System Supervision Department at the CBN and Chair of the Nigeria Electronic Fraud Forum noted that sustained collaboration among regulators, financial institutions, payment providers, infrastructure operators, identity agencies, and law enforcement has strengthened the security and credibility of Nigeria’s digital payments ecosystem.

She pointed out that milestones such as migration to chip-and-PIN cards, introduction of two-factor authentication, improved consumer protection, and industry-wide fraud information sharing have led to measurable reductions in fraud losses in the past. More recent advances in BVN and NIN integration have further reduced impersonation and identity misuse across banking and agent networks.

The CBN reaffirmed that continued innovation, stronger identity verification, and faster fraud response mechanisms will be central to protecting customers, restoring confidence, and securing Nigeria’s rapidly expanding digital payment landscape.