NIBSS fraud chief urges stronger security tools for digital payments - The Guardian Nigeria News
The evolving nature of financial fraud and the growing use of social engineering in digital transactions have heightened concerns over the security measures available to customers across Nigeria’s payments ecosystem.
Speaking on recent developments in customer protection, Tosin Obadimu, Head of the Fraud Management Department at the Nigeria Inter-Bank Settlement System (NIBSS) Plc, highlighted the role of integrated security controls in reducing customers’ exposure to certain forms of fraud.
Obadimu spoke against the backdrop of PalmPay’s introduction of an upgraded Security Centre as part of its “PalmPay Dey For You” consumer campaign.
The Security Centre brings together several account and transaction controls, including real-time security checks, Large Transaction Shield, Night Guard, USSD account and card lock, as well as alerts for suspected fraud recipients, duplicate transfers and new-device logins.
According to Obadimu, consolidating these controls can strengthen verification for higher-risk transactions and facilitate faster reporting when incidents occur.
“PalmPay’s upgraded Security Centre brings account and transaction protection into a single hub, combining a real-time Security Check with user-configurable safeguards such as Large Transaction Shield, Night Guard, USSD account and card lock, and in-flow alerts for suspected fraud recipients, duplicate transfers and new-device logins,” he said.
He added that the measures could strengthen verification for high-risk transactions and help address threats associated with social engineering and account takeover.
“From an industry perspective, these controls strengthen verification before high-risk transactions against social engineering and account takeover, while the integrated dispute, fraud reporting and case-tracking features should speed up incident reporting and improve fund recovery across the ecosystem,” Obadimu said.
Financial fraud continues to evolve alongside digital payment services, with impersonation, social engineering and unauthorised account access among the risks faced by users. Consequently, industry stakeholders have increasingly focused on technological safeguards and customer awareness as part of broader fraud prevention efforts.
Samuel Oluyemi, Chief Operating Officer of PalmPay Nigeria, said the development underscored the need for financial institutions to continually review their approach to fraud management as customer behaviour and payment channels evolve.
“With my over two and a half decades in Nigeria’s payments ecosystem, I understand that fraud management requires continuous innovation and empathy for the customer above profitability,” Oluyemi said.
“As customers’ financial services needs evolve, so must the techniques of customer protection against fraud and unauthorised transactions improve. At PalmPay, innovation is about solving real problems for Nigerians and giving them greater confidence to bank with us. That is what PalmPay Dey For You represents — putting customer protection at the heart of the customer’s experience,” he added.
The campaign also includes customer education on common fraud risks, including impersonation, while encouraging users to take precautionary measures when carrying out digital transactions.
The development comes as financial institutions, payment providers and other stakeholders continue to strengthen their fraud prevention measures in response to emerging risks within Nigeria’s increasingly digital payments environment.
