Electronic Fraud: Banks Focus on COBiT Certification

Having completed the certification of Payment Card Industry Data Security Standards (PCI DSS) version 3.1, the latest security measure aimed at waging off hackers from networks, money deposit banks are now focusing on implementation Control Objectives for Information and Technology (COBIT ).

According to Ahmed Adesanya, IT Security and Connectivity consultant, Cobit 5 is a business framework for the governance and management of enterprise IT. Cobit 5 provide global acceptable principle, practice, analytical tools and models to help increase trust in, and value from information system.

Cobit 5 builds and expands on Cobit 4.1 by integrating other frameworks, standards, and resources, including ISACA Val IT and risk IT, Information Technology Infrastructure Library (ITIL) and related standards from International Organization for Standardization (ISO).

Nigeria CommunicationsWeek investigations revealed that aside three banks that have completed the implementation of COBiT before Central Bank of Nigeria commissioned report on IT Standard in banks conducted by Accenture, no other bank have completed it as most of them are on implementation process.

It was further gathered that the delay in the implementation of COBiT by banks was necessitated by CBN directive with deadline on PCIDSS which made them focused on the certification of PCIDSS before COBiT.

According to Osita Nwanu, Head, Systems Control & Business Continuity Management,  First City Monument Bank, on the need for IT Standard to prevent e-fraud,” the sustained growth of e-transactions as depicted by the increased transaction volume and value in 2015, coupled with the rapidly evolving nature of technology advancements within the e-channel ecosystem continues to attract cybercriminals who continuously develop new schemes to perpetrate e-fraud”.

He added: “although e-fraud rate in terms of value reduced by 63% in 2015, due, in part, to the introduction of BVN and improved collaboration among banks via the fraud desks; the total fraud volume increased significantly by 683% in 2015 compared to 2014.

Similarly, data released recently by NITDA (Nigeria Information Technology Development Agency) indicated that Nigeria experienced a total of 3,500 cyber-attacks with 70% success rate, and a loss of $450 million within the last one year.

The implementation of COBiT became necessary with the Central Bank of Nigeria released Information Technology (IT) standards to commercial banks to ensure quality service delivery in the banking system.

In that circular to all banks, the CBN said that the standards were in pursuant to the need to identify and adopt global IT standards for Nigerian banks.

It said that the standards would serve as reference points to ensure quality IT service delivery through Infrastructure Transformation programme.

The circular added that the blueprints for the standards and the framework had been defined and released for adoption pending the completion and launch of the Bankers’ Committee IT Standards Portal.