Circular on Nigerian Issued Card Present Fraud in Non-EMV Environments

BPS/DIR/GEN/CIR/06/002 January 19, 2014
TO: ALL DEPOSIT MONEY BANKS (DMBs)

Circular On Nigerian Issued Card Present Fraud In Non-Emv Environments

The occurrence of Card Present Fraud in Non-EMV environments is on the increase, especially when International hybrid cards issued by Nigerian banks are used in non-EMV environments like the USA. It has therefore become necessary for the Bank to issue the following directives; 1. All DMBs should do the following:
i. Collate all their card frauds abroad and send to CBN not later than January 30, 2015. Subsequently, all data on card fraud occurring abroad should be rendered on the NIBSS fraud portal.

ii. Implement Anti-fraud solution on their cards management system, not later than January 30, 2015.

iii. Ensure that from February 01, 2015, only customers that expressly indicated their intension of travelling to non-EMV jurisdictions, would have their cards default to the magnetic stripe and for the period indicated by the cardholder only. To this end, banks should ensure that their customers are adequately educated.

iv. Carry out regular awareness campaign to cardholders on tips to avoid fraud in non-EMV environment.

v. Ensure strict compliance on PCIDSS and their vendors/partners involved in card processing activities.

2. All the DMBs will be liable to make refund on the card fraud abroad except (items ii to v) are fully complied with.

Please be guided and ensure strict compliance with the content of this circular. 'Dipo Fatokun Director, Banking and Payments System Department