CBN Directs Banks to Ensure Secure Foreign Card Transactions Nationwide

The Central Bank of Nigeria has directed all banks and financial institutions to implement enhanced security measures for foreign card transactions across the country, reinforcing efforts to protect customers from fraud and strengthen confidence in electronic payments. The move comes amid rising concerns over unauthorised transactions and cybercrime targeting Nigerians using international payment cards.

According to the apex bank, the directive requires banks to adopt robust authentication systems, including two-factor authentication, tokenisation, and real-time transaction alerts, for all foreign card transactions. These measures aim to minimise fraud risks and ensure that customers have full control over their accounts when making purchases, withdrawals, or transfers abroad.

The CBN highlighted that foreign card transactions, including payments on e-commerce platforms and withdrawals at ATMs outside Nigeria, have been increasingly targeted by fraudsters exploiting weak security controls. In response, the apex bank stressed that banks must proactively monitor, detect, and prevent suspicious activities, while educating customers on safe usage practices.

Banking operators have been instructed to update their fraud detection protocols and collaborate with card scheme operators such as Visa, Mastercard, and American Express to strengthen security standards. Customers may also be required to register devices and verify identities before completing foreign transactions, a step aimed at reducing unauthorised use.

The CBN emphasised that compliance with the directive is mandatory, and banks failing to implement the required safeguards could face regulatory sanctions. The central bank further urged financial institutions to report progress and share best practices to ensure a consistent level of protection across the industry.

Industry experts have welcomed the directive, noting that it aligns with global best practices in financial security. They said the measures are expected to reduce the incidence of fraud, protect consumers’ funds, and improve overall confidence in electronic banking channels.

The apex bank also reminded consumers of their role in securing transactions, advising them to avoid sharing PINs, passwords, or card details with third parties. Customers are encouraged to enable transaction alerts, use strong passwords, and regularly monitor their account statements to detect anomalies promptly.

This directive forms part of the CBN’s broader digital finance strategy, aimed at promoting safe and efficient electronic payment systems while curbing financial crimes. Analysts believe that stricter security protocols for foreign card transactions will not only protect consumers but also enhance Nigeria’s attractiveness for cross-border e-commerce and international trade.

Banks are expected to roll out these enhanced security features in phases, with priority given to high-risk accounts and frequent foreign card users. The central bank will monitor compliance closely and may issue further guidelines to address emerging threats in the electronic payment ecosystem.

In conclusion, the CBN’s mandate underscores the importance of secure digital banking and reinforces the responsibility of banks to safeguard customer funds. By strengthening protections for foreign card transactions, the central bank aims to foster a safer, more resilient financial system while promoting trust and confidence in Nigeria’s banking sector.