Nigerian-British Engineer Petitions EFCC, CBN to Ban Card PINs for Online Transactions to Curb Fraud Risks
Dr. Kingsley Chibuzor Aguoru, a Nigerian-British Chartered Engineer and Director of Information Security, has formally called on the Economic and Financial Crimes Commission (EFCC) and the Central Bank of Nigeria (CBN) to ban card PINs in online transactions, a move he asserts will protect Nigerian consumers from fraud and financial losses.
With over 20 years of experience in financial technology and security, Aguoru expressed strong concerns over the security weaknesses in Nigeria’s online payment systems. In his petition, titled “Urgent Call to Ban Card PIN Usage for Online Payments in Nigeria,” he argued that using card PINs in digital transactions exposes consumers to significant risks of cyber fraud.
“Card PINs were originally intended for in-person transactions at ATMs and POS terminals where secure encryption protects consumers,” Aguoru explained. “Using them online jeopardizes consumer security.”
He shared his experience in pioneering a solution in 2005 to combat fraud in card-not-present transactions in the UK, which employed innovative one-time password (OTP) methods. Though initially met with resistance from major networks like Visa and Mastercard, OTP has since become a global authorization standard.
Aguoru criticized Nigerian payment providers, including Paystack, Flutterwave, and Interswitch, for continuing to use card PINs online, calling this practice outdated and risky. “Online card PIN usage exposes consumers to cyber threats such as phishing, keylogger attacks, and other forms of intrusion,” he stated.
To enhance security, Aguoru recommended that OTPs or Multi-Factor Authentication (MFA) should replace PINs for online transactions. He also proposed the use of hardware card readers for secure offline PIN entry, which would then generate an OTP for online use, effectively minimizing risk.
In his appeal to the CBN, Aguoru urged the apex bank to eliminate web-based PIN entry for card payments and enforce the use of OTP or MFA across all payment providers.
Additionally, he emphasized the need for consumer education on secure online payment practices to mitigate exposure to cyber threats. Aguoru further highlighted the necessity for the CBN to enforce compliance with advanced security standards, thereby ensuring the safety of Nigerian cardholders.
Aguoru believes that by adopting these measures, the CBN could reduce risks for consumers and align Nigeria’s payment systems with international best practices, strengthening online transaction security nationwide.