The United Bank for Africa (UBA) has announced significant enhancements to the security features of its mobile applications, aimed at preventing unauthorized debits and transfers. This initiative was communicated to customers through a memo sent via email on Tuesday.
In the memo, UBA expressed its commitment to bolstering transaction security. The bank stated that the latest verification measures are now tailored according to the amount being transferred.
Enhanced Authentication for Transactions
As part of this new security framework, UBA has introduced a variety of authentication options designed to minimize the risk of fraud. For transactions exceeding N200,000, customers will be required to input both a personal identification number (PIN) and a token number. Additionally, for amounts between N200,000 and N250,000, authentication will utilize a combination of a PIN and a One-Time Password (OTP).
Customers making transactions valued at N250,000 to N500,000 must also provide a PIN along with either an OTP or a token number. For larger transactions ranging from N500,000 to N10 million, a PIN and token will be necessary for verification. Finally, for transactions surpassing N10 million, customers need to employ a PIN, token, or biometric verification to complete the process. UBA has assured customers that there is no need to memorize these thresholds, as the app will guide them through the authentication steps.
Introduction of Secure Pass
UBA has also launched Secure Pass, a mobile application that facilitates the authentication of transactions. This tool, formerly known as U-Token, generates OTPs that are essential for authorizing high-value internet and mobile banking transactions. Customers wishing to utilize Secure Pass can download the app and follow the provided instructions for setup.
Rising Incidents of Bank Fraud in Nigeria
The bank’s recent security measures are part of a broader effort to combat the alarming rise of unauthorized withdrawals and fraudulent transactions affecting customers across Nigeria. A notable incident occurred on February 21 of this year, when Muyiwa Popoola, the former Vice Chancellor of Ajayi Crowther University, received an alert for an unauthorized withdrawal amounting to N9.98 million from his Guarantee Trust Bank (GTB) account. Popoola reported that two transactions of NOK 4.99 million each were executed without his authorization, despite him maintaining the security of his PIN and token.
The situation prompted Popoola to escalate his case to the Central Bank of Nigeria, underlining the widespread nature of banking fraud in the country. He is one of many Nigerians who have experienced unauthorized transactions, sparking growing concern among consumers and regulators alike.
Data from the Nigerian Interbank Settlement System (NIBSS) revealed that financial institutions in Nigeria suffered a staggering loss of NOK 52.2 billion due to fraud in 2024, marking a significant leap from NOK 17.6 billion in 2023. This alarming trend highlights the urgent need for enhanced security measures in Nigerian banking.
A report by SBM Intelligence further confirmed that fraud incidents in Nigeria’s banking sector have been rising steadily over the past five years. Between 2019 and 2023, economic losses attributable to fraudulent activities surged by NOK 14.71 billion. The report indicates that while the frequency of fraud incidents may have decreased since their peak in 2021, the total monetary losses have markedly escalated, suggesting that fraudsters are evolving their strategies.
