The
legacy of innovation at Heritage Bank Limited has been reinforced as the
bank received the Payment Card Industry Data Security Standard, PCI DSS
certification, in addition to the ISO/IEC 27001:2013 award. The PCI DSS is a
proprietary information security standard for organizations that handle branded
credit cards from the major card schemes including Visa, MasterCard, American
Express, Discover, and JCB.
The
PCIDSS, administered by the Security Standards Council, offers robust and
comprehensive standards and supporting materials to enhance payment card data
security. These materials include a framework of specifications, tools,
measurements and support resources to help organizations ensure the safe
handling of cardholder information at every step. The keystone is the PCI Data
Security Standard (PCI DSS), which provides an actionable framework for
developing a robust payment card data security process -- including prevention,
detection and appropriate reaction to security incidents.
The
standard was created to increase controls around cardholder data to reduce
credit card fraud via its exposure. Validation of compliance is performed
annually, either by an external Qualified Security Assessor (QSA) that creates
a Report on Compliance (ROC) for organizations handling large volumes of
transactions.
The
certification was in recognition of the bank’s commitment to effective and
secured financial system which has put the bank in the league of big players in
the industry and confer internationally-recognised standard on its operations.
It
will also put Heritage Bank in a good stead to protect the funds of its
customers and frustrate efforts by fraudsters to access their information and
assets.
Over
the years, substantial part of banks’ revenue was lost to fraud with no single
bank spared.
From
the Financial Institutions Training Centre, FITC report on Frauds and Forgeries
in Banks (January – September 2014), a total of 8,502 cases were reported. The
total amount of money involved was N23.34 billion, out of which N3.01 billion
was actually lost.
The
Nigerian Deposit Insurance Corporation, NDIC in its 2014 report also noted a
significant increase in the reported cases of fraud and forgeries in the
industry, besides several others that are neither reported nor captured in
official data.
According
to NDIC, in the year ended December 31, 2014, Nigerian banks reported 10,612
fraud cases, as against 3,786 in the corresponding period of 2013,
“representing an increase of 182.77 per cent.”
The
amount involved rose by N3.81 billion or 17.5 per cent from N21.80 billion in
2013 to N25.61 billion, even as “expected/actual loss increased from N5.76
billion in 2013 to N6.19 billion.”
The
report also noted that the rise in “expected/actual loss in fraud and forgeries
was mainly due to the astronomical increase in the incidence of web-based
(online banking)/ATM and fraudulent transfer/withdrawal of deposit frauds.”
Presenting
the PCI DSS and ISO certification award last week on behalf of his government,
the Deputy High Commissioner in Nigeria, Mr. Ray Kyles commended the bank for
setting high standard in the financial industry and pledged the continued
support of the British government for Nigeria’s financial institutions. “It is
not an easy task. This award remains a cornerstone of your reputation,” he
said.
In
his reaction, the Managing Director of the bank, Mr. Ifie Sekibo, noted that
banking is a business of risks management, from assets to data, adding that it
is fundamental that whatever a customer keeps in a bank is in safe custody. “We
are a service company providing banking service; and we are the best in the
class of security of our information systems. It means funds kept with us are
safe. This award is a validation of our mission to promote high ethical
standards, integrity, and good business practices,” he said.
Sekibo
stated that innovation is inevitable for the banking industry. This, he said,
is due to changing dynamics across the globe which has penetrated banking. He
therefore, reiterated the commitment of his bank to introducing more innovative
banking products and services to meet the needs of its customers.
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