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Fraud: VISA Gives Nigeria CLEAN BILL

Visa International, the world's leading electronic payment company has given Nigeria a clean bill of health, saying NO incident of fraud has been recorded since it commenced issuance of cards in the country.

Vice President, Risk Management, Africa, Visa International, Mr. Neil Hawkey made this known in Johannesburg, South Africa during a chat with some African journalists. "There has been no fraud record of any Visa card issued in Nigeria and I think this is a very good development," he said.

Standard Chartered Bank is the only bank that issues Visa Electron (international debit card) in Nigeria. Two other banks, namely Ecobank Nigeria Plc and Standard Trust Bank Plc also issue Mastercard.

Hawkey however, noted that Mozambique topped the list in Africa acquired fraud losses in selected countries during the fourth quarter of 2004 in the Central Europe, Middle East and Africa (CEMEA), with 1.25 percent fraud to sales losses, followed by Algeria (0.57 percent), Morocco (0.39 percent), Cote D'lvoire (0.24 percent), Tunisia (O.17 percent), Egypt (0.16 percent) and South Africa (0.12). The CEMEA average fraud to sales losses was therefore put at 0.11 percent

During the same period, in terms of Africa issuer fraud losses, he noted that Kenya led the pack with 0.37 percent fraud to sales losses, trailed by Egypt (0.16 per ent), Mauritius (0.15 percent), South Africa (0.07 percent) and Botswana and Tunisia having 0.03 per cent apiece. The CEMEA average fraud to sales losses was therefore put at 0.08 per cent.

But in the first quarter of 2005, he noted that Europe topped the list in terms of counterfeiting by region of card, accounting for 64.1 percent of the counterfeited cards during the period.

This he said, was trailed by some regions in the CEMEA (10.3 percent), United States of America and Asia (9.7 percent each), Canada (4.8 percent) and Latin America (1.24 percent).

He however noted that fraud rates on Visa cards are on downward trend worldwide, stressing that Visa and its member banks work closely together to fight fraud.

"Visa has also developed CDs in Arabic, English and French to help intimate the police and other law enforcement agents with the various types of ways used by card fraudsters. We also give them various hi-tech tools to help them read as well as identify fake cards," he added. Hawkey also maintained that technology would drastically reduce the incidences of card frauds.

Earlier, Visa's Business Development Manager, Nigeria, Mr. Garvin Young, defended the investment made in Valucard, which he described as the largest Visa has ever made in any entity within the sub Saharan Africa. Young who would soon be permanently based in Nigeria by December, said "there is huge potentials for e-payment transactions in the Nigeria."

Visa International have bought 30 percent stake in Valucard Nigeria Plc by committing $2.8 million to secure a seat on the board. Valucard, which is owned by 33 leading financial institutions, has in its consortium 43 banks.

Also commenting on Nigeria, General Manager and Senior Vice President: Sub-Saharan Africa, Visa International, Mr. Robert Clark described the Nigerian market as complex.

"The Nigerian market is complex with lots of banks in the e-payment consortiums using different platforms. The on-going consolidation is also changing the face of banking and there is also pressure to ensure trust and confidence in the banking system," he said.

Specifically, he said Visa is increasing its focus across sub Saharan Africa "because there are huge growth opportunities."

Visa, which has 13,905,452 and $29,796,677,744 card numbers and expenditure value respectively as at December 2004, he said, intends to increase year on year by 31 percent in card numbers and 50 per cent in expenditure value. "We want every metric to be doubled in the next two years and also want to be the alternative to cash," he added.

Visa International is the world's leading payment brand generating nearly $3 trillion in annual card sales volume. Visa, which is widely accepted in more than 150 countries, is reputed to play pivotal role in developing innovative payments products and technologies to benefit its 21,000 members

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May we be strengthened with the ability, willingness and capabilities to be good ambassadors of Nigeria contributing to its uplifting, rather than its detriment. - Cxsm