CBN Issues Deadline as Banks Must Refund Fraud Victims — Access, Zenith, Others Affected
By Erewunmi Peace
The Central Bank of Nigeria (CBN) has released a new draft framework that mandates commercial banks and financial institutions to refund customers who fall victim to authorised push-payment fraud (APP fraud). The directive, which applies to major banks including Access Bank, Zenith Bank, UBA, GTBank and others, introduces strict timelines for reporting and reimbursement.
CBN Targets Rising Fraud Cases
According to the guidelines, customers who experience unauthorised or fraudulent transfers must report the incident within 72 hours. Once the complaint is received, banks are required to launch an investigation and refund the customer if they are found not to be at fault.
The framework gives banks a maximum of 16 working days to complete the investigation and process refunds where necessary.
Additionally, in cases where multiple banks or payment platforms are involved in facilitating the fraudulent transaction, all parties must work together to ensure victims are reimbursed promptly.
48-Hour Refund After Investigation
The draft directive also mandates that once an investigation confirms that a customer has been defrauded, banks must refund the money within 48 hours.
This move is part of the CBN’s effort to curb the increasing cases of fraud linked to online transactions, scammers, and so-called “Yahoo Boys.”
Victims Must Act Quickly
For customers to qualify for reimbursement, they must:
Report the fraud within 72 hours
Provide accurate details of the transaction
Cooperate fully during the bank’s investigation
The CBN emphasized that refunds will only be approved if the customer is not found to be negligent or complicit in the fraud.
Banking Sector Reacts
Players in the financial industry have welcomed the move, saying it will boost consumer confidence, reduce fraud-related losses, and pressure banks to strengthen digital security measures.
The CBN is expected to finalise the draft guidelines soon, after which enforcement and penalties for non-compliant banks will take effect.
Public Advisory
Nigerians are advised to stay vigilant, avoid sharing banking details with third parties, and promptly report suspicious debits to their banks to benefit from the new protection policy.
