Nigeria’s Computer Warehouse Group (CWG) has announced a partnership with South African fintech company Entersekt that will see CWG provide Entersekt’s full suite of mobile-based authentication and security services to banks and other enterprises in markets where CWG operates.
“This is a major step towards ensuring that our customers can operate in conformity with relevant global practices and regulations by rolling out market-leading online and mobile experiences at competitive prices without exposing their users to fraud,” Adewale Adeyipo executive director and vice president of sales and marketing at CWG said.
The partnership with Entersekt begins with a roll out of Transakt, a sophisticated app-based mobile identity and authentication product. Transakt is available as a powerful software development kit, ready to be incorporated into your existing mobile applications, or as a standalone mobile app.
The Transakt security platform harnesses the power of digital certificate technology and deploys it seamlessly to the mobile phone or tablet. Industry-standard X.509 certificates uniquely identify each registered user’s mobile device, digitally sign real-time transaction verification requests, and encrypt communications to and from your servers.
CWG will also introduce Interakt to help banks secure transactions initiated over USSD. With Interakt, bank customers can authenticate their online banking, mobile banking, e-commerce payments, and more, on both a smart phone or a feature phone. Using network-initiated USSD or push USSD, Interakt provides an out-of-band authentication channel between financial institutions and their customer’s mobile device.
Authentication requests and responses are transmitted over the mobile network’s GSM channel, which is distinct from the online or mobile channel used to log in and initiate transactions. This means that fraudsters cannot intercept the authentication request and response, even if the online channel is compromised.
According to the Nigeria Deposit Insurance Corporation (NDIC), Financial frauds perpetrated through online banking and ATM/card-related activities constituted about 93 percent of total fraud accounted for in 2017. The government agency noted that the volume of fraud in this segment accounted for N1.51 billion ($4.2 million) or 63.66 percent loss in the industry in 2017.
CWG will also introduce Entersekt’s Connekt, which acts as a protocol bridge between the card networks, cardholders’ browsers, and the company’s enterprise services, providing a 3-D Secure access control server accredited by Visa, Mastercard, and American Express.
Last week, First City Monument Bank (FCMB), a mid-tier bank in Nigeria announced attempts by fraudsters to carry out card transactions in its commercial banking subsidiary.
“Investigations indicate that a few of the fraudulent transactions were completed but the total amount involved is not material,” a statement signed by Funmi Adedibu, FCMB’s company secretary said.
“The Bank has assured its customers that they will not suffer financial loss and has started making refunds on the affected accounts.”
The Bank also assured its stakeholders that it has put measures in place to prevent a recurrence.
CWG will ride on situations like this to push the need for Nigerian banks to start using products such as Transakt, Interakt and Connekt, as it seeks to improve its performance.
The tech company’s shares are currently below listing standard on the Nigeria Stock Exchange (NSE). It last traded at N2.54 on July 19, few months after reporting a first quarter profit of N5.7 million ($15,791).