The Nigerian Data Protection Commission is investigating three banks for data breaches. He also stated that the CBN’s new mandate to commercial banks to capture social media handles is needless.
The Nigeria Data Protection Commission (NDPC) is investigating three commercial banks, one university, and other suspects over data breaches.
The NDPC listed Zenith Bank, Fidelity Bank, Guarantee Trust Bank, Babcock University, and Leadway Insurance for various data breaches.
NDPC to investigate and sanction organisation for data breaches A statement by the Commission’s Head of Media, Itunu Dosekun, on Thursday, June 29, 2023, revealed by the National Commissioner of NDPC, Vincent Olatunji, said the Commission is investigating the organizations following complaints from data subjects.
He explained that the Commission is empowered with a legal framework to address Nigerians’ data breaches with the new Nigerian Data Protection Act. He said: “In the last few weeks, the NDPC has received complaints about unlawful data processing, unauthorized access to personal data, and violation of data subjects’ rights.
According to him, under the new data law, a data controller with an annual turnover of N200 billion may pay as high as N2 billion, representing 2% of the gross income. Offenders to pay N2 billion if found culpable He said offenders may also face a one-year jail term.
Olatunji said: “We are currently investigating Guarantee Trust Bank, Fidelity, Unity, Zenith banks, Leadway Insurance and Babcock University, among others, for the data breach.”
Nairametrics reports that he directed online money lending apps to seek clearance from the NDPC and that many microfinance banks are yet to align their operations with data privacy and protection conditions.
He said loan apps would face the law with the new mandate of the Federal Competition and Consumer Protection Commission (FCCPC). Collection of social media handles by banks unnecessary The NDPC revealed that the current policy of the Central Bank of Nigeria (CBN) directing banks to harvest the social media handles of their customers is superfluous.
On Sunday, June 25, 2023, CBN directed commercial banks to collect and verify social media accounts as part of its due diligence and Know Your Customer (KYC) procedures for payment on occasional customers,
The Cable report said. CBN said the aim is to prevent financial fraud and terrorism financing while enhancing the precision of customer verification. However, NDPC’s head of media, Dosekun, said data collection should pass through a process. “N200k to N10m”:
CBN to sanction Access, Zenith, other banks over customers’ social media Info Legit.ng reported that the Central Bank of Nigeria (CBN) is set to sanction financial institutions, including commercial banks, for failure to obtain the necessary information on their customers.
CBN had earlier asked financial institutions to demand customers’ social media handles, among several other details, as part of the Know Your Customer (KYC) requirements. Banks are also expected to do an onsite verification of the permanent addresses of customers as filled in their KYC forms.