SEC readies new technology to discourage identify theft

NEWS DIGEST – The Securities Exchange Commission is developing a technology, Identify Management System, to discourage identity fraud in Nigeria, a menace which has become a mainstay in the financial sector in past months.

Identity theft is an illegal act where another person’s name and/or personal information is used to obtain shares, credit and loans, among others.

Lately, several complaints have been registered on Twitter on how bank accounts are being opened for individuals without their consent. And were these accounts to be used for anything fraudulent, the account bearer would be found culpable despite no prior awareness of the account.

This is one of many identity theft cases the SEC looks to tackle with its Identity Management System in the capital market.

The Nigeria crypto space continues to experience increased regulations, partly to reduce thefts and crimes. The space had become more appealing to fraudsters since the 2021 ban who would offer fraudulent coins or tokens while impersonating new or established offerings.

The Director-general of SEC, Mr Lamido Yuguda, expects the Identity Management System to finally solve all identity management issues militating against the finance sector.

Mr Yuguda added that the commission decided to engage relevant stakeholders in a bid to resolve issues of identity management to tackle the problem of unclaimed dividends.

Chairman of the committee on the IMS project, Mr Aigboje Aig-Imoukhuede, said the commission had made a step in the right direction with the quick release of Rules on Issuance, Offering Platforms and Custody of Digital Assets, information that is expected to support open finance, which the SEC is looking to drive.

“The Committee had clearly defined the task ahead in a Road Map and also identified that the Project would be carried out in stages supported by a consultant with recourse to the SEC on a regular basis,” said Mr Aig–Imoukhuede.

“The Committee is committed to ensuring that the customer journey for investors is such that it would cause a revolution in the Nigerian capital market, thereby making our market attractive to the tech-savvy and younger generation.”

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