CBN Introduces GPS Tracking for POS Terminals to Combat Fraud

The Central Bank of Nigeria (CBN) has introduced a new directive requiring all Point-of-Sale (POS) terminals to be geo-tagged with GPS tracking within 60 days. This move aims to combat fraudulent activities and ensure transparency in the payment system.

How it Works

  • Every POS device must be tied to one business address and can only operate within a 10-metre radius.
  • Devices used outside of their registered location will be automatically shut down.
  • Old machines will be upgraded with GPS tracking, while new ones will come with the feature built-in before activation.

Why is the CBN doing this?

The CBN aims to:

  • Pinpoint exactly where transactions are happening.
  • Shut down fraudulent or unregistered devices.
  • Build more trust and transparency in the payment system.

Impact on Agents and Customers

  • Agents: Must fix their machines to their registered address and obtain approval for any location changes.
  • Customers: Can expect safer transactions and fewer scams.
Broader Implications

The CBN's move is part of a larger effort to strengthen the integrity of the financial system. By curbing fraud and enforcing order, the CBN aims to maintain confidence in digital payments, which is crucial as physical cash use continues to decline.