UBA Tightens Mobile App Security with Tiered Authentication
United Bank for Africa (UBA) has updated its mobile banking security protocols, introducing mandatory multi-factor authentication based on transaction value to combat fraud. According to a customer memo sent Tuesday, transactions of ₦200,000 or more now require a PIN and token. Transactions between ₦200,000 and ₦250,000 need PIN and One-Time Password (OTP) or PIN with Biometric/Token. For amounts from ₦250,000 to ₦500,000, PIN and OTP or PIN and Token are required. Transactions between ₦500,000 and ₦10 million mandate PIN and Token, while transfers above ₦10 million require PIN, Token, and Biometric. The bank advised customers to use its Secure Pass app (formerly U-Token) for OTP generation on high-value transactions.
This move addresses Nigeria's escalating banking fraud crisis. The Nigeria Inter-Bank Settlement System (NIBSS) reported financial institutions lost ₦52.2 billion to fraud in 2024, up from ₦17.6 billion in 2023. A notable case involved Professor Muyiwa Popoola, who lost ₦9.98 million from his GTB account via unauthorised transfers he did not authenticate, highlighting that victims often compromise no credentials. SBM Intelligence notes that while fraud incident numbers have decreased since 2021, the average loss per incident has risen significantly, suggesting fraudsters are targeting larger sums more effectively.
The policy directly affects UBA's millions of mobile banking users nationwide. Customers must ensure their registered phone numbers and email addresses are current to receive OTPs and update their app to access the new authentication flows. This adds steps but aims to prevent the devastating losses many face. Will you proactively enable biometric authentication on your UBA app for high-value transfers, or will you rely solely on PIN and token despite the new requirements? How will you verify that your contact details with the bank are up to date to avoid being locked out of your own funds?