JURISDICTIONAL CHALLENGES IN ELECTRONIC BANKING FRAUD (ATM, MOBILE BANKING & INTERNET BANKING): WHO IS RESPONSIBLE UNDER INTERNATIONAL LAW?

Abstract

Jurisdiction is a geographical area within which political or judicial authority may be exercised. E-banking or Internet means any user with a personal computer and a browser can get connected to his bank’s website to perform any of the virtual banking functions. However, the emerging trend in Internet banking in Nigeria is of global concern. For one thing, the Nigerian economy is a strong force in Africa. The country also has a high reputation for Internet-related frauds in the world, having been regarded as the headquarters of Advance Fee Fraud (419). It is also defined for the purpose of this paper as banking activities accessed by using a computer employing modems and telephones. Challenges occur in determining or deciding who and where with this judicial authority may be exercised when fraud is perpetrated; while using internet banking. This may lead to certain questions: which country’s court has jurisdiction? Who will be responsible when withdrawals are made in a customer’s account via ATM? This paper is aimed at evaluating regulatory and constitutional framework to ensure successful practice of internet banking in Nigeria, Tanzania and India, pointing out jurisdictional challenges and determining who is responsible for e-banking fraud under international law. We made recommendations for technological improvement and innovative e-banking law reform.