As digital financial tools become more popular across Africa, women are leveraging mobile banking, online investment platforms, and digital savings apps to manage their finances and build their wealth.
This digital shift offers tremendous empowerment, especially for women who may not have had easy access to traditional banking.
But alongside these benefits, there are growing risks that disproportionately impact women, making it clear that financial literacy alone isn’t enough in this digital age—online safety must be part of the equation.
Cybercriminals often target women with scams, phishing attacks, and other forms of online fraud.
In fact, studies have shown that women, especially those new to digital finance, can be more susceptible to online scams because they are less likely to receive digital safety training.
With financial independence on the rise, it’s crucial that financial literacy programs expand to include online safety education, equipping women with the knowledge and skills to safeguard their hard-earned money.
The Rise of Digital Finance and Digital Risk
For millions of women, the ability to access financial services via smartphone has been life-changing. Digital finance allows women to manage money independently, save, invest, and even start businesses, contributing to their economic empowerment. But as online finance grows, so do cybercrime rates. And recent data highlights a troubling trend: women are disproportionately affected.
According to a report by the International Finance Corporation, women in developing countries are 30 percent more likely than men to experience financial loss through digital fraud. Phishing attacks—where cybercriminals trick users into providing sensitive information are particularly common, often masquerading as urgent messages from banks or payment apps. In another study, researchers found that women are targeted more frequently with “romance scams,” where online relationships are used to extract money over time. With women taking bigger strides toward financial independence, the stakes of digital security are higher than ever.
Why Financial Literacy Needs an Online Safety Upgrade
Traditional financial literacy programs have emphasized the basics: budgeting, saving, investing, and avoiding debt. These skills are essential. But in today’s digital landscape, knowing how to stay safe online is just as crucial. Financial literacy now needs to include awareness about cyber threats, secure online behavior, and scam prevention.
Take, for example, the case of online investment scams. Imagine a woman who has just learned how to invest through a popular app.
She comes across a message from what appears to be a trusted source, promising guaranteed returns. Without knowledge of common scam tactics, she might click the link, enter her information, and unknowingly hand over her financial details to a scammer. The issue here is not that she lacks financial literacy—it’s that she hasn’t been taught how to spot and avoid digital traps.
Practical Tips for Online Safety in Digital Finance
As digital finance becomes part of everyday life, it’s vital that women have the tools to protect themselves. Here are some practical tips to enhance online safety in financial transactions:
1. Enable Two-Factor Authentication (2FA): Whenever possible, enable 2FA on banking and financial apps. This adds an extra layer of security by requiring a second form of verification, such as a code sent to your phone, to access your account.
2. Avoid Sharing Sensitive Information: Be cautious with messages, emails, or calls that ask for personal information, especially account details or passwords. Financial institutions rarely ask for sensitive information this way. If you’re uncertain, contact the bank directly.
3. Verify Sources of Investment Opportunities: Research thoroughly before committing to any investment, especially those promising quick returns. Fraudsters often exploit financial excitement by creating fake websites or social media profiles that look legitimate.
4. Regularly Update and Secure Passwords: Use strong, unique passwords for all financial accounts, and consider using a password manager to keep track of them. Avoid reusing passwords across sites, as one compromised account can give scammers access to others.
5. Stay Educated on Common Scams: Knowledge is power. Make it a habit to stay informed on the latest types of scams, which are often shared by banks or cybersecurity organizations.
A Call for Broader Support from Stakeholders
The responsibility of building a secure digital finance environment doesn’t fall solely on individual users. Policy-makers, financial institutions, and digital platforms all play critical roles in protecting users especially women by creating a safer and more informed online finance space.
Financial Institutions’ Role: Banks and fintech companies must go beyond offering security features by also actively educating their users. Banks can integrate safety tips directly into apps, share simple security tutorials, or send regular reminders about avoiding scams. By providing easy-to-understand resources, institutions empower women to navigate their platforms securely.
Public Awareness Campaigns: Campaigns supported by governments, tech companies, and nonprofits can help spread awareness of online safety, especially in rural or underserved areas. Community-based initiatives that teach online safety, targeting areas with lower digital literacy, can have a significant impact.
Policy-Makers’ Role in Regulation: Enforcing digital security standards and establishing accountability for companies handling user data are essential steps in building a secure digital finance environment. Policies that hold companies accountable for data breaches, require transparency about digital threats, and support anti-fraud education will help build trust and make digital finance safer.
The Road Ahead: Financial Independence Through Knowledge and Safety
Digital financial tools have unlocked unprecedented opportunities for women’s economic empowerment. But with new opportunities come new risks. By equipping women with both financial literacy and online safety knowledge, we not only protect individual users but also strengthen trust in digital finance overall.
Empowering women to manage their finances safely online isn’t just about safeguarding money it’s about ensuring that women can pursue financial independence and build secure, resilient lives. With support from policy-makers, institutions, and digital platforms, we can work toward a future where financial literacy and online safety go hand in hand, creating a safe digital economy for everyone.
Genevive Obi is a Catalyst in Chief at AfterHer
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