Chika Nwosu, the MD/CEO of PalmPay, a fintech innovator with 25 million users in Nigeria, has emphasised the critical importance for consumers to prioritise their online safety as recent data shows an upsurge in fraud cases in Nigerian banks.
According to a recent report by the Financial Institutions Training Centre, FITC, on Fraud and Forgeries in Nigerian banks for Q2, 2023, the amount involved in fraud cases has jumped to 276.98 percent increasing from N2.58 billion to N9.75 billion during the period.
The escalation attributed to the increased adoption of internet connectivity and digital payment solutions in Nigeria has unfortunately led to a rise in fraudulent activities.
Speaking at the 4th Africa Financial Technology Congress which was held recently in Lagos, he encouraged users to be digitally literate. According to him, “Being online safety conscious is as simple as having a two-step verification on WhatsApp to prevent hackers. For a fraud process to occur, there is always consent knowingly or unknowingly from the consumer.”
There are several potential issues, including fake news, leakage of personal information, and financial scams that have emerged as a result of this rapid expansion in connectivity.
“To safeguard the entire e-wallet platform, most of the banks and fintech players in Nigeria have developed a lot of infrastructure to help safeguard customers’ accounts, prevent fraud, and reduce risks. Even if there is fraud, it is detected quickly and remedied,” he added.
PalmPay’s risk management strategy revolves around factors like user identity, network preferences, behavior, device patterns, and fundamental data.
This creates a closed-loop process for efficient risk control. Employing this method, the fintech platform rapidly spots concerns like fake accounts, fraudulent marketing, and security breaches, such as port scans and credential stuffing.
According to Nwosu, ‘The fund and payment safety is our top priority and we are dedicated to bolstering user education. PalmPay runs a Wallet Safety Workshop, a monthly campaign for payment security awareness training to help users improve their overall security knowledge, and learn about how to spot and avoid e-scammers.”