Digital Payment Providers Intensify Fight Against Financial Fraud
The National Payment Systems Services Association in partnership with Uganda Bankers Association (UBA) on Friday held a Webinar at MTN Uganda’s head office to fight financial fraud. It came at a time when digital financial transactions are under the threat of fraudsters who target digital financial services.
Uganda has a total of 17 National Payment Systems Providers, including MTN Mobile Money and Airtel Money, plus 25 commercial banks that are targeted by fraudsters, according to Bank of Uganda sources.
During the webinar, MTN Uganda Mobile Money Director, Richard Yego, said they have realized that fraudsters hitting the banks and mobile money customers are the same.
“For that matter, there is a need to plan to put up a centralized cyber security monitoring system that will enable us to blacklist any person or number suspected to have defrauded a bank customer,” he said.
He added that MTN Uganda Mobile Money has strengthened its security features, including the inability of the mobile app to function without a sim card and to stop mobile money transactions within 24 hours, once a sim card has been swapped.
On his part, Kenneth Natukunda, a Certified Financial Crime Specialist (CFCS) at the Financial Intelligence Authority (FIA) said that it had become a challenge in fighting mobile money fraud amidst sim card registration exercises.
“Fraudsters use sim cards registered in the names of dead people or old people in rural areas ignorant about the transactions”, he said.
He advised mobile phone owners to verify sim cards registered under their identification documents.
Patricia Amito, the spokesperson at Uganda Bankers Association, said financial sector customers should take interest in monitoring transactions in their bank accounts to stop any incidence of fraud.
Andrew Rugamba, representing Airtel Uganda Mobile Commerce, appealed to mobile money customers to follow the rules of security when transacting using mobile money, including not sharing their PINs or One-Time Passwords (OTP) with anyone.
MTN Uganda’s anti-fraud campaign was launched in partnership with Pastor Martin Ssempa. The campaign is dubbed Stop Bafere (Bafere is a Luganda language name for fraudsters). MTN Uganda Mobile Money target, according to Yego, is to achieve zero mobile money fraud incidence level.