There is no doubt that the exponential growth of digital financial platforms (Fintechs), makes them vulnerable to security network breaches due to the vital data they hold, which also makes them a potential target for cybercriminals.
In an effort to raise payment and cyber security awareness among customers, Nigerian Fintech startup, Palmpay, which promotes financial inclusion and improves consumer experiences, has launched a new payment campaign.
This campaign will help raise awareness of payment security in a desperate bid to help customers improve their overall security knowledge, and learn how to spot and avoid e-fraudsters. The promotion comes as internet penetration and digital payments in Africa have increased significantly in recent years.
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A number of potential problems, including fake news, leakage of personal information and financial fraud, have emerged as a result of this rapid expansion of connectivity.
With the launch of its pocket-safe workshop, Palmpay will use both online and offline channels, including the app, social media, official websites and printed materials to publish and expose examples of social media and telecom fraud, as well as how to spot fraudulent behavior.
The company will also improve fraud alert training for vulnerable groups such as students and pensioners, and in addition promote legal provisions related to the proper use of mobile wallet accounts to effectively raise people’s awareness on combating and dealing with telecom fraud and cyber security.
CEO of Palmpay, Chika Nwosu revealed that the fintech startup is also looking forward to working with law enforcement agencies to prevent fraud on the platform and additionally ensure payment security.
In his words;
“The growing use of digital payments brings new risk and security problems. Palmpay is committed to providing users with a secure and reliable digital payment experience. We will continue to optimize our risk control procedures and look forward to working with law enforcement and cybersecurity partners to prevent fraud and ensure payment security.
Chika Nwosu also revealed that proper fraud monitoring and know-your-customer (KYC) is key to the current rise in fraud attempts. With robust anti-fraud and KYC systems, PalmPay protects its users against fraud and unauthorized use with various safeguards, including real-time risk control and abnormal behavior detection, which automatically monitors, flags and freezes high-risk transactions and accounts.
If a person suspects that they or someone else has been the victim of fraudulent activities, they can contact PalmPay customer service via in-app chat, email, social media or call center. PalmPay will investigate and freeze accounts to avoid further losses due to fraudulent activities and to maximize the chances of tracing and recovering funds.
According to a report by the Nigeria Inter-Bank Settlement System, the total number of fraud attempts in Nigeria has grown by 186% from 2019 to 2020. Mobile fraud attempts increased by 330% year-on-year, while online and POS fraud attempts increased by 173% and 215% respectively.
The digital world is undoubtedly ruled by fintech applications and software, from online banking to mobile wallets, which make it easy for people to send and receive funds, as well as save money.
However, despite the positive impact of Fintech today, the chances of security breaches and data theft have also increased, often resulting in the loss of sensitive personal and financial information. It has therefore become a top priority for financial institutions to guarantee the security of users’ transactions.
