Enhancing industry synergy is chief among strategies in the fight against mobile money fraud, PricewaterCooperhouse, PwC, has pointed out.
In 2018, the Nigerian Electronic Fraud Forum put the value of reported electronic banking fraud cases over the last three years at N5.5billion.
As the lead presenter at the recent Mobile Money Conference organised by ALMPO in Lagos State, the Senior Partner Risk Assurance, PwC, Wunmi Adetokunbo-Ajayi, represented by a Senior Manager at the Firm, Nkiru Anaehelo, said that MM fraud is steadily on the increase and needs to be curbed.
The Session Chair was the Commissioner of Police, Police Special Fraud Unit, CP Ibrahim M. Kabiru, represented by an Assistant Police Commissioner, Gbenga Adeoye.
The panellists include the Chairman, Economic and Financial Crimes Commission (EFCC), Ibrahim Magu, who sent a representative, the Chairman ACAEBIN, Yinka Tiamiyu, who was represented by Richard Bello, the Group Chief Internal Auditor, First Bank Plc, Uduak Udoh, and the Co-Founder, Pagatech Nigeria, Jay Alabraba.
Talking on the rise of internet fraud, Gbenga shared that reasons for the rise include the ease of committing the crime, the difficulty on the part of the law enforcers to catch the fraudsters, the long process of investigation and the easy bail requirements associated with the crimes.
He revealed that the law enforcement need to be assisted.
Nkiru, in her presentation, shared that MM fraud is steadily on the increase and needs to be curbed.
To reduce the scourge, she gave the following as suggestions:
- Identity Management
- Baseline Understanding/Business Model Risks
- Strengthening Law Enforcement Capacity
- Continuos Fraud Awareness and Prevention Programs
- Combination of Forces with Financial Incentives
- Harsh Penalties
- Fraud Intelligence Solutions
- Incidence Response
Jay shared the true problem is more of payment fraud than money fraud. He also opined that there is a need for awareness if the menace will be curbed and a strengthened relationship should exist between the law enforcement agencies and the MMOs.
Uduak suggested that there be a clear-cut arrangement on what should happen when a fraudulent activity takes place. He also shared that one of the things which make fraud easy is tat most fintechs are quick to market without adequate risk assessment of the products, so they learn along the way.
He also alerted that there is usually a structured group with a value chain working together on this fraudulent acts.
The discussants also shared that to successfully prevent fraud attempts, there is a need for improved regulations, where a collaboration with CBN exists; and enhanced advocacy, where collaboration with users is engaged.