The Chief Executive Officer of PalmPay, one of the leading fintech companies in Nigeria, Chika Nwosu, has said that Nigeria will have to focus more on making the consumers digitally literate to stem the tide of online frauds in the country.
Speaking at the 4th Africa Financial Technology Congress which was held recently in Lagos, Nwosu said a digitally literate consumer would be able to prioritize his or her online safety.
While noting that digital literacy is very crucial, particularly in light of recent data revealing a surge in Nigerians embracing electronic platforms for transactions that were once primarily cash-based, he said most consumers fall prey to fraudsters online out of ignorance.
Online Safety
Emphasizing the need for consumers to be safety and security conscious while online, the PalmPay CEO said:
- “To be 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 a number of 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.”
PalmPay’s strategy
He noted that PalmPay’s risk management strategy revolves around factors like user identity, network preferences, behaviour, device patterns, and fundamental data.
This, according to him, creates a closed-loop process for efficient risk control.
Employing this method, Nwosu said PalmPay rapidly spots concerns like fake accounts, fraudulent marketing, and security breaches, such as port scans and credential stuffing.
- “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,” he said.
According to a recent report by the Financial Institutions Training Centre, FITC, on Fraud and Forgeries in Nigerian banks for Q2, 2023, fraud cases have jumped to a whopping 276.98% during this period.
The escalation is attributed to the increased adoption of internet connectivity and digital payment solutions in Nigeria, which has unfortunately led to a rise in fraudulent activities.