The Reserve Bank of Malawi (RBM) has said mobile money fraud poses a threat to the integrity of the country’s digital payments ecosystem.
RBM Deputy Governor William Matambo was speaking in Lilongwe on Wednesday at the start of a Digital Payments Conference.
The concern by Matambo comes months after the Malawi Communications Regulatory Authority (Macra) revealed that K120 million is lost every month through mobile money fraud.
Matambo said fraudsters continuously devise new and sophisticated methods to exploit vulnerabilities unsuspecting individuals and deceive organisations.
He said it is crucial that industry stakeholders address this issue collectively and with utmost urgency.
According to the RBM Deputy Governor, stakeholders need to enhance their understanding of digital payments fraud patterns, develop robust security measures, and foster a culture of awareness and vigilance, among users.
“Moreover, cybersecurity concerns loom large in the digital payments landscape. As our reliance on digital platforms increases, so does the potential for cyberattacks and data breaches.
“The protection of sensitive financial information and the safeguarding of transactional data must be our top priorities. We must invest in robust cybersecurity systems, promote best practices in data protection, and establish strong collaborative networks to combat the ever-evolving threats in the digital realm,” Matambo said.
The conference, which was co-hosted by RBM and Network International, was held under the theme ‘Exploring Digital Payments: Tackling Fraud and Driving Innovation’.
On the positive side, Matambo said digital payments have played a transformative role in driving financial inclusion in Malawi, particularly through the widespread adoption of mobile money and mobile banking services.
These innovative platforms, Matambo said, have empowered individuals, especially those in underserved and remote areas, with access to basic financial services.
“They have enabled the unbanked to receive and make payments, save money and access credit, thus fostering economic empowerment and enhancing livelihoods.
“We must continue to explore ways to further promote and expand digital financial services to ensure that every individual has the opportunity to participate in the formal financial system,” Matambo said.
Deputy Commissioner of Prisons Responsible for Operations Bazilio Chapuwala said the Malawi Prison Service is putting in place a number of strategies to curb mobile money fraud that originates from the prisons.
Among other things, Chapuwala said the Prison Service is introducing scanners to detect mobile phones that are smuggled into the prisons.
He added that the Malawi Prison Service is also conducting civic education and awareness on the evils of mobile money fraud.
