The Managing Director of Moniepoint, one of Nigeria’s leading financial technology platforms, recently emphasized the critical need for users to safeguard their account details and avoid sharing bank account numbers publicly. This advisory aligns with ongoing efforts in the fintech sector to combat escalating financial fraud in Nigeria.
Rising Fraud Concerns in Fintech
The prevalence of fraud has surged, with digital platforms often exploited by cybercriminals. A key factor enabling fraud is the indiscriminate sharing of sensitive financial information, such as account numbers, on public platforms. Fraudsters use this information to craft social engineering scams, tricking individuals into revealing additional data that compromise account security.
According to reports, Nigerian financial institutions, including Moniepoint, have faced increased scrutiny. Some banks, like Fidelity Bank, have even restricted transactions involving fintech platforms due to concerns over fraud and money laundering activities.
Approach to cybersecurity
Babatunde disclosed Moniepoint’s collaboration with organizations such as the Nigerian Financial Intelligence Unit (NFIU) and the Economic and Financial Crimes Commission (EFCC) to enhance fraud detection and implement sophisticated security controls.
Highlighting Moniepoint’s preventive measures, he noted that the bank has built a transaction monitoring and anti-money laundering team with advanced internal rules to detect and prevent fraud.
Fraud cases in Nigerian banks have surged significantly, with a 65% increase reported by the Financial Institutions Training Centre (FITC). The number of fraud incidents rose from 11,532 in Q2 2024 to 19,007 in Q3 2024.
Additionally, the amount involved in fraud attempts skyrocketed to N115.9 billion in Q3, marking a 105% jump from the N56.6 billion recorded in the previous quarter.
However, banks successfully minimized actual losses, with only N10.1 billion lost to fraud in Q3 2024. This represents a 75.4% decline compared to the N42.8 billion lost in Q2.
Despite this progress, Nigerian banks have cumulatively lost an estimated N53.4 billion to fraud in the first nine months of 2024, underscoring the growing threat of financial crimes and the need for heightened vigilance.
Moniepoint’s Security Measures
Moniepoint has been proactive in addressing these challenges. It has implemented robust mechanisms for secure transactions, including requiring identity verifications like BVNs (Bank Verification Numbers) and NINs (National Identification Numbers) before account creation.
The company’s advice to users underscores the importance of personal responsibility in preventing fraud. Users are encouraged to avoid exposing their account details publicly, especially on social media or unsecured forums. Moniepoint also advises swift reporting of suspicious activities to its customer service channels to prevent unauthorized access to accounts.
Broader Implications for Financial Safety
The fintech boom in Nigeria has democratized financial services, but it has also expanded the attack surface for fraudsters. As digital financial tools become more ubiquitous, safeguarding personal financial data becomes imperative. This requires not only institutional vigilance but also user education on best practices for financial security.
Moniepoint’s appeal is part of a broader industry effort to enhance digital safety and sustain trust in Nigeria’s burgeoning fintech ecosystem. Users are urged to follow secure practices, like using strong passwords, enabling two-factor authentication, and staying informed about potential scams.
By adhering to these practices, the risk of fraud can be significantly mitigated, ensuring a safer digital financial environment for all stakeholders.
