Technology savvy fraudsters prey on M-pesa’s runaway success

Mitigating cyber crime risk is expected to become a priority operation for players in the financial industry in the coming months as internet use grows and technology becomes the main driver of the business.

Controlling the number of points where customers can access their cash either through their phones, credit cards, or ATM cards is becoming the single biggest challenge for players in the financial sector.

With over 30,000 merchants or agents now providing some kind of financial service, establishing how to stem the flow of fraud incidents emanating from the outlets is now a focus for the industry which is being hit hard by rising incidents of fraud.

“We are telling the banks that up to 80 per cent of fraud can be stopped at the merchant level. There is simply not enough education in the market,” said Reshma Sookran, fraud control executive, Visa Sub-Saharan Africa.

In response to the growing threat, many financial institutions are investing heavily in technological solutions that will help them track processes more efficiently.

Barclays, which claims to have the largest market share in the credit cards business invested in an enhanced card system dubbed Prime 3, which provides real-time account access.