Mobile money has been a major change in how people in Kenya do their transactions. It has made it possible for millions of people to send, receive and save money without any inconvenience. But the growth in digital transactions has also led to a proportionate increase in fraud cases.
There are criminals who take advantage of the situation by using various tricks that are likely to work mobile service providers to steal their information or money.
Among the frauds that are reported are deceiving texts, counterfeit applications, SIM swap scams and the perpetrators pretending to be service providers or the government. The victims are usually sent messages that they have won something, they need to verify the account or that there is an urgent payment request and hence they give out their PINs or authorize transfers without realizing it.
Money regulatory bodies and mobile service providers are cooperating in awareness programs to warn the public about these threats. Customers are encouraged to keep their PINs to themselves to only use legitimate apps and to report any doubtful transactions without delay. Besides this two-factor authentication and security settings if used properly can provide added security.
While on the one hand mobile money has made it possible for the previously unbanked to have access to financial services it is not without its flaws which require the user to be extremely vigilant. The wise thing to do is to educate and inform the vulnerable groups so that the losses can be minimized. At the same time local authorities also have plans to tighten up the rules so that the fraudsters can no longer take advantage of the gaps in mobile payment systems.
On top of the dangers that come with it mobile money is still the major driver of the Kenyan economy. It is very helpful in businesses, the payment of bills and transfers even in the most far-off villages. With the combination of technology and education the platform will not only survive but also be able to continue providing security to the money of Kenyans.
