Expert Stresses Vital Role of Digital Literacy in Curbing Online Frauds
Chika Nwosu, the Chief Executive Officer of PalmPay, a leading fintech company in Nigeria, has underscored the urgent need for digital literacy among consumers as a crucial strategy to combat the rising wave of online frauds in Nigeria.
Addressing attendees at the 4th Africa Financial Technology Congress in Lagos, Nwosu emphasized that enhancing digital literacy is paramount, especially in light of recent data indicating a significant shift towards electronic transactions in Nigeria, previously dominated by cash transactions.
He highlighted that many individuals fall victim to online fraudsters due to their lack of awareness.
Nwosu stressed the importance of online safety and security consciousness, offering practical advice to consumers. He stated, “Being safety-conscious online can be as simple as implementing a two-step verification process on platforms like WhatsApp to thwart hackers.
“In most cases, fraud requires some form of consent, either knowingly or unknowingly, from the consumer”.
The PalmPay CEO also acknowledged the emergence of various threats, including fake news dissemination, personal data leaks, and financial scams, as a consequence of the rapid expansion of digital connectivity.
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He assured that Nigerian banks and fintech companies have invested heavily in infrastructure to protect customer accounts, detect fraud, and minimize risks. Nwosu further noted that, even in cases of fraud, swift detection and resolution mechanisms were in place.
Nwosu elaborated on PalmPay’s risk management strategy, which involves analyzing user identities, network preferences, behaviors, device usage patterns, and core data to establish a robust closed-loop process for effective risk control.
Utilizing this approach, PalmPay has been successful in swiftly identifying and addressing concerns such as fake accounts, fraudulent marketing activities, and security breaches, such as port scans and credential stuffing.
Nwosu also revealed PalmPay’s commitment to user education, citing the company’s monthly “Wallet Safety Workshop” campaign aimed at raising payment security awareness and empowering users to recognize and avoid online scammers
.A recent report from the Financial Institutions Training Centre (FITC) for Q2, 2023, revealed a staggering 276.98% increase in fraud cases in Nigerian banks during this period. This surge is attributed to the growing adoption of internet connectivity and digital payment solutions in Nigeria, which has unfortunately paved the way for a surge in fraudulent activities.
