PalmPay Raises Concern over Increasing Rate of Cyber Fraud

Emma Okonji

Following the penetration of digital payment platforms in Africa, a fraud epidemic has plagued the Fintech ecosystem in Nigeria, with Mobile, Web and Point of Sales (P0S) terminals being the most exploited channels by fraudsters in the country in 2023, PalmPay, a Fintech company has said.

Making reference to the 2023 NIBSS Annual Fraud Landscape report, where incidents of fraud loss via Internet Banking increased by 325 per cent between 2022 and 2023, PalmPay said the rise of digital payment platforms in Nigeria has increased the potential for cyber fraud, with Fintech companies now forced to balance between making payment apps user-friendly and prioritising users’ safety to stem increased cyber fraud.

To address the fraud epidemic, the Fintech Association of Nigeria (FintechNGR) plans to unveil a fraud reporting framework sometime this year, while Fintech platforms such as PalmPay continue to take the initiative to re-evaluate their in-app safety features to protect their users from the activities of fraudsters.

Managing Director, PalmPay, Chika Nwosu, said the reason why the Fintech platform has witnessed astonishing growth in four years was because “We prioritise the safety and security of our users.” He said they’ve been able to achieve this by “marrying security and safety with the customer experience to create a balance.”

Because it understands that curtailing fraud is a two-way street, PalmPay runs a

Wallet Safety Workshop to teach users of its app and POS machines various security topics covering payment security and common security issues in daily life, such as password management, fraud detection, phishing and risk identification,” Nwosu said.