In a proactive move to tackle the escalating cases of fraudulent withdrawals and the exploitation of pre-registered SIM cards for illicit wallet account openings, the Economic and Financial Crimes Commission (EFCC) recently conducted a meeting with representatives from telecommunications and financial technology companies (fintechs).
According to a statement issued by the EFCC spokesperson, Wilsom Uwujaren, the meeting took place in Kano on Tuesday. Uwujaren emphasized that the purpose of the gathering was to implore operators to implement robust measures capable of detecting and reporting suspicious transactions to law enforcement agencies.
The Zonal Commander, Farouq Dogondaji, stressed during the meeting that the commission’s engagement with these stakeholders was driven by growing concerns over the surge in fraudulent activities. Dogondaji highlighted a clear pattern indicating that fraudsters were increasingly drawn to fintechs due to identified vulnerabilities.
Providing valuable insights, Musa Olalekan, the Head of Cyber Crime Section at the Kano Command, revealed that a significant majority of the cases received by the command were linked to fraudulent withdrawals, with the culprits primarily utilizing wallet accounts. Olalekan further explained that fraudsters favored fintechs over Deposit Money Banks due to the latter’s superior adherence to regulations but weaker Know Your Customer (KYC) processes.
Unmasking the fraudsters during investigations posed a substantial challenge as they frequently employed pre-registered SIM cards in their fraudulent activities. Recognizing this obstacle, the EFCC urged operators to implement measures aimed at identifying and promptly reporting suspicious transactions to law enforcement agencies.
During the engaging session, representatives from the telecommunications and fintech companies shared their experiences and the challenges they faced in their respective industries. Notably, they shed light on the vulnerabilities and loopholes in their systems that cybercriminals exploited, including identity theft, phishing, and hacking.
However, these stakeholders expressed their willingness to collaborate closely with the EFCC and other relevant parties to eradicate these vulnerabilities and combat financial crimes effectively.
Prominent participants at the meeting included representatives from major telecommunication companies such as MTN, Airtel, and 9mobile, as well as prominent fintech companies including Opay Digital Services, Palmpay, Flutterwave, and Kuda Microfinance.
The EFCC’s engagement with these critical industry players signals a concerted effort to strengthen the fight against fraud and financial crimes, ultimately aiming to safeguard the interests of individuals and organizations alike.
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