Wema Bank is taking a strong stance against financial crime following significant losses of N685 million, due to fraudulent activities in 2023.
In recent actions to combat fraud, the Nigerian bank recently suspended seven fintech partners from its payment gateway platform following a surge in fraudulent transactions linked to their wallet accounts.
The bank’s investigations revealed non-compliance with Know-Your-Customer (KYC) guidelines set by the Central Bank of Nigeria (CBN) as a contributing factor.
Wema Bank recognizes the importance of customer awareness in the fight against fraud, and so they recently launched an anti-fraud campaign aimed at educating customers on how to identify and prevent fraudulent activities on their accounts. This initiative empowers customers to stay vigilant against evolving fraudster tactics. The bank is actively auditing and reviewing the practices of remaining fintech partners to ensure adherence to regulations and KYC compliance.
Wema Bank’s actions highlight the ongoing challenge of fraud within the Nigerian e-payments sector. Despite the bank’s significant loss in 2023, the Nigeria Inter-Bank Settlement Systems (NIBSS) reported an 89% increase in electronic transactions in Q1 2024, reaching ₦234 trillion. This growth trend extends to mobile money operators (MMOs) like OPay and PalmPay, which also witnessed a rise in transactions during the same period.
The surge in e-payments signifies the growing popularity of digital financial services in Nigeria. However, it also underscores the need for robust security measures to combat fraud and maintain consumer confidence. Wema Bank’s proactive approach serves as a positive example for other financial institutions within the Nigerian landscape.