Telcos urged to prevent mobile money fraud

Dar es Salaam. Users of communication services in Tanzania are drawing attention to the need for a more thorough strategy to combat fraud in response to the recent fines of Sh2.085 billion imposed on five telecommunication operators for breaking the Sim Card Registration Regulations.

They believe that the fines, which are meant to stop fraud in the industry, are not enough to deal with the problem as it is becoming worse.

The Tanzania Communications Regulatory Authority (TCRA) reported a staggering 73 percent increase in fraud incidents during the fourth quarter of 2023, recording a total of 21,788 cases compared to 12,603 in the same period in 2022.

Speaking with the fraud victims and telecom service users, concerns were raised about the inadequacy of fines as a solution.

“I was once defrauded of five thousand Tanzania shillings; the process of tracing this money until recovery is often discouraging. When you approach these mobile operators, they sometimes claim not to recognise the number or say it’s unregistered,” Aysher Hussein of Tandale said.

On the other hand, a resident of Ukonga, Godfrey Gozbert, shared that he doesn’t think the telecommunication operators will be able to feel the pain of their customers through the fines they impose.

“I believe those telecommunication operators will be able to pay it. What’s important is that these companies need to take swift action and improve the process of tracking and refunding customers who have been defrauded. Taking actions such as providing prompt assistance and enhancing the refund system can help restore customer trust and ensure justice is served,” he explained.

Morogoro resident Calvin James shared that, despite the fines, more education is needed to ensure that people are safe from fraud.

“More education is needed because sometimes these scammers are really intelligent when it comes to knowing your details, which brings you into their targets. And quick help for guidance on what to do next is what is important for this individual to have their money back,” he shared.

As we are advancing in technological development, where artificial intelligence is now taking bigger steps, users’ worries about fraud will also increase.

To guarantee the safety of individuals against fraud, TCRA has extensively utilised text messaging technology to distribute educational messages on safeguarding against fraudulent activities.

Speaking to the CEO of Mtabe Innovations, Edward shared that as we progress towards a developed AI society, it’s crucial to understand how the innovation will benefit both positive and negative aspects.

“This innovation implies that while the ease of committing fraud increases with technological advancements, there is a simultaneous race between those intending to commit crimes and those working to mitigate them. It is essential for the “good guys” to act swiftly in making sure that people are safe,” he said.

Mr Edward further added that this is a wakeup call for the service providers.

“It is up to these server providers to integrate AI in a way that detects and prevents fraud and cybercrime well before reaching end-users. Whether it is through SMS or social media, companies should use AI for robust screening to ensure malicious content is intercepted before reaching the end user,” explained Mr. Edward.

He also recommended the need for extensive education because not all citizens are tech-savvy.

“This creates an opportunity for innovators to develop user-friendly AI tools that empower individuals to reduce cybercrime and fraud in their daily interactions,” he shared.