PalmPay Raises Red Flag on Escalating Cyber Fraud as Banking Malware Attacks Increase by 8 Per Cent

• PalmPay has said that fraudsters primarily target the mobile, web, and point-of-sale (PoS) terminals
• This is amid a recent report that stated that the banking malware increased significantly despite an overall cut in threat
• The managing director, PalmPay said fintechs recorded growth in recent years because they prioritise growth

Legit.ng journalist Zainab Iwayemi has over three years of experience covering the Economy, Technology, and Capital Market.

PalmPay, a Fintech startup in Nigeria, has weighed in on the fraud epidemic since adopting digital payment systems throughout Africa.

ThisDay reported that the Fintech platform said the most often used channels for fraudulent activity in Nigeria in 2023 were mobile, web, and point-of-sale (P0S) terminals.

This coincides with an alleged rise in malware assaults targeting Nigerian banks, according to a New Telegraph report.

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Nigeria experienced a 10% reduction in total threats, according to Kaspersky's telemetry. But banking malware attacks—intended to obtain sensitive data, including online banking credentials, from compromised machines—saw an increase.

Digital payment platforms increase the risk of cybercrime

Citing the 2023 NIBSS Annual Fraud Landscape report, which showed a 325% increase in fraud loss incidents through Internet banking between 2022 and 2023, PalmPay stated that the emergence of digital payment platforms in Nigeria has raised the risk of cybercrime.

It added that Fintech companies are now obliged to balance improving the usability of payment apps and putting users' safety first to prevent cybercrime from increasing.

While the Fintech Association of Nigeria (FintechNGR) is expected to introduce a fraud reporting framework to combat the fraud epidemic, the company said PalmPay is already taking the initiative to review its in-app safety features to shield its users from fraudulent activity.

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According to Chika Nwosu, the managing director of PalmPay, fintechs have witnessed astonishing growth in four years because they prioritise the safety and security of users.

He said they have achieved this by marrying security and safety with the customer experience to create a balance.

PalmPay recognises that combating fraud is a two-way street.

Nwosu said, hence, it hosts Wallet Safety Workshops to educate users of its app and point-of-sale (POS) machines on a variety of security topics covering payment security and common security issues in daily life, like password management, fraud detection, phishing, and risk identification.

Palmpay, Opay announces account changes

Legit.ng reported that OPay and Palmpay have announced critical changes to how customers get verified on their platforms.

The two digital banking platforms changed in response to reports of loopholes exploited by fraudsters when opening accounts.

For Opay, there are changes in the identification method of securing bank accounts during the onboarding process.

Source: Legit.ng