TECHNOLOGY has woven itself into the fabric of our lives, transforming how we interact with everything, including our finances.

The fast pace of technical innovation in the financial services space has leaped from the age of the ATM to providing us with mobile banking apps, online banking platforms, payment applications, and other suit services offering unparalleled convenience. 

Depending on your choices, you can now effectively manage your financial affairs anytime and from anywhere. However, this revolution comes with a dark side – the growing threat of digital fraud.

Gone are the days of armed bank robberies, today's perpetrators operate through cables and internet connections, social media, and phones, siphoning funds without ever showing their faces. 

This reality is particularly concerning in Tanzania. Recent statistics from the Bank of Tanzania reveal a significantly higher proportion of digital frauds reported by banks and financial institutions and a staggering 84 percent increase in digital fraud during the last quarter of 2023. In total, this translates to a loss of 4.89 billion Tanzanian Shillings stolen through cyberspace alone in 2023.

This threat is not unique to Tanzania; it reflects a broader trend across Africa and the globe. 

The 2022 World Bank report 'Cyber Threats to the Financial Sector in Africa' warns that "Large-scale rapid digitalization of financial products provides new avenues of opportunity for threat actors. 

Greater levels of digitally enabled financial inclusion, coupled with customers who are unfamiliar with those products and services, open new targets for scammers. Digitalization also comes with an expanded supply chain, which will provide threat actors with new access vectors."

One of the most common scams used to access individual information and perpetrate theft is phishing. It involves tricking people into revealing credentials, bank details, or other personal information to the perpetrators. 

Email or SMS are sent to make recipients reveal sensitive information either by clicking a link to install key logging malware, inputting data into an unsecured web page, or just responding with the requested information. 

Beware of those urgent emails posing to be from your bank or giving you unusual sudden rewards and pressuring you to urgently provide information. Other variants include vishing which is the use of voice calls to attempt to get the same result.

Theft through ATM cards, either through skimming or social engineering is also a common occurrence. 

Beware who has access to your card, PIN, and the security of the environment where you use your ATM card.

Another area where individuals are vulnerable is the use of insecure online and mobile payment platforms to pay for goods and services locally and globally. 

Sometimes related directly to phishing but this could also just be a result of weak payment site security. 

Users should ensure they understand and trust the security behind platforms where their financial access details are used or stored.

Fortunately, there are steps that can be taken to combat this growing threat through a multi-pronged approach including state-of-the-art cyber security technology and robust authentication processes for digital banking.

These processes function as checkpoints, verifying a user's identity before allowing access to financial information and providing an extra layer of security making it significantly harder for fraudsters to breach accounts. 

It is important to note that the responsibility of safeguarding against digital fraud does not rest solely on the shoulders of financial institutions. The responsibility extends to every individual who engages in digital transactions. 

As consumers, we must exercise caution and remain vigilant against suspicious activity. 

Simple steps, such as being cautious against unusual emails, SMS, and calls, and not disclosing your personal and financial details in unsecure online platforms. In addition to that, as consumers we need to monitor account statements regularly, avoid sharing passwords and PIN access, and promptly report any anomalies. 

Such measures can help keep would-be fraudsters at bay or, at the very least minimize associated losses.

Embracing digital literacy is paramount for the user, educating ourselves about the risks and best practices of digital finance products and channels we use empowers us to make more informed and safer decisions and protect our financial assets. 

By working together, banks, financial institutions, and the public can create a more robust defense against digital fraud and embrace the evolution of technology for a safer and more prosperous future.

 Pamela Nnkya(pictured)  is the financial expert based in Dar es Salaam.