Mobile fraud attempts drop as awareness and reporting improve

Dar es Salaam. Tanzania has witnessed a 19 percent decline in attempted mobile money fraud between March and June this year—a trend that analysts attribute to heightened public awareness, strengthened regulatory oversight, and tighter internal controls by certain mobile network operators.

The latest performance report from the Tanzania Communications Regulatory Authority (TCRA) reveals that reported fraud incidents dropped from 17,152 in March to 13,837 in June.

This decrease is largely credited to the national Sitapeliki campaign, which seeks to empower mobile users to identify and report suspicious activity. This initiative, alongside digital reforms enabling the swift flagging and tracing of fraudulent transactions, appears to be bearing fruit.

The reduction comes at a time when mobile money remains a cornerstone of financial inclusion in Tanzania, supporting everything from everyday purchases and utility payments to cross-border remittances.

As the digital economy expands, experts emphasise that consumer trust is indispensable—making the recent figures a potential turning point in public confidence.

According to TCRA, three operators—Airtel, TTCL, and Yas—registered notable progress in curbing fraud attempts. Airtel’s reported cases declined by 56 percent, from 5,876 in March to 2,595 in June.

TTCL reported a 58 percent drop, from 3,925 to 1,658. Yas, meanwhile, saw a marginal decrease of 0.2 percent—from 2,484 to 2,478. These improvements underscore the impact of targeted security protocols and proactive customer engagement.

However, not all providers fared as well. Vodacom recorded a 34 percent surge in reported fraud cases, from 3,143 in March to 4,224 in June. Halotel, too, experienced a substantial increase—from 1,724 to 2,882.

The divergent trends highlight disparities in the effectiveness of fraud prevention systems and customer sensitisation campaigns. They also raise pertinent questions about internal oversight and how well telecom firms are adapting to increasingly sophisticated cyber threats.

Regionally, the distribution of mobile fraud cases remains uneven. Rukwa topped the list with 4,353 reported incidents, followed closely by Morogoro (4,285), Dar es Salaam (1,152), and Mbeya (803). These figures suggest that, while urban centres remain vulnerable, rural and peri-urban areas are increasingly being targeted—likely due to limited digital literacy and lower access to consumer education.

While stakeholders have welcomed the improvements, they remain cautiously optimistic. Digital finance advocate Said Maulid noted that although the current SMS-based reporting mechanism has been useful, more streamlined options are needed.

“The system should facilitate immediate reporting the moment a user receives a suspicious message,” he said, calling for fraud reporting capabilities to be integrated into mobile applications and USSD platforms.

The impact of anti-fraud measures is also reflected in broader data on financial crime. The 2024 National Crime Report by the police indicates that losses from digital fraud decreased from Sh5.06 billion in 2023 to Sh5.32 billion in 2024.

Though the reduction is modest, experts believe it signals a shift in the right direction, pointing to the growing effectiveness of fraud prevention efforts.

ICT analyst Anania Kapala sees the development as a positive step for the digital economy.

“When people believe their money is safe, they are more inclined to embrace digital platforms,” he said.

He added that digital wallets offer enhanced security compared to carrying physical cash. However, he also warned that widespread adoption hinges on affordability and system reliability.

“High transaction fees and network downtimes still deter many low-income users from fully embracing digital payments,” he noted.

Kapala further urged mobile users to adopt basic safety habits, such as regularly updating PINs and verifying recipient details before making transactions.

“Fraudsters rely on speed and negligence. Changing your PIN frequently is a simple yet powerful defence,” he advised.

As Tanzania accelerates towards a cash-lite economy, the ongoing fight against mobile money fraud is proving to be a pivotal battleground.

Experts agree that while the recent reduction in cases is encouraging, maintaining this momentum will require continued investment in cybersecurity, public awareness, and collaboration across government and industry. Without such commitment, the full promise of the digital economy may remain unrealised.