YOUR HARD-EARNED MONEY, SAFE OR AT RISK? THE BATTLE AGAINST FRAUD

By Agapinus Tax, Risk & Compliance Director, Vodacom Tanzania PLC.

Mobile money has revolutionized financial transactions in Tanzania, providing millions with unprecedented access to financial services and reshaping the country’s economic landscape. With over 72% of Tanzanians now using mobile money platforms like M-Pesa, Mixx by Yas, and Airtel Money, according to the FinScope Tanzania 2023 report, these services have become essential lifelines. Yet, this transformative success story faces an urgent and growing threat: AI-driven fraud. As fraudsters leverage advanced technology to outpace traditional security measures, Tanzania’s digital economy stands at a crossroads. The decisions made today will determine whether mobile money continues to empower or becomes a vulnerability.

Advancing technology has dramatically shifted the landscape of cybercrime, enabling criminals to launch more convincing and harder-to-detect scams. The World Economic Forum’s Global Cybersecurity Outlook 2025 reveals that nearly half of surveyed organizations view adversarial AI, including deepfakes and AI-generated phishing schemes, as their top security concern. In Tanzania, where mobile money transactions are woven into everyday life, these threats hit very close to home. Scammers now use generative AI to mimic customer service agents, financial institutions, and even government agencies, fooling unsuspecting users into revealing sensitive information like PINs and passwords. The alarming rise in such tactics has been reflected in statistics from the Tanzania Communications Regulatory Authority (TCRA), which reports mobile money fraud cases increasing from 12,603 in late 2022 to 21,788 by the end of 2023. Behind these numbers are thousands of individuals—many of them women, the elderly, and rural residents—whose livelihoods are at stake.

One of the most startling discoveries from our fraud awareness market tour in November was the widespread lack of understanding about the importance of PIN security. Many users openly shared their PINs with others, either out of convenience, trust, or sheer unawareness of the risks. Some even vocalized their PINs loudly in crowded places, inadvertently inviting fraudsters to exploit them. The tendency to lend mobile devices to friends or relatives for transactions, without recognizing the associated risks, further compounds this issue. At Vodacom, we recognize that securing digital transactions goes beyond sophisticated systems; it requires empowering our customers with the right knowledge. Through on-ground market engagements and interactive radio sessions, we proactively educate users about mobile money security, emphasizing that a PIN is as sacred as a signature. However, is building awareness both on-air and in-person, enough to ensure that digital literacy becomes widespread, reinforcing the security of Tanzania’s digital economy at its very foundation?

Beyond individual actors, the evolution of cybercrime has given rise to organized networks operating through Cybercrime-as-a-Service platforms. These services allow even non-technical criminals to launch sophisticated attacks at scale. Fraudsters exploit regulatory gaps, user vulnerabilities, and a lack of coordinated response mechanisms, creating a climate of fear and mistrust. When consumers lose confidence in financial services, the repercussions extend beyond personal losses: economic growth stalls, financial inclusion reverses, and the country’s broader digital transformation suffers setbacks.

Efforts to combat this threat have been in place, but they must intensify. Mobile operators in partnership with the TCRA have spearheaded public awareness campaigns through SMS alerts, radio programs, and collaborations with law enforcement. These initiatives educate users on recognizing scams and reporting suspicious activities, which is crucial. However, with the fast evolving technology landscape, education alone cannot match the speed at which AI-driven threats evolve. Fraudsters operate with near impunity, often escaping legal consequences due to outdated laws and sluggish enforcement mechanisms. Strengthening cybersecurity infrastructure, empowering cybercrime units with advanced tools, and modernizing legal frameworks to impose stringent penalties for digital fraud must become national priorities.

Collaboration is key. Regulators, financial institutions, telecom operators, and international partners must forge stronger alliances to share intelligence, track fraudulent networks, and deploy advanced detection systems capable of intercepting scams before they reach consumers. Embracing innovations like biometric verification and real-time AI-driven monitoring tools can help stem the tide of fraud. However, technology must be matched with decisive political will and coordinated enforcement. Swift action against offenders sends a clear message that Tanzania’s digital economy will not be a haven for criminals.

Tanzania’s mobile money revolution has unlocked immense potential for economic inclusion and growth. Protecting this achievement requires urgency and unity. Fraud is not merely a technological challenge; it is a test of national resilience. By strengthening regulations, fostering innovation, and deepening public-private cooperation, Tanzania can safeguard its digital future. The fight against fraud is more than a defensive measure, it is an opportunity to build a more secure, inclusive, and prosperous digital economy. The time for decisive action is now.