Telecommunications giant, MTN, has stated that fraudulent activities in Mobile Money (MoMo) transactions are significantly impeding efforts to deepen financial inclusion in the country for economic development.
MoMo fraud has become prevalent, particularly among those who are unable to read.
Despite MTN’s success with mobile money services since 2009, financial scams have continued to proliferate on the mobile money platform, with numerous subscribers falling victim.
For instance, the Bank of Ghana (BoG) fraud report indicates that 12,350 cases of MoMo fraud were reported in 2021, while 12,166 cases were reported in 2022. This represents a marginal decrease of 184 cases (2%) between 2021 and 2022.
Fraud incidents are generally underreported, as companies often fear losing customers if such incidents are disclosed. However, BoG has engaged financial entities to implement stringent measures to mitigate the impact of MoMo fraud.
At a market launch celebrating the company’s 15th anniversary in Ho, the Chief Executive Officer of Mobile Money Limited, Mr. Shaibu Haruna, stated that the company considers fraud prevention a high priority and is therefore enhancing its security systems and collaborations.
In addition to this, he mentioned that they continue to promote widespread public education. “Fraud remains a prevalent issue that continues to hinder our work of promoting digital and financial inclusion in the country.
“MoMo fraud is an issue we are very passionate about at Mobile Money LTD. We will continue to work with all stakeholders through sensitization and awareness initiatives and will continue to invest in robust security measures to combat it and protect our valued customers,” he said.
Customers of the MoMo service were advised to be vigilant in their use of the platforms. Mr. Haruna emphasized that, “every customer is the first and last line of defense. We need to protect our PINs, avoid clicking on unsolicited links, responding to fake SMS messages, or following the instructions of any random caller.”
The Chief Executive credited Ghanaians for the growth in mobile financial transactions. He added that the diversification of Ghana’s financial sector stands as a testament to the visionary establishment of MoMo, which also drives convenience across various sectors to improve the quality of life.
“When we embarked on this journey 15 years ago, the landscape of financial services in Ghana was vastly different. Traditional banking services were inaccessible to a significant segment of the population, particularly those in rural and underserved areas.
“Many Ghanaians faced challenges in conducting basic financial transactions, which hindered economic growth and personal empowerment. We recognized this gap and took on the challenge to make a meaningful difference by driving change and bringing financial services to the fingertips of every Ghanaian through the power of the mobile phone.”
“MoMo was born out of a vision to democratize access to financial services. Today, MoMo is more than just a mobile money service. It is a platform that has empowered individuals, transformed businesses, and strengthened communities. We have witnessed how MoMo has enabled small and medium-sized enterprises to thrive by providing them with the tools they need to manage their finances more efficiently.
“We have seen how it has facilitated access to education, healthcare, and essential services, improving the quality of life for countless families. Also, access to government services has been simplified through the ubiquitous power of MoMo, enabling government agencies to collect taxes, levies, and fees seamlessly. Clearly, MoMo has bridged the gap between the banked and the unbanked, bringing financial inclusion to the forefront of our nation’s development agenda,” the CEO said.
