Telecom operators in Africa are facing a significant challenge with mobile money fraud as they invest more in this sector. The Global System for Mobile Communications Association reported that mobile money fraud in Africa has surpassed $1 billion, raising concerns about security issues hindering the growth of mobile money services.
Operators, especially emerging telcos, are urged to prioritize security measures to safeguard their increasing number of subscribers from fraudsters who are constantly evolving their tactics. With high costs in deploying network technologies and slow revenue growth, telcos are turning to mobile financial services for growth.
Safaricom’s M-Pesa and MTN’s MoMo have seen significant revenue growth, with the latter receiving a substantial investment from Mastercard, elevating its value. Airtel is also exploring opportunities for a public listing of its mobile money business, SmartCash.
The number of registered mobile money accounts has surpassed 1.6 billion, with a surge of 400 million new accounts during the COVID-19 pandemic. Daily global transaction values have exceeded expectations, reaching over $3.45 billion by the end of 2022.
As the number of mobile money subscribers in Africa is projected to exceed 800 million by 2025, telcos are under pressure to enhance the security of their financial services. Stricter regulations are being introduced by African governments to combat fraud and improve tax collection, adding complexity for telecom operators.
To address these challenges, Itemate Solutions offers a technology solution to help telcos comply with regulations and protect customer data. The platform integrates AI-driven validation and audit trails to ensure regulatory compliance without compromising security or user experience.
Ensuring the protection of subscribers from fraud while navigating new regulations will be crucial for the long-term success of African telcos expanding into mobile financial services.