Dar es Salaam. Despite recording massive profits in recent years, the banking sector has been contending with notable losses stemming from diverse forms of fraud, information from the Bank of Tanzania (BoT) indicates.
The consolidated summary of losses occasioned by fraud in the banking sector shows an increase in incidences causing losses to the banking sector amounting to Sh2.64 billion by December 2023 from Sh2.42 billion at the end of the first quarter. This was an increase of 8.8 percent in 2023.
Fraudulent activities in mobile and internet banking remained the most prevalent, causing losses amounting to approximately Sh1.65 billion by December 2023, a slight decrease from Sh1.66 billion recorded at the end of the first quarter of the same year, the consolidated data issued by the BoT on March 5, 2024 indicate.
Although there was a 65 percent decrease in internal staff fraud from September to December, with losses totaling Sh469.39 million, the sector still grapples with significant insider threats.
The reported figure marked an 8.6 percent increase from the beginning of the year, when Sh431.9 million in losses were recorded.
ATM card skimming incidents witnessed a troubling 60 percent increase, reaching Sh159.87 million by the end of 2023.
This figure surpasses the Sh99.64 million recorded in September and was also a twofold increase from the Sh57.46 million reported in March 2023.
Speaking to The Citizen, seasonal banker and analyst Mr Kelvin Mkwawa sheds light on the evolving landscape and the urgent need for robust preventative measures.
“ATM card frauds are increasingly linked to the surge in e-commerce and online payments, posing a significant risk to customer information,” said Mkwawa, adding that the widespread use of tap-in cards has exacerbated the situation.
Mkwawa also highlighted the prevalence of business compromise scams, which involve perpetrators issuing emails to banks and soliciting customer information.
He underscored the insidious threat of account takeover fraud, primarily orchestrated by insiders within banking establishments.
“Dormant accounts are particularly vulnerable targets for these illicit activities,” he said.
Regarding the proliferation of mobile banking fraud, Mr Mkwawa elucidated the sophisticated tactics used by cybercriminals.
He said customers may unknowingly receive malware-infected links, facilitating unauthorised access to their financial data.
There is also loan fraud, where fraudsters exploit the identities of reputable companies to secure loans for fictitious employees.
“The adoption of sophisticated security measures is paramount to thwarting increasingly sophisticated cyber threats,” he asserted.
Beyond technological safeguards, Mkwawa stressed the importance of enhancing financial literacy among users to bolster awareness and promote proactive measures to safeguard sensitive financial information.
“Banks must also prioritise the recruitment and training of personnel committed to maintaining the highest ethical standards,” he said.
For his part, the Chief Executive Officer of the Tanzania Bankers Association, Tuse Mwaikasu, told Mwananchi that he could not comment on the matter because it was not public information.
“Bankers would be more appropriate to address this matter, as they possess the expertise and first-hand knowledge on the subject,” said Mwaikasu.
Despite the overall surge in fraud incidences, there was a notable decline in forged checks and TISS (Tanzania Inter-bank Settlement System) fraud by 66 percent, closing at Sh11.3 million in December 2023 from Sh34 million recorded in March of the same year.
Similarly, September saw a 45 percent drop from sh20.9 million, reflecting positive strides in combating certain types of fraud.
Moreover, 2023 witnessed zero armed robbery incidences targeting banks, suggesting a shift in tactics among criminals towards more technologically-driven forms of fraud.
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Tanzania Confirms Outbreak of Marburg Virus Disease
Dodoma — Tanzania today confirmed an outbreak of Marburg virus disease in the northwestern Kagera region after one case tested positive for the virus following investigations and laboratory analysis of suspected cases of the disease.
President of the Republic of Tanzania, Her Excellency Samia Suluhu Hassan, made the announcement during a press briefing alongside World Health Organization (WHO) Director-General, Dr Tedros Adhanom Ghebreyesus, in the country’s administrative capital Dodoma.
“Laboratory tests conducted in Kabaile Mobile Laboratory in Kagera and later confirmed in Dar es Salaam identified one patient as being infected with the Marburg virus. Fortunately, the remaining suspected patients tested negative,” the president said. “We have demonstrated in the past our ability to contain a similar outbreak and are determined to do the same this time around.”
A total of 25 suspected cases have been reported as of 20 January 2025, all of whom have tested negative and are currently under close follow-up, the president said. The cases have been reported in Biharamulo and Muleba districts in Kagera.
“We have resolved to reassure the general public in Tanzania and the international community as a whole of our collective determination to address the global health challenges, including the Marburg virus disease,” said H.E President Hassan.
WHO is supporting Tanzanian health authorities to enhance key outbreak control measures including disease surveillance, testing, treatment, infection prevention and control, case management, as well as increasing public awareness among communities to prevent further spread of the virus.
“WHO, working with its partners, is committed to supporting the government of Tanzania to bring the outbreak under control as soon as possible, and to build a healthier, safer, fairer future for all the people of Tanzania,” said Dr Tedros. “Now is a time for collaboration, and commitment, to protecting the health of all people in Tanzania, and the region, from the risks posed by this disease.”
Marburg virus disease is highly virulent and causes haemorrhagic fever. It belongs to the same family as the virus that causes Ebola virus disease. Illness caused by Marburg virus begins abruptly. Patients present with high fever, severe headache and severe malaise. They may develop severe haemorrhagic symptoms within seven days.
“The declaration by the president and the measures being taken by the government are crucial in addressing the threat of this disease at the local and national levels as well as preventing potential cross-border spread,” said Dr Matshidiso Moeti, WHO Regional Director for Africa. “Our priority is to support the government to rapidly scale up measures to effectively respond to this outbreak and safeguard the health of the population,”
Tanzania previously reported an outbreak of Marburg in March 2023 – the country’s first – in Kagera region, in which a total of nine cases (eight confirmed and one probable) and six deaths were reported, with a case fatality ratio of 67%.
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In the African region, previous outbreaks and sporadic cases have been reported in Angola, the Democratic Republic of the Congo, Ghana, Kenya, Equatorial Guinea, Rwanda, South Africa and Uganda.
Marburg virus is transmitted to people from fruit bats and spreads among humans through direct contact with the bodily fluids of infected people, surfaces and materials. Although several promising candidate medical countermeasures are currently undergoing clinical trials, there is no licensed treatment or vaccine for effective management or prevention of Marburg virus disease. However, early access to treatment and supportive care – rehydration with oral or intravenous fluids – and treatment of specific symptoms, improve survival.
Source: allafrica.com
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