Mobile money, long hailed as a financial inclusion success story in East Africa, is now facing increased scrutiny after a new study highlighted security vulnerabilities in both Uganda and Kenya.
The report points to growing risks of fraud, cyberattacks, and weak regulatory oversight, raising fears over the safety of millions of daily mobile money transactions.
Key Security Risks Identified
- SIM card swapping fraud targeting unsuspecting users.
- Phishing scams exploiting unprotected mobile platforms.
- Regulatory gaps between telecom operators and financial institutions.
- Cross-border vulnerabilities as services expand regionally.
Impact on Users
In Uganda and Kenya, mobile money services such as MTN MoMo, Airtel Money, and M-Pesa handle billions of shillings daily. Any breach or fraud incident threatens not only individual savings but also regional trade and remittances.
Calls for Stronger Regulation
Experts and consumer groups are urging:
- Tighter cybersecurity measures from telecoms.
- Enhanced cooperation between regulators in Kenya and Uganda.
- Financial literacy campaigns to protect consumers from fraud.
Industry Response
Telecom operators have acknowledged the concerns and say they are investing in fraud detection systems and AI-driven monitoring tools to secure transactions.