PalmPay Updates App, Secures 30m Customers Against Fraudsters

PalmPay said it fosters  a secured financial ecosystem by integrating safety features into its app so that its over 30 million customers who transact with the app are not exposed to the activities of fraudsters.

It added that the platform has provided a safe and trusted environment for its customers to carry out their financial transactions without any hassle.

PalmPay, it noted, employs a closed-loop risk management system that involves continuous monitoring, analysis, and response to fraud threats while allowing it to detect and prevent security risks in real-time as well as reduce the potential impact of fraud.

“In particular, to reduce incidents of fraud, protect their users from fraudsters, and provide a safe banking environment, PalmPay binds their users’ phones to the app and has an auto-logout and biometrics feature to confirm users’ identity,” it pointed out.

Speaking on the PalmPay safety features , the managing director, PalmPay, Chika Nwosu, said, the reason why the fintech platform has witnessed astonishing growth in four years was because “we prioritise the safety and security of our users.” He said they’ve been able to achieve this by “marrying security and safety with the customer experience to create a balance.”

Because it understands that curtailing fraud is a two-way street, PalmPay runs a Wallet Safety Workshop to teach users of its app and POS machines various security topics covering payment security and common security issues in daily life, such as password management, fraud detection, phishing and risk identification, he added.

The safety workshop, he stated, underscores PalmPay’s understanding of user security as an important part of curtailing fraud and encourages its users to ensure that they always secure their wallets using the several built-in safety features in its app.

A recent example was a series of campaigns encouraging its users to link their wallets with their BVN or NIN, following the directive by the Central Bank of Nigeria (CBN) for users of fintech platforms to link their wallets with their BVN or NIN.

Stressing that PalmPay users have several options for protecting themselves against fraudsters such as the two-factor verification process that makes it difficult for fraudsters to gain access to users’ apps without spooking them, he noted that, “In the first half of 2023, millions of users linked their secure email addresses to their PalmPay app. With this feature, PalmPay users effortlessly receive OTPs for their in-app login.”

On his part, Head of IT and Payments, PalmPay, Temitayo Oduwole, observed that customers do not take prompt action in incidents of fraud and that ‘Only 33 per cent report the same day or take the necessary right action on the same day.’

“Effective investigation into incidents of fraud begins when the user reports to their bank that fraud has occurred. However, fraud, if not reported within the hour the crime occurred, allows criminals to move the stolen funds to ‘safe’ places,” Oduwole disclosed.  Precaution, Oduwole said, remains the best remedy to protect oneself from cyber fraud.

Similarly, Anti-fraud expert, Tosin Adenekan warned fintech users against trusting strangers with their personal information when performing digital transactions.

According to Adenekan, “Users of fintech platforms owe it to themselves to follow standard safety precautions to avoid being defrauded by cyber criminals.

“Do not allow strangers such as POS operators to handle personal ATM cards. This is because cybercriminals often posing as helpful POS operators can exploit this to observe PIN entries and distract card owners, ultimately swapping ATM cards.”

She urged fintech users to “take steps to reduce incidents of fraud on their wallets by creating strong passwords, enabling the two-factor authentication features on their fintech app, monitoring their wallets for unauthorised transactions, and protecting their personal login information when in public from prying eyes.”

Other steps to take include “regularly updating their apps, setting limits for their wallets, staying alert for phishing attempts, getting the proper financial education, using secure internet connection, being aware of pop-ups and fraudulent emails, and ensuring that operating systems and internet connections are up to date,” she stressed.