When people think about fraud, their minds jump straight to identity theft or the typical online scam. And sure, those are real issues, but during our recent conversation on AFRICA FINANCIAL SUMMIT at Casablanca, we were able to delve deeper into the real problem: the rapid evolution of fraud without us realizing it, even when it happens right in front of us.
Fraud is more than just identity theft
Today, fraud goes beyond name theft or hacked accounts. Criminals are becoming creative, understanding how systems work and trying to exploit their weaknesses to their advantage. For example, we have recently dealt with cases involving multiple accounts, where fraudsters control an entire network to make it appear normal until the exact moment they commit the crime. When transactions are mixed in with the rest, it is much more difficult for financial institutions to detect suspicious activity in time. That is why it is so important to act at the moment of prevention, when no crime has yet been committed.
Fraudsters will always try to outsmart the system
Here’s the tough part: no matter what controls you put in place, fraudsters will try to find a way around them. If banks wanted zero fraud, they could just offer fewer services… but that’s obviously not an option. Africa’s banks and fintechs are under huge pressure to expand, innovate, and bring more people into the financial system.
That’s exactly why financial services security in Africa needs to be flexible and adaptive. Static rules won’t keep up. What will keep institutions safe is the ability to learn, adjust, and respond in real time, just as fraudsters do.
