The Shocking Truth About Digital Payment Frauds in an Evolving Economy

Ethiopia's banking industry has been expanding steadily. Despite high inflation and low-interest rates, citizens are increasingly storing their money in bank accounts. The introduction of mobile banking and other digital payment systems has eased transactions, and large amounts of money are being exchanged on digital platforms. Although the digitization of the economy is in its initial stages, it has not been immune to fraudulent activities. A study conducted by Ethiopia’s Ministry of Justice indicated a staggering two billion birr was lost due to fraud in the past four years.

Fraud is not new in Ethiopia. Counterfeit documents and cheques have been used to defraud people. before. The fact that these new frauds are taking place in a nation that is still adjusting to regulations and digital banking systems makes customers more vulnerable.