PalmPay Unveils Robust Strategies to Tackle Digital Payment Fraud in Nigeria

Written By: Flipbz.org

PalmPay, a prominent neobank, has announced a comprehensive set of measures to combat the rising tide of digital payment fraud in Nigeria. This is outlined by Managing Director Chika Nwosu in a press statement.

Nwosu highlighted that PalmPay’s multi-faceted approach has set a benchmark for secure fintech operations in Nigeria. By leveraging advanced technologies such as artificial intelligence (AI), biometric authentication, and two-factor authentication (2FA), alongside proactive user education campaigns, the company has significantly reduced fraud risks. “Investing in real-time security tools and fostering transparent communication with users is critical,” Nwosu said. “Collaboration with regulators further strengthens trust and compliance within Nigeria’s digital payment ecosystem.”

The rise of mobile banking has made digital transactions faster and more accessible for millions of Nigerians, but it has also fueled an increase in fraud, creating significant challenges for users. Nwosu noted that while some accounts may be frozen due to suspected fraud, other reasons—such as unverified identities, incomplete documentation, regulatory requests, or prolonged inactivity—can also trigger suspensions. He clarified that when a suspicious transfer is flagged, only the specific amount in question is frozen if the account balance allows, rather than locking the entire account. In cases of insufficient funds, temporary suspensions may occur pending investigation.

PalmPay’s anti-fraud framework includes several cutting-edge measures:

1. Biometric Authentication and Phone-Binding: Ensures only authorized users can access accounts.

2. AI-Powered Anomaly Detection: Monitors transactions in real time to flag and prevent unusual activity.

3. Two-Factor Authentication (2FA): Adds an extra layer of security to protect user accounts.

Despite these robust safeguards, PalmPay emphasized that user vigilance remains essential. Sharing login credentials, one-time passwords (OTPs), or personal details can expose accounts to risks, even with advanced protections in place.

To further empower users, PalmPay has rolled out initiatives like Anti-Fraud Awareness Week, which educates customers on safe transaction practices. By combining technology, user education, and regulatory compliance, the fintech platform is working to minimize fraud risks and enhance confidence in digital payments.

For users concerned about compromised accounts, PalmPay advises immediate action by contacting their Customer Service line at 0201888688 or emailing the Fraud Desk at [email protected].

As Nigeria’s digital payment landscape continues to expand, PalmPay’s proactive measures aim to safeguard users and reinforce the integrity of the country’s fintech ecosystem.