PalmPay, NFIU partner to tackle financial fraud

PalmPay, a Nigerian fintech company, will be collaborating with the Nigerian Financial Intelligence Unit and other government agencies to tackle financial fraud and strengthen the country’s digital financial ecosystem through technology.

According to the fintech in a statement on Friday, the pledge was made during a courtesy visit by PalmPay’s Managing Director, Chika Nwosu, and his management team to the Nigerian Financial Intelligence Unit headquarters in Abuja.

It noted that the visit highlighted PalmPay’s dedication to supporting Nigeria’s anti-fraud and anti-money laundering initiatives.

In his remarks, Nwosu emphasised the importance of a secure financial environment in fostering a thriving digital economy.

“At PalmPay, we believe that a secure financial ecosystem is the foundation for a thriving digital economy. Our partnership with the NFIU underscores our dedication to supporting Nigeria’s anti-fraud and AML efforts. Together, we aim to ensure a safer digital experience for all Nigerians,” he stated.

Nwosu also noted that the exponential growth in electronic payment transactions across Nigeria had brought new challenges to the financial system.

He further stressed the need for proactive and innovative measures to address those emerging threats and ensure a secure digital payment landscape.

Palmpay outlined plans to work with the NFIU through knowledge-sharing, training programmes, and innovative solutions to combat digital financial fraud.

According to Sumsub, a global full-cycle verification platform, Nigeria recorded the highest average fraud rate in 2024 at 5.91 per cent in Africa, doubling from the previous year.

Nigeria Inter-Bank Settlement System in its annual fraud landscape for 2023 stated there was a six per cent decline in fraud count and actual loss in 2023, compared to the previous year.

Responding, the Chief Executive Officer of the NFIU, Hafsat Bakari, commended PalmPay for its proactive approach to financial security and its alignment with both national and international regulatory standards.

She highlighted the crucial role of private-sector partnerships in enhancing the government’s efforts to combat financial crimes.

“Collaboration between private sector players and government institutions is vital to creating a financial system that is resilient, secure, and transparent,” Bakari said.

She lauded PalmPay’s innovative measures and commitment to building a financial ecosystem where trust and security drive growth.

Bakari emphasised the need for continuous collaboration to keep pace with the evolving tactics of fraudsters.