In a bid to maintain integrity and security within its operations, Wema Bank, a leading commercial bank in Nigeria, has recently undertaken decisive measures against fraudulent activities perpetrated by some of its fintech partners. The institution has removed or suspended seven fintech partners from its payment gateway platform due to their involvement in fraudulent activities, marking a significant step in its ongoing efforts to combat financial fraud and safeguard the interests of its customers.
The catalyst for these actions stems from a substantial loss incurred by Wema Bank amounting to ₦685 million (~$595,000) as a result of fraud and forgery during the previous year 2023, highlighting the pressing need for gripping measures to mitigate such risks. Consequently, the bank initiated an anti-fraud campaign aimed at fortifying its defenses and protecting customers from malicious activities.
Recent observations revealed a concerning trend of fraudulent inflows into specific wallet accounts managed by select fintech partners utilizing the bank’s third-party wallet accounts. Following a meticulous investigation, Wema Bank took decisive action by suspending four fintech firms from its platform and permanently removing three others found to be complicit in fraudulent practices. This proactive approach underscores the bank’s unwavering commitment to upholding ethical standards, regulatory compliance, and customer trust.
Oluwole Esomojumi, Chief Audit Executive at Wema Bank, emphasized the significance of these measures in combating fraud and reinforcing the bank’s dedication to maintaining a secure financial ecosystem. Esomojumi remarked, “We are steps ahead on our end, which is why we have taken time to investigate our fintech partners, and those found culpable have been disengaged from our payment gateway platform.”
Furthermore, Wema Bank reiterated its commitment to conducting thorough audits and reviews of its fintech partners’ processes to ensure adherence to established standards and mitigate future risks. This comprehensive approach reflects the bank’s proactive stance in identifying and addressing vulnerabilities within its operations, thereby bolstering its resilience against emerging threats.
The anti-fraud campaign launched by Wema Bank seeks to empower customers with the necessary knowledge and tools to detect and mitigate fraudulent activities effectively. Through educational initiatives and awareness-raising efforts, the bank aims to equip customers with the insights needed to safeguard their financial assets and personal information from malicious actors.
