Cybercrime and Your Money: What You Need to Know

Is Your Money Safe or at Risk? The Growing Threat of Online Fraud

Thursday, March 13, 2025

The rise of digital financial transactions has revolutionized Tanzania’s economy, providing millions of people with unprecedented access to financial services. This digital transformation has significantly improved financial inclusion and reshaped the financial landscape. However, this success comes with a growing challenge—online fraud driven by artificial intelligence (AI).

The Growth of Digital Financial Services and the Threat of Fraud

According to the FinScope Tanzania 2023 report, more than 72% of Tanzanians use mobile money services, making them an integral part of daily financial transactions. While digital financial services offer convenience, cybercriminals are leveraging advanced technologies to outsmart existing security measures, putting people’s money at risk.

The Global Cybersecurity Outlook 2025 report by the World Economic Forum highlights that nearly half of the institutions surveyed consider AI-driven cyber threats—including deepfakes and online fraud—as their greatest security risks. Cybercriminals now use AI to impersonate customer service representatives, banks, and even government agencies, deceiving users into disclosing sensitive information such as passwords and personal identification numbers (PINs).

The Rising Cases of Online Fraud

Data from the Tanzania Communications Regulatory Authority (TCRA) shows that cases of online financial fraud increased from 12,603 at the end of 2022 to 21,788 by the end of 2023. Many of the victims are women, the elderly, and rural residents, who often lose their savings through sophisticated scams.

A public awareness campaign conducted in November 2024 revealed that many people lack sufficient knowledge of the importance of safeguarding their PINs. Some users even entrust their phones to relatives or friends to conduct transactions on their behalf, unaware of the risks involved.

Recognizing this challenge, telecommunications companies such as Vodacom have launched awareness initiatives through radio programs, public meetings, and security alerts to educate customers on the importance of keeping their PINs private.

The Evolving Nature of Online Fraud

Beyond individual scams, online fraud is now being orchestrated by sophisticated criminal networks. The emergence of “Cybercrime-as-a-Service” platforms allows even those with minimal technical knowledge to launch cyberattacks easily.

If the public loses trust in digital financial services, the consequences will extend beyond personal financial losses: economic growth will slow, financial inclusion will decline, and digital progress will suffer a significant setback.

Efforts to Combat Online Fraud

Efforts to counter these threats are ongoing but need to be intensified. Telecommunications companies, in collaboration with TCRA, have launched campaigns such as #Sitapeliki, SMS alerts, radio programs, and partnerships with security agencies to help users recognize and report fraudulent activities.

However, the rapid advancement of AI-driven fraud requires more than just awareness campaigns. Cybercriminals are constantly innovating, while legal and enforcement frameworks struggle to keep up. Tanzania must invest in robust cybersecurity infrastructure, equip law enforcement officers with modern tools to combat cybercrime, and revise legal frameworks to impose stricter penalties on digital fraudsters.

Cross-Sector Collaboration: The Best Defense Against Cybercrime

Collaboration between stakeholders in the telecommunications sector, financial institutions, government agencies, and international partners is essential in the fight against online fraud. Investing in new technologies such as biometric verification and AI-driven monitoring systems can help reduce fraudulent activities.

However, online fraud is not just a technological challenge—it is a test of a nation’s resilience against digital threats. Strengthening legal frameworks, fostering innovation, and enhancing cooperation between the private sector and the government will ensure a secure digital financial future for Tanzanians.