Navigating rising tide of fraud in Africa's mobile banking boom

From SIM swaps to identity theft, fraudsters are exploiting Africa’s rapid shift to digital finance. Chenosis says integrating mobile network insights could stop the most expensive 3% of attacks.

By Nhlanhla Muthe

Chenosis is leveraging mobile network intelligence to help African banks close the costly “last 3%” gap in mobile fraud defence.

Africa’s booming mobile banking sector is facing the new reality of fraudsters adapting faster than some defences can keep up.

According to Chenosis, API marketplace and developer platform that was launched by the MTN Group five years ago, in 2023 alone, Uganda’s banking sector suffered an estimated 23 million (UGX 87 billion) in fraud-related losses, underscoring the growing threat to trust, compliance, and growth.

In Zambia, the story is similar. A PwC 2024 Banking Industry Survey lists cybersecurity as a top-three concern for the third year in a row. The surge in mobile transactions, over two billion recorded in Zambia in 2023, worth more than $18 billion ( K452 billion) has created vast new attack surfaces.

Sarah Lloyd, CRO at Absa Bank Zambia PLC, says three fraud vectors dominate: identity theft using stolen IDs, SIM swaps to hijack accounts, and loan fraud exploiting instant digital credit systems. “Remaining agile to developments and change… will be the three requirements of contending with cyber risk. It’s not just about technology, it’s about anticipation, adaptability, and strong controls,” she said.

While many African banks already block around 97% of fraud attempts, the final 3% often slip through and those cases can cost billions. This “last mile” is where Chenosis believes mobile network intelligence can make the difference.

“The last 3% of fraud attempts are the most expensive. Closing that gap starts with mobile intelligence. Their Mobile Fraud Bundle integrates directly into existing banking systems via APIs, detecting SIM swaps in real time, flagging unusual device activity, and identifying device changes before an account is compromised,” it said in statement.

Chenosis emphasised the benefits go beyond loss prevention because mobile intelligence helps banks meet Know Your Customer (KYC) and Anti-Money Laundering (AML) compliance requirements, maintain brand trust, and protect customer experience without adding unnecessary friction.

“Fraud defence is no longer a bank-only problem. It’s a collaboration between financial systems and mobile networks,” Chenosis added.

For Uganda’s and Zambia’s financial leaders fraud prevention must be unified, proactive, and mobile-aware. “In a landscape where speed, compliance, and trust are all non-negotiable, closing the last 3% gap may be the most profitable move of all,” stated Chenosis.