Wema Bank Disconnects Popular Payment Companies From Platform Over Fraud

Wema Bank Disconnects Popular Payment Companies From Platform Over Fraud

  • Wema Bank has revealed that it has disconnected seven fintech companies from its platform
  • The bank said the move came following a rise in cases of fraud involving some wallet accounts linked to the fintech firms
  • The bank disclosed that it has designed an ant-fraud campaign to sensitise its customers on the activities of fraudsters

Legit.ng’s Pascal Oparada has reported on tech, energy, stocks, investment and the economy for over a decade.

Wema Bank has said it has removed and suspended about seven financial technology partners from its payment gateway platform over fraudulent activities.

The development comes as the bank unveiled its anti-fraud campaign to protect its customers and other Nigerians against fraudulent activities caused by some wallet accounts and fintech partners.

Wema Bank removes fintech firms
Wema Bank confirms the removal of seven fintech firms over fraud Credit: NurPhoto/Contrbutor
Source: UGC

Wema Bank designs anti-fraud campaign

In a statement on Wednesday, April 17, 2024, the bank said that illicit inflows into wallet accounts owned by some of its fintech partners using third-party wallet accounts had spiked.

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Punch reports that according to the statement, Wema Bank said that via its anti-fraud campaign, it had successfully investigated, found, and disengaged three fintech companies for fraud and suspended four others from its platform in its effort to ensure responsible collaboration and dedication to regulatory processes in line with the Central Bank of Nigeria (CBN) guidelines and KYC rules.

Seven platforms were removed from the platform

Leadership reports that the bank’s Chief Audit Executive, Olowole Esomojumi, said it designed the anti-fraud campaign to protect customers from fraudulent activities and provide them with needed information for detecting the tactics of fraudsters.

He said fraudsters' tricks are constantly changing, and the bank designed the campaign to stay ahead and provide customers with up-to-date information on their activities.

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Legit.ng reported that the Central Bank of Nigeria cut Deposit Money Banks (DMBs) loan-to-deposit ratio by 15 percentage points to 50%

The apex bank disclosed this in a circular on Wednesday titled ‘Re: Regulatory Measures to Improve Lending to the Sector of the Nigerian Economy’ on Wednesday, April 17, 2024.

LDR assesses a bank’s liquidity by comparing total loans to deposits.

Source: Legit.ng

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