Financial Cybercrime Threatens Data Privacy in Sierra Leone: Victims Lose Fortunes, Institutions Fail to Respond

Personal Experience of Online Money Fraud Leaves Sierra Leone Resident Wary

A local resident in Freetown, Sierra Leone, recounts a chilling personal experience of online money fraud, losing over 1 million old Leones (approximately US$100) in the process (ManoReporters, 2022). The victim, like many others, is questioning the commitment of banks and financial institutions to secure online transactions and protect their customers’ assets.

A Growing Concern: The Tip of the Iceberg

According to reports, this incident is just the tip of the iceberg, with many others in similar situations. A bank employee in Freetown admitted to ManoReporters, “There are a lot of such reports here. Many people are in the same boat as you” (ManoReporters, 2022).

Inadequate Investment in Online Security Leaves Users Susceptible

Abu Bakarr Jalloh, the Founder and CEO of Freetown-based Sanusi Research & Consulting, explained that the limited investment in securing online transactions puts users at risk (ManoReporters, 2022).

“The banking system in Sierra Leone has not done enough to secure online transactions.” – Abu Bakarr Jalloh, Founder and CEO, Sanusi Research & Consulting

The Extent of Online Financial Fraud: A Mystery

The extent of online financial fraud in the country remains a mystery, as requests for information from financial services providers, including UBA, went unanswered (ManoReporters, 2022). According to the Financial Intelligence Unit (FIU), only eight investigations were conducted in 2020, and six in 2021 (FIU, 2022). However, these figures are likely just the tip of the iceberg.

The Appeal of Informal Financial Services with Limitations

The appeal of informal financial services like Mobile Money is evident, especially in light of limited access to formal banking (WorldBank, 2021). In 2021, Africa had 161 million active mobile money accounts, with over 495 billion dollars in transactions. However, these services have been plagued by complaints of fraud (ManoReporters, 2022).

One common scam approach involves lottery winnings scams sent via social media and email (FIU, 2022):

“I received a text message saying I had won 12 million Leones from Africell. The scammer asked for a ‘processing fee’ which I paid, but they kept asking for more. By the time I realized it was a scam, I had lost all my savings.” – Kadija Mansaray, Victim

Efforts to Address Financial Cybercrime and Data Privacy

Sierra Leone’s National Cybersecurity Coordinator, Mariama S. Yormah, is seeking to address these issues through the Cybersecurity Coordination Centre (ManoReporters, 2022). The team is in the process of setting up the Centre to deal with cybercrime threats:

“The banking and financial sector is dealing with issues mainly relating to insecure connections, leaving it vulnerable to outside hackers as well as perpetrators locally.” – Mariama S. Yormah, National Cybersecurity Coordinator

Challenges to Progress: Limited Data and Cooperation

However, the team’s progress is hindered by the lack of data available to truly assess the problem. Both the Bank of Sierra Leone and the National Telecommunications Commission failed to respond to multiple requests for information (ManoReporters, 2022).

Demand for a Data Protection Law

Despite these challenges, the Cybersecurity Coordination Centre is hopeful and plans to develop policies and standards that will have to be implemented by all financial institutions. The need for a data protection law in Sierra Leone is also a topic of ongoing debate, as the police have struggled to investigate financial cybercrimes due to a lack of cooperation from telecommunications companies in releasing privacy data without a court order (FIU, 2022).

Stay Informed, Stay Vigilant, Demand Accountability

The need for accountability from financial institutions in securing online transactions and protecting customers’ assets cannot be overstated. The FIU advises users to be vigilant and cautious when sharing personal information online and dealing with financial institutions and telecommunications companies (FIU, 2022).

References

FIU (Financial Intelligence Unit). (2022). Statistical Reports. Retrieved from https://www.fiu.sl/statistics

ManoReporters. (2022). Millions Stolen in Online Money Fraud in Sierra Leone: Victims Question Banks’ Commitment to Secure Transactions. Retrieved from https://manoreporters.com

WorldBank. (2021). Global Findex Database 2021. Retrieved from https://globalfindex.worldbank.org