Financial Scams on the Rise in Sierra Leone: Victims Urge Banks and Telecoms to do More

Freetown, Sierra Leone - A growing number of Sierra Leoneans have fallen victim to online financial scams, raising concerns over the security of digital transactions and the response from financial and telecommunications institutions.

Personal Story of a Victim

A Sierra Leonean individual, who wishes to remain anonymous, recounts losing over 1 million old Leones (US$1000) in a cyber attack. Despite considering themselves knowledgeable about cybersecurity, the victim was left bewildered about how the fraud occurred.

The Extent of Financial Fraud in Sierra Leone

The issue of financial fraud is rampant in Sierra Leone, as reported by this news article. A bank official in Freetown, speaking on condition of anonymity, confirms numerous reports of similar incidents. The bank, however, offers no immediate solution.

Vulnerability of Online Transactions in Sierra Leone’s Banking System

According to industry experts, Sierra Leone’s banking system has yet to invest significantly in securing online transactions, leaving individuals vulnerable. Abu Bakarr Jalloh, Founder and CEO of Sanusi Research & Consulting, emphasizes the significance of this issue.

Mobile Money Transfers and Online Financial Fraud

Mobile money transfers add to the digital financial infrastructure’s growth, but they come with risks. With the Limited access to formal banking, services like Orange Money and Afrimoney are popular. However, fraudulent activities target mobiles money subscribers.

Common Mobile Money Scams

Mobile money subscribers are often victims of scams, with the most common being fraudulent lottery offers from telecommunications companies via text messages or emails. Scammers often impersonate these firms, requesting users to send money or personal information to secure supposed winnings.

Instances of Online Financial Fraud

According to the Financial Intelligence Unit (FIU), there were 14 cases of online financial fraud in 2020 and 8 cases in 2021, representing just the tip of the iceberg in a country rapidly embracing digital financial services.

Real-life Stories of Victims

One such victim, Kadija Mansaray, a resident of Freetown, shares her story of losing 400,000 old Leones (US$400) in a scam in 2020. She received a text message claiming she had won 12 million Leones from Africell but was requested to pay a ‘processing fee’ of 100,000 Leones via Afrimoney. Scammers continued to ask for more money despite her suspicion, resulting in her ultimate loss.

The Challenge of Combating Cybercrimes

Mobile money operators attempt to raise awareness of these scams, but they often struggle to keep up with the evolving nature of cybercrimes. Scammers exploit offers created by mobile money operators for marketing purposes, further complicating the situation for digital users.

Cybersecurity Measures and Awareness

Siaka Mansaray, the Cybersecurity Coordinator at the Ministry of Information and Communication, emphasizes the importance of individuals being cautious when dealing with unsolicited or suspicious communications. He encourages citizens to double-check the authenticity of such offers and refrain from sharing sensitive information.

Combatting Financial Cybercrime

Sierra Leone’s National Cybersecurity Coordinator, Mariama S. Yormah, acknowledges the challenges faced by the cybersecurity sector but expresses a plan to address the issue. She aims to implement policies and standards for financial institutions once a fully functioning Cybersecurity Coordination Centre is established.

Conclusion

As the digital economy continues to grow in Sierra Leone, it’s crucial for both individuals and institutions to be vigilant against scams and to prioritize cybersecurity measures to protect the financial well-being of the population.

Call to Action

Transparency and education regarding financial cybercrime are essential, and stakeholders, including banks, telecoms, and government institutions, must collaborate to combat these incidents and strengthen the digital financial infrastructure of the country.