Financial Crime World

Identity Theft on the Rise in Zimbabwe as Online Banking Becomes More Popular

A Growing Threat to Zimbabwe’s Financial Landscape

As Zimbabweans increasingly turn to online banking and mobile wallets for convenience, a growing threat of identity theft looms over the country’s financial landscape.

The Rising Concern of Cybercrime in Zimbabwe

According to WorldRemit Country Manager Susan Sitemere, cybercrime has become a major concern in Zimbabwe, with the country experiencing an upsurge in cases of money-related fraud, card cloning, and identity theft.

  • Money-Related Fraud: Cases of money-related fraud are on the rise, with individuals losing large sums of money to scammers.
  • Card Cloning: Card cloning has become a common problem, with thieves stealing credit card information to make unauthorized transactions.
  • Identity Theft: Identity theft is also becoming more prevalent, with individuals having their personal details stolen and used for malicious purposes.

The Importance of Cybersecurity

“Cybersecurity is crucial as online transactions become more common,” Sitemere said. “At WorldRemit, we take cyber security very seriously and work hard to ensure that our customers’ transactions are safe and secure.”

The National Risk Assessment Report 2020

The National Risk Assessment (NRA) Report of 2020 estimates that cyber risks, mainly through digital financial channels, contribute to an estimated US $900 million in illicit proceeds generated from criminal activity annually in Zimbabwe.

  • Cyber Risks: Cyber risks are a major concern for the country’s financial system, with digital financial channels being exploited by criminals.
  • Illicit Proceeds: The report estimates that cyber risks contribute to an estimated US $900 million in illicit proceeds generated from criminal activity annually.

The Government’s Response: The Cyber Security and Data Protection Bill

To address the issue, the government of Zimbabwe passed the Cyber Security and Data Protection Bill in 2021, which aims to punish individuals who misuse and abuse the internet, social media, and communication networks. The bill also seeks to support the country’s financial digital system for better protection and efficiency.

  • Punishment: The bill aims to punish individuals who misuse and abuse the internet, social media, and communication networks.
  • Protection: The bill also seeks to support the country’s financial digital system for better protection and efficiency.

WorldRemit’s Proactive Steps

WorldRemit has taken proactive steps to prevent cyber-attacks and protect its customers’ data. The company refuses to work with correspondent partners that lack effective controls for combatting fraud and financial crime, and implements additional risk-based controls for customers who need to send money to destinations where there is an elevated money laundering or terrorism financing risk.

  • Effective Controls: WorldRemit refuses to work with correspondent partners that lack effective controls for combatting fraud and financial crime.
  • Risk-Based Controls: The company implements additional risk-based controls for customers who need to send money to destinations where there is an elevated money laundering or terrorism financing risk.

Collaboration between Industries

Sitemere emphasized the importance of collaboration between industries and companies to share best practices and information in order to better watch over financial transactions. “The international remittance space is exposed to several key risks, including money laundering, fraud, terrorism financing, and sexual exploitation,” she said.

  • Collaboration: Collaboration between industries and companies is essential to share best practices and information.
  • Risk Exposure: The international remittance space is exposed to several key risks, including money laundering, fraud, terrorism financing, and sexual exploitation.