Dealing with MFS fraud

Mobile Financial Services (MFS) have revolutionised financial access for millions in Bangladesh. But alongside this convenience, we are witnessing a sharp rise in fraud within the sector. Fraudulent activities like SIM swap attacks, phishing scams, and account hacking are becoming increasingly common, and yet, the response from both MFS providers and regulatory authorities remains insufficient. The lack of urgency to tackle this growing issue is deeply concerning.
Every day, unsuspecting users fall victim to fraud. Often, fraudsters take advantage of gaps in security and a general lack of awareness among MFS users. Phishing calls, where fraudsters impersonate MFS service providers to steal sensitive information, are becoming all too common. As yet, many users don't know how to protect themselves or spot these scams. Here's what matters: fraud in MFS platforms is costing people more than just money. It is costing trust in the system, and without that trust, MFS could lose its effectiveness in reaching Bangladesh's most vulnerable populations.
The lack of comprehensive awareness campaigns is one of the biggest gaps. While MFS platforms are rolling out some security features like two-factor authentication, these efforts are only part of the solution. Users need to be informed about how these scams work and how they can safeguard their accounts. Awareness campaigns can equip users with the knowledge they need to protect themselves, whether it's identifying fraudulent messages or understanding how to prevent unauthorized transactions. The truth is, when people don't know the risks or how to mitigate them, they're much more likely to fall prey to fraud. So, why isn't there more focus on user education?
Fraud is a moving target. Fraudsters continually evolve their tactics to bypass the basic security measures that MFS providers set up. Even though the financial institutions are aware of the ongoing fraud, the level of urgency to deal with it is simply not there. There should be a national, coordinated response-a combination of stronger security, better detection systems and an education campaign that runs round the year. Without this, the problem will continue to grow.

Hasiba Nur
Student
Masters of Business Administration
North South University