Wema Bank Axes Seven Fintech Partners After N685m Loss to Fraud

By Adedapo Adesanya

Wema Bank Plc said it has removed and suspended about seven fintech partners from its payment gateway platform over fraudulent activities. It, however, didn’t name the affected partners.

This is as the bank unveiled an anti-fraud campaign to protect its customers and other Nigerians against fraudulent activities perpetrated by some wallet accounts and fintech partners.

A statement from the bank on Wednesday revealed that there had been a recent increase in fraudulent inflows into some wallet accounts operated by some of its fintechs partners using its third-party wallet accounts.

The bank, according to its financial statement, reported N685 million in fraud and forgery losses in 2023.

To tackle the development, Wema Bank said that through its anti-fraud campaign, it had successfully investigated, identified, and disengaged three fintech firms for fraud and suspended four others from its platform in its ongoing efforts to ensure responsible partnership, adherence to regulatory procedures and conformance to the Central Bank of Nigeria (CBN) Know-Your-Customer guidelines.

“There are ongoing audits and reviews of fintech partners processes as part of the grand plan to ensure that we get the anticipated/desired results.

“The Anti-Fraud Campaign targeted at creating awareness, educating, and equipping customers with the necessary information needed to mitigate, detect and handle fraudulent activities on their bank accounts further underscores the bank’s commitment to safeguarding customers’ finances and personal data,” a statement from the bank highlighted.

Speaking on this move, the Chief Audit Executive of the lender, Mr Oluwole Esomojumi, said the anti-fraud campaign was designed to protect customers from fraudulent activities and provide them with the necessary information for detecting the tactics of fraudsters.

“The antics of fraudsters are constantly evolving. To stay steps ahead, consumers must have a good understanding of what interactions or engagements are telltale signs of fraud and how they can handle suspicious fraudulent engagements.

“Hence the launch of the Wema Bank Anti-Fraud Campaign. We are steps ahead on our end which is why we have taken time to investigate our fintech partners and those found culpable have been disengaged from our payment gateway platform.

“As a bank that is resolute in our stance against fraud, we cannot compromise the safety of our beloved Nigerians, especially when these threats of fraud are emanating from fintech who use our platforms. Rest assured, there is no room for fraudsters here.

“We have multiplied the frequency of our security checks and are committed to rooting them out. No fraudster is safe with Wema Bank because at Wema Bank, customer safety is our priority and empowering the lives and businesses of every customer is our mission,” he concluded.