Palmpay Announces The Recovery of About $677 Million For Over 853,000 Users in 7 Months, Urges For Prioritization of Security

Nigerian Fintech platform Palmpay, has announced that the company recovered about $677 million for over 853,000 users in seven (7) months, while urging users to make security a top priority.

Palmpay made this known during its monthly wallet safety workshop, held to educate users on the need to prioritize security to avoid falling victim to fraudsters, and also help to improve their overall security knowledge.

Speaking at the workshop, the MD/CEO of Palmpay, Chika Nwosu, urged users to be digitally literate.

He said, 

“With the growing use of digital payment platforms, new risks and concerns emerge for operators and users. It’s impressive that these efforts have led to remarkable financial recovery.

“In the first seven months of 2023, over $677 million has been successfully recovered for more than 853,000 users. This achievement highlights our commitment to safeguarding our customers’ financial interests and assets”.

Since the launch of the workshop in 2022, Palmpay has been using both online and offline channels, including the app, social media, official website, and printed materials to educate users on how to spot fraudulent activities and the necessary measures to take.

According to a recent report by the Financial Institutions Training Centre, FITC, on Fraud and Forgeries in Nigerian banks for Q2, 2023, fraud cases have soared to a whopping 276.97% during this period. This is attributed to the increased adoption of internet connectivity and digital payment solutions in Nigeria has unfortunately led to a rise in fraudulent activities.

To safeguard their entire e-wallet platform, most Fintech players in Nigeria have developed infrastructures to help protect customers’ accounts, prevent fraud, and reduce risk.

For Palmpay, the fintech startup has significantly fortified its security features to enhance users’ security. The company has continued to take action against fraudulent accounts through an investigation of internal accounts and has banned thousands of them.

The company’s risk management strategy revolves around factors like user identity, network preferences, behavior, device patterns, and fundamental data.

This creates a closed-loop process for efficient risk control. By employing this method, PalmPay rapidly spots issues like fake accounts, fraudulent marketing, and security breaches, such as port scans and credential stuffing.

When accessing the app from an untrusted device, a comprehensive security verification process is required, combining OTP and PIN, to ensure top-tied security.

Palmpay remains fully committed to ensuring maximum security on the app, by integrating facial recognition capabilities into its transaction activities, especially during withdrawals. 

Recently, the Fintech unveiled the new PalmPay Business App, featuring a comprehensive security upgrade. The upgraded system verifies if the user’s actions are performed by the genuine account holder. 

These tight security measures ensure more accurate identification of potentially fraudulent activities and unauthorized access, further safeguarding customers’ accounts.