Are the customers’ rights protected against fraud in mobile banking in Tanzania?

A review of the laws and practice

Abstract

The development of Information and Communication Technology especially digitalization, computerization and Internet has improved the banking sector in various countries including Tanzania. Customers have the potential to perform financial transactions through their Bank Accounts at any-time and anywhere. Despite that, Tanzania currently faces a challenge in the digital or cyber environment which has brought with it several cybercrimes perpetrated by unknown persons such as hackers. These crimes and notorious behaviours extend to the banking sector where unauthorized or fraudulent transactions are performed in the customers’ bank accounts without their knowledge and affect their chances of being indemnified for the losses. This article analyzes the law and practices relating to mobile banking customer’s rights to privacy and compensation in case of fraudulent mobile banking transactions in Tanzania. The findings have shown that the increase of fraud in mobile banking cases is contributed by ineffective compensation schemes, cumbersome procedures for investigating cybercrimes, and unfair terms and conditions of mobile banking services.