44% of Rwandans fall victim to digital financial fraud, Central Bank study shows

By The Inspirer.

A recent study conducted by the National Bank of Rwanda (BNR) in collaboration with the Consultative Group to Assist the Poor (CGAP) reveals that 44% of Rwandans have lost money through digital financial fraud.

The research, which surveyed users of digital financial services (DFS), also found that 97% of users encounter various challenges, including theft, misuse of personal information, and network disruptions.

Among the respondents who experienced fraud, 44% reported being directly stolen from, while 65% faced issues with agents, 82% lacked sufficient digital literacy, and 41% made mistakes leading to financial losses. On the lending side, 30% of DFS users applied for loans through digital platforms.

The study also found that 53% of DFS users are men, 67% reside in urban areas, and 82% have moderate income levels.

Eric Duflos, a financial expert at CGAP, noted that the high levels of fraud and digital service challenges highlighted in the study require urgent solutions.

“Users continue to lose money, and 97% have experienced issues such as failed transactions, network outages, or misdirected payments. We are hopeful these challenges will be addressed in collaboration with financial institutions, with BNR showing strong commitment,” he said.

BNR’s Director of Financial Conduct Supervision, Gerard Nsabimana, stressed that while gaps remain, the central bank is committed to tackling digital fraud.

Nsabimana explained that common scams often involve impersonating customers, with fraudsters sending messages claiming money was sent erroneously or pretending to be staff from financial institutions to trick users into transferring funds.

He advised Rwandans to keep their PINs confidential and remain vigilant against fraud attempts. When errors are caused by financial institutions, the matter is investigated, and victims are reimbursed if necessary.

The FinScope 2024 survey also shows that access to financial services in Rwanda has expanded to 96% of the population, up from 93% in 2020. Among users, 92% rely on formal institutions such as banks and licensed financial entities, while 4% use informal channels.

Mobile money usage continues to rise, reaching 86% in 2024 from 62% in 2020. Use of SACCO services is at 51%, insurance at 13%, prepaid cards at 5%, and mobile banking at 10%. Meanwhile, the population without access to financial services has declined from 7% in 2020 to 4% in 2024.