As Nigeria’s digital payments industry expands, concerns about fraud and frozen accounts remain a pressing challenge. PalmPay has responded by implementing a range of measures designed to safeguard users and enhance trust in the fintech ecosystem.
The company explained that accounts are not frozen automatically for every suspicious activity but clarified that funds tied to questionable transactions are isolated while investigations are conducted. Where balances are insufficient, temporary suspensions may occur, ensuring compliance with regulatory standards while protecting users.
PalmPay adopts a multi-layered security strategy to prevent fraud. Its systems include biometric authentication, device binding, and two-factor authentication to ensure that only legitimate users gain access to accounts. The platform also relies on AI-powered anomaly detection, which tracks transactions in real time to flag unusual activity. Despite these safeguards, PalmPay stresses that user behaviour remains critical, warning that sharing login credentials or one-time passwords (OTPs) can still expose accounts to risk.
Beyond technology, PalmPay prioritises user education as part of its anti-fraud strategy. Initiatives such as Anti-Fraud Awareness Week are designed to inform customers about online scams and safe transaction practices. By empowering users with knowledge, the company helps reduce risks associated with fraud while also strengthening customer trust. This approach highlights the importance of combining security innovations with awareness campaigns to achieve lasting impact.
PalmPay’s model underscores how fintechs can curb fraud and reduce account freezes through a blend of technology, education, and collaboration with regulators. The firm believes this proactive approach can set industry standards for safe and reliable digital finance in Nigeria.
With transparent processes, real-time security tools, and stronger engagement with users, PalmPay aims to foster a trusted payments environment where Nigerians can transact confidently. Customers are urged to contact PalmPay’s customer service or fraud desk immediately if they suspect their accounts have been compromised.