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Tanzania’s move towards mandatory electronic payments, introduced through amendments to the Electronic Transactions Act, Cap. 442 R.E. 2023, represents a fundamental change in how businesses conduct and record financial transactions. The reform is expected to reduce many of the risks associated with cash handling and improve financial transparency by creating a digitally traceable financial ecosystem. This change is a positive step in the country’s digital transformation, as electronic payments create audit trails, improve accountability and support tax compliance by ensuring that every transaction leaves a digital footprint.
18 August 26
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However, the reform also creates new opportunities for fraud that organisations must understand and manage. Historically, fraud schemes often focused on cash theft, false reimbursement claims and the misappropriation of physical receipts. As transactions become increasingly digital, fraudsters are shifting their attention towards manipulating electronic payment processes, payment instructions, user credentials, and financial data. Therefore, organisations need to review and strengthen their internal controls to eliminate emerging fraud risks. The strongest fraud controls will therefore combine the transparency of electronic payments with disciplined verification, access controls, and continuous monitoring.
This article explores the emerging fraud risks associated with electronic payments, including business email compromise, vendor fraud, social engineering and insider threats. It also considers why electronic payment compliance alone is insufficient, and how organisations can strengthen governance, access controls, verification processes, and monitoring to protect against fraud.
Click here to download and read the full article.
Should you have any questions regarding the information in this legal alert, please do not hesitate to contact Geofrey Dimoso.
Contributor
Samantha Chamungwana – Consultant