Mobile phone based payment authentication system: an intervention for customers’ bank account fraud in Tanzania

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Date

2014

Journal Title

Journal ISSN

Volume Title

Publisher

International Journal of Information and Communication Technology Research

Abstract

Through the rapid development of ICTs in Tanzania, banking industry has experienced rapid change in the ways of service delivery to their customers. The society has experienced a rapid development in communication sector particularly on the use of mobile phones for banking. The commercial banks in Tanzania have also revolved their ways of operating and serving their customers. The central bank of Tanzania (BoT) is responsible in defining all the payment systems in Tanzania and control all the transaction being done by the commercial banks operating in the land of Tanzania. Currently, Tanzania has many payment instruments as defined by the BoT which divided into two main group Cash and Non-Cash payments instruments. The latter includes: payment orders, bills of exchange, promissory notes, cheques and the electronic payment systems. In this paper, the security threats of these payment instruments have been discussed in detail. Some reported cases where organizations have been fleeced of their financial resources through dubious activities in Tanzania have been reviewed to verify the existing of the problem in discussion. In this paper, a Mobile phone based payment authentication system model to reduce the threats associated with non-cash payment implemented in Tanzania is proposed. Using this model, account holders are required to provide a final authentication of transaction through their registered mobile phone. This method if adopted will take care for any non-cash payment instruments. Also, some of the threats being discussed in this paper can be addressed by the proposed model.

Description

Article

Keywords

Mobile phone, Payment instruments, Bank account security, Customer, Bank account, Signatory, Authentication

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