Nairobi, Kenya, Feb 26-Phishing scams are the most common challenges associated with the digital credit market, a survey by the Competition Authority of Kenya (CAK) has revealed.
The study was conducted in 2021 and was laid bare during the Authority’s inaugural Competition and Consumer Protection Law Digest unveiled last Friday.
The study has revealed that 77% of scammers asked consumers to send money for a variety of reasons including non-existent transactions. Other requests included asking for a password or Personal Identification Number (21%), personal information (19%), or account details (13%).
ALSO READ: Men Borrow More From Digital Lenders Than Women, Study Shows
“On fraud in digital financing, the study revealed that there was a high prevalence of attempted fraud, particularly by third parties. 82% of respondents reported having received a call or SMS from an unknown person who asked for money or sensitive personal information,” read the survey in part.
Similarly, digital credit has also faced challenges of customers incorrectly sending money to the wrong recipient.
The study underscored the need for potential policy reforms related to handling complaints and transparency of terms and conditions in the wake of a high appetite for digital payment systems in the country.
It also called for Increased consumer control over personal information in a bid to avert phishing cases.
CAK’s Law Digest has been developed in collaboration with the National Council for Law Reporting (Kenya Law).It aims to bolster understanding of competition and consumer protection law in the country, expose stakeholders to the authority’s decision-making processes, and further develop jurisprudence.
The authority says the publication provides concise but detailed briefs on select matters it has handled since its establishment in August 2011 to June 2022.
