Tanzania Moves to Tighten Cyber Rules as Digital Fraud Rises

As Tanzania’s financial system rapidly shifts from cash to mobile phones and digital wallets, the benefits of wider access to payments and banking services are being matched by a growing exposure to cybercrime. Fraud losses are climbing into the billions of shillings, regulators are reporting sharp spikes in network-based attacks, and financial institutions are now being pushed toward stricter cybersecurity standards

The Bank of Tanzania is drafting tougher cybersecurity rules for lenders and mobile money operators as digital fraud surges alongside rapid adoption of online financial services, officials and analysts say.

The move comes as Tanzania’s financial system becomes increasingly digitised, with mobile money usage exceeding 70 percent of the population, exposing banks and telecom-led payment platforms to a growing wave of cyber threats.

Fraud losses have climbed sharply. Customers lost about 5.3 billion Tanzanian shillings ($2 million) to fraud in 2024, largely through mobile money, bank transfers and ATM transactions, according to official crime statistics. Earlier data from regulators shows cyber-enabled fraud rose 84 percent in late 2023, underscoring the scale of the problem.

There has been rising incidents of SIM-swap scams, phishing and identity theft across East Africa.

Central bank governor Emmanuel Tutuba has signalled a tougher stance, saying authorities are strengthening safeguards to protect the country’s “rapidly evolving digital payments landscape.”

Under the planned rules, banks and financial service providers are expected to adopt stricter controls, including real-time transaction monitoring, stronger authentication systems and tighter oversight of third-party technology providers, according to industry executives familiar with the discussions.

The regulatory push also reflects Tanzania’s weak standing in global fraud prevention rankings. The country placed near the bottom of the 2025 Global Fraud Index, highlighting gaps in institutional capacity and cyber defences.

Experts say the challenge is structural. As digital finance expands, so too does the attack surface. Mobile network fraud attempts alone rose 33 percent between December 2024 and March 2025, according to the Tanzania Communications Regulatory Authority.

“Robbers don’t come in through the front door anymore,” said Olanyika David-West, describing how cybercriminals increasingly exploit system vulnerabilities rather than physical bank infrastructure.

The tighter rules are expected to raise compliance costs for banks but could strengthen trust in digital finance, which has become central to Tanzania’s economic growth.

Still, analysts warn enforcement will be key. Without stronger supervision and technical capacity, new regulations risk lagging behind increasingly sophisticated cyber threats.

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