Wema Bank Boosts Security with Facial Recognition Tech Following ₦685 Million Fraud Loss

Wema Bank, a Nigerian financial institution, has partnered with Daon, a global leader in digital identity, to enhance security using facial recognition technology. This move aims to combat fraud on Wema Bank’s platform.

Wema Bank has adopted Daon’s xProof and (xAuth/xFace) applications on the Daon IdentityX® platform. These tools provide digital identity verification and authentication for the banking app. This partnership, involving Daon and regional partner Ouranos Technologies, enables customers to perform banking transactions securely by taking a selfie, ensuring high security with advanced liveness detection and other anti-fraud measures.

By integrating these solutions, Wema Bank can now handle both onboarding and authentication across multiple channels from a single platform.

Wema Bank, like many Nigerian banks, has faced fraud issues recently. In April 2024, Techpoint Africa reported that the bank lost ₦685 million ($594,943) in 2023 due to fraud and forgery via digital and payment channels. In response, Wema Bank expanded its fraud monitoring team and launched an anti-fraud campaign.

In the same month, the bank suspended up to seven fintech partners from its payment gateway due to fraudulent activity. Clive Bourke, President of EMEA and APAC at Daon, emphasised that implementing Daon’s identity verification solutions will enhance the user experience and increase data security for Wema Bank customers. 

Olusegun Adeniyi, Chief Digital Officer at Wema Bank, added that this development aligns with the bank’s mission to provide seamless access to a broader range of financial services.

Hi, I’m Damife Isaac

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