According to a report by Semafor, which cites sources familiar with the matter, Nigeria’s leading fintech startups are reportedly working together on a strategy to combat fraudulent transactions in their networks. This strategy includes the development of a shared registry of individuals who are suspected of committing crimes.
The proposed project, “Project Radar,” would let companies like digital banks Kuda and Branch, savings app Cowrywise, and payments processor Flutterwave share information about people and groups that have made or tried to make fraudulent transactions.
Flutterwave has denied that it was hacked, but court documents show that it sued 16 commercial banks to freeze more than 100 accounts that were thought to have received money from the alleged breach.
During a meeting about Project Radar, industry leaders are said to have complained about the rise of fraudsters taking advantage of flaws in the financial system and the fact that companies don’t share data to find these bad actors.
If the plan works, it could reduce the number of fraudulent transactions on these fintech platforms and make it easier for people to trust Nigeria’s financial sector.