TECHNOLOGY-RELATED BANK FRAUD AND THE EFFECTIVENESS OF THE LEGAL FRAMEWORK IN TANZANIA

The rapid adoption of technology in the banking sector has changed the manner in which financial services are provided and accessed in Tanzania. Electronic and mobile banking have improved the speed and convenience of banking transactions, but they have also created opportunities for fraudulent activities involving digital systems and electronic financial transactions. Tanzania has enacted several laws relevant to combating such fraud, including the Banking and Financial Institutions Act, the Cybercrimes Act, the Electronic Transactions Act, the National Payment Systems Act and the Personal Data Protection Act. Despite these legal measures, technology-related bank fraud continues to raise legal and practical concerns, particularly in relation to prevention, detection, investigation, electronic evidence, identification of offenders, recovery of fraudulently obtained funds and protection of affected customers. This article examines the effectiveness of the existing legal framework in responding to technology-related bank fraud in Tanzania, with particular reference to CRDB Bank PLC and NMB Bank PLC in Mwanza Region. It argues that the principal difficulty does not arise from a complete absence of applicable laws, but from the fragmented nature of the framework and challenges surrounding its implementation and enforcement. The article therefore considers the need for greater legal coherence, institutional cooperation, effective handling of electronic evidence, stronger investigative capacity and improved mechanisms for protecting customers and recovering fraudulently obtained funds.