Tanzania’s move towards mandatory electronic payments, introduced through amendments to the Electronic Transactions Act, Cap. 442 R.E. 2023, represents a fundamental change in how businesses conduct and record financial transactions. The reform is expected to reduce many of the risks associated with cash handling and improve financial transparency by creating a digitally traceable financial ecosystem. This change is a positive step in the country’s digital transformation, as electronic payments create audit trails, improve accountability and support tax compliance by ensuring that every transaction leaves a digital footprint.
However, the reform also creates new opportunities for fraud that organisations must understand and manage. Historically, fraud schemes often focused on cash theft, false reimbursement claims and the misappropriation of physical receipts. As transactions become increasingly digital, fraudsters are shifting their attention towards manipulating electronic payment processes, payment instructions, user credentials, and financial data. Therefore, organisations need to review and strengthen their internal controls to eliminate emerging fraud risks. The strongest fraud controls will therefore combine the transparency of electronic payments with disciplined verification, access controls, and continuous monitoring.
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