Understanding Responsibility for Lost Mobile Money in Tanzania

In Tanzania, mobile money has become a key part of daily life, helping people send salaries, school fees, and business payments through phones. While the system is convenient and regulated under the National Payment Systems Act, 2015 with oversight by the Bank of Tanzania, problems sometimes happen when money disappears from accounts. Cases like unauthorized transfers, SIM-swap fraud, or compromised PINs raise questions about who is legally liable. Telecom companies provide the platform, but the actual funds are held in trust accounts in licensed banks to safeguard users. Tanzanian courts, like in the 2011 Anna Babu case, have previously held banks responsible for unauthorized withdrawals when proper security was lacking, a principle that also applies to mobile money. Users, companies, and the government all share responsibility: people must protect their personal information, service providers should implement strong cybersecurity measures, and authorities must ensure robust regulation and cyber defence. As Tanzania continues its digital transformation, awareness about digital risks and clear consumer protection are vital to keep the mobile money ecosystem safe and trustworthy for everyone.