MoMAG warns agents against remote ‘cash-out’ transactions
The Mobile Money Advocacy Group Ghana (MoMAG) has issued a strong directive to mobile money agents to immediately discontinue remote and proxy transactions, following sanctions imposed on hundreds of agents by Mobile Money FinTech Ltd (MMFL).
The warning comes after a recent regulatory exercise which, according to MoMAG, led to the permanent termination of more than 900 agent accounts and the one-month suspension of over 100 others.
The group attributed the sanctions partly to risky transaction practices, particularly those carried out without the physical presence of customers.
“Finally, MoMAG urgently advises all its members and all agents to discontinue the practice of ‘cash-out’ transactions where the customer is not physically present,” the statement emphasised.
MoMAG explained that such practices expose both agents and customers to fraud and were a major factor behind the penalties imposed.
“Remote or proxy cash-outs where a customer remains elsewhere while another individual transacts on their behalf pose significant risks and were identified as a contributing factor to why some agents faced severe penalties during this exercise,” it noted.
The association stressed that agents must strictly follow standard procedures by ensuring that customers are physically present during transactions.
“If a customer wishes to withdraw funds from their wallet, they must come to the agent’s location and present their phone in person, just as they would for any standard transaction,” the group stated.
It also cautioned against accepting deposits without proper verification.
“We also advise that customers come along with their phones for deposits,” the statement added, warning against any form of proxy handling.
MoMAG further linked the issue to broader fraudulent schemes uncovered during the exercise, including attempts by some agents to manipulate customers.
“The affected agents had been sending prompts to customers for approval without the customers’ knowledge and also calling customers in attempts to socially engineer them and steal from them,” it revealed.