Who is liable when mobile money disappears

DAR ES SALAAM: NOT long ago I opened my mobile phone to check my balance and something felt… off. A small amount of money was missing.

Nothing dramatic. At least not in the grand scheme of things so the balance was not exactly in the millions. But it was enough to make me pause. I called customer service to ask what had happened.

Eventually the issue was sorted out. Still, the experience stayed with me. If a small amount disappearing from a student’s wallet can raise questions, imagine waking up one morning and discovering that millions have vanished from your mobile account.

No warning, no explanation. Just a list of transactions you never made. It may sound extreme, but situations like this are not impossible in today’s digital financial world.

Mobile money has become part of everyday life in Tanzania. Salaries are transferred electronically, parents send school fees through their phones, small businesses receive payments through mobile wallets instead of cash. The convenience is undeniable. But it raises a question many users rarely stop to ask.

When something goes wrong in an electronic transaction, who is liable?

A System Built on Trust Behind every mobile money transaction lies a system that most users never see. In Tanzania, electronic payment services operate under the National Payment Systems Act, 2015, with regulatory oversight from the Bank of Tanzania.

The law governs digital payment systems and ensures that providers operate within a regulated financial environment. Mobile services such as M-Pesa, Airtel Money and Tigo Pesa function as licensed electronic money issuers under this framework.

One important safeguard within the system is that money collected from mobile money users is not simply kept by the telecommunications company. Regulations require these funds to be held in The digital doubleedged sword risks from compromised accounts or insider threats.

At the same time, companies can deploy AI-powered security tools capable of detecting suspicious transactions and fraud patterns in real time. Government leadership is equally important.

Tanzania can strengthen its national cyber defence by supporting a fully resourced Computer Emergency Response Team (CERT) capable of coordinating responses to major cyber incidents and sharing threat intelligence across sectors.

Clear consumer protection mechanisms are also necessary so that victims of digital fraud have effective channels to report incidents and seek assistance. Securing Tanzania’s Digital Future Tanzania’s digital transformation is both necessary and irreversible.

Mobile technology, digital payments, and online services are expanding economic opportunity across the country. A farmer in Mbeya can access market information instantly. A business owner in Kigoma can register a company online without travelling to Dar es Salaam.

Students can access learning resources through mobile internet, while entrepreneurs can reach customers nationwide.

These developments represent powerful tools for national development. However, digital progress cannot rely on blind trust. A secure digital economy requires vigilance, responsibility, and cooperation. Citizens must develop safer digital habits. Businesses must treat cybersecurity as a strategic priority.

Government institutions must strengthen regulation, enforcement, and national cyber defence. If these efforts advance together, Tanzania can build a digital ecosystem that is not only innovative and inclusive but also secure and resilient. The nation’s digital future is being shaped today.

The challenge is not only to connect Tanzania—but to ensure that this connected future remains safe, trustworthy, and empowering for all. trust accounts within licensed commercial banks.This means the telecom company provides the platform through which transactions occur, while the underlying funds are safeguarded within the banking system.

The structure is designed to protect users and maintain confidence in digital financial services. Yet the real legal questions often arise when something goes wrong.

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When Transactions Go Wrong

The problem usually appears when a user discovers that money has been transferred from their account without their permission. Perhaps several transactions appear that the user never authorized. Perhaps the phone number connected to the account has been compromised.

In some cases, people gain access through schemes such as SIM-swap fraud, where a victim’s phone number is transferred to a new SIM card controlled by someone else.Once access is obtained, funds can be moved quickly.

When such incidents occur, the immediate concern is recovering the money. But legally, the deeper issue becomes one of responsibility.

Did the system fail to properly verify identity before allowing access?

Did the service provider maintain adequate security measures? Or did the fraud occur because personal security information such as a PIN or verification code was compromised? What the Courts Have Said Questions about unauthorized transactions are not entirely new to financial law.

In Anna Babu t/a E & L Catering Service v Akiba Commercial Bank Ltd (2011), the High Court of Tanzania addressed a dispute involving withdrawals that had been made from a customer’s bank account without proper authorization.

The court held the bank liable, emphasizing that financial institutions entrusted with customer funds must exercise reasonable care in safeguarding accounts and ensuring that transactions are properly authorized.

Although the case concerned traditional banking transactions rather than mobile money, the principle remains highly relevant. Institutions responsible for managing financial systems are expected to maintain adequate safeguards to prevent unauthorized access to customer accounts.

As digital financial services expand, similar reasoning may increasingly apply to disputes involving electronic money and mobile transactions. Convenience and Responsibility Mobile money has dramatically expanded financial access in Tanzania.

Millions of people who once had limited access to traditional banking can now send and receive money through electronic platforms. The benefits are clear. But technological convenience can sometimes hide the complexity behind the system.

Every electronic transaction depends on telecommunications infrastructure, banking systems, regulatory oversight and user behavior working together. Most of the time this system functions smoothly. Yet when problems arise, the legal questions beneath the surface become visible.

Understanding how these systems operate and where responsibility may lie is becoming increasingly important in a digital financial environment. Because as electronic transactions continue to grow, the question remains:

When mobile money disappears, who is liable?

Jua leo, jilinde kesho.

This article is written for general legal awareness and educational purposes only. It provides a general discussion of electronic financial transactions and the regulatory framework governing them in Tanzania.

Legal outcomes depend on specific facts and circumstances and readers seeking professional advice should consult a qualified legal practitioner.