Ethiopia: Siket Bank, Fdars Forge Alliance in Fight Against Fraud

ADDIS ABABA — Siket Bank and the Federal Documents Authentication and Registration Service (FDARS) have launched a collaborative initiative aimed at combating the rising instances of fraud affecting citizens.

At the inauguration ceremony, Siket Bank CEO Damtew Alemayehu emphasized the importance of this partnership in streamlining services, reducing customer wait times, and alleviating operational pressures within the bank.

He highlighted how the previous manual verification processes, which were susceptible to manipulation by corrupt officials, often led to significant financial fraud. By harnessing digital technology, this collaboration aims to curb such illicit activities and create a safer banking environment for customers.

FDARS Head Hamid Kiniso also underscored the significance of the Memorandum of Understanding (MoU) with Siket Bank in strengthening efforts to prevent fraud in both the banking sector and society at large.

He explained that FDARS is working to establish system linkages with all government and private banks to proactively address fraudulent activities. He noted that under the old manual system, customers lost millions of Birr to fraud, and banks faced considerable financial risks.

FDARS currently serves up to 6,000 clients daily, leveraging digital technology to enhance service accessibility. The agency is in the process of centralizing regional documents into a unified national database, with four states already utilizing digital services. Hamid further revealed that FDARS is collaborating with institutions such as traffic authorities and crime prevention agencies to expand the scope of the database for broader crime prevention and control.

Through the integration of digital systems, FDARS aims to strengthen the country’s fraud prevention framework, ensuring the security of both personal and financial information. This initiative sets a new benchmark for proactive fraud prevention, with the goal of creating a more secure and trustworthy banking environment for all Ethiopians.

Damtew also stressed the importance of technological innovation in the banking sector. “We are committed to enhancing our cyber-security measures by adopting modern systems that will uphold the integrity of our operations,” he said.

He further noted that this collaboration presents a unique opportunity for local banks to unlock the vast potential within the banking industry, reinforcing Siket Bank’s determination to bolster its technological capabilities.