Botswana Financials Sector Suffers Highest Rate of Digital Fraud in 2023: TransUnion Report
According to the newest findings from TransUnion’s (NYSE: TRU) 2024 State of Omnichannel Fraud Report, Botswana’s financial services industry faced the highest suspected Digital Fraud rate and year-over-year (YoY) growth in 2023.
Botswana’s Digital Fraud Increase in Financial Services Sector
The data from TransUnion’s report showed that:
- The rate of suspected Digital Fraud attempts for financial services transactions originating in Botswana increased by an alarming 196% YoY in 2023, reaching 9.7%.
- This is the highest suspected Digital Fraud rate for Botswana in 2023 and the highest YoY rate growth among sectors with statistically significant data for transactions within Botswana.
- Globally, nearly one in seven (13.5%) newly created accounts were suspected of being created via Digital Fraud in 2023.
Digital Fraud in Botswana vs. Global Trends
In Botswana, the financial services sector faced the highest rate of Digital Fraud attempts, while online gaming continued to see the highest rate:
| Industry | Botswana Suspected Digital Fraud Attempt Rate 2023 | Botswana Suspected Digital Fraud Attempt Rate % Change YoY | Global Suspected Digital Fraud Attempt Rate 2023 | Global Suspected Digital Fraud Attempt Rate % Change YoY |
|---|---|---|---|---|
| Financial services | 9.7% | 196% | 4.3% | 3% |
| Gaming | 3.6% | 105% | 5.3% | -30% |
| Retail | 1.3% | 1% | 8.7% | 21% |
| Communities | 0.4% | -18% | 4.6% | 17% |
| Travel & leisure | 0.2% | -44% | 2.3% | 8% |
Worldwide, 5% of all global digital transactions were suspected to be Digital Fraud in 2023, up 14% YoY and 105% from 2019 to 2023. Retail industry, however, rose to the top with the highest rate of 8.7%.
Impact of Data Breaches on Digital Fraud in Retail
Commenting on the increase in retail industry’s Digital Fraud rate, Kabelo Ramaselwana, TransUnion Botswana’s CEO mentioned, “Retail has consistently been among the industries with the highest suspected fraud attempt rates in recent years. However, in 2023, it rose to the top of the list as a result of credentials stolen in data breaches, which have made it increasingly easy for fraudsters to perpetuate attacks and leave retailers vulnerable to account takeovers.”
TransUnion’s Fraud Determinations
*Some industries were excluded from the Botswana study due to insufficient statistically significant data.
TransUnion’s conclusions on Digital Fraud are based on intelligence from its identity and fraud product suite, TransUnion TruValidate. Customers can determine which transactions meet:
- Denial in real-time due to fraudulent indicators.
- Denial in real-time for corporate policy violations.
- Found to be fraudulent upon customer investigation.
- A corporate policy violation upon customer investigation—compared to all transactions assessed.