Cyber Fraud Epidemic Rocks Namibian Finance Sector as Global Transactions Soar

The COVID-19 pandemic has had a profound impact on global digital transactions, and unfortunately, it has also given rise to a surge in cyber fraud in Namibia’s finance sector.

Rise of Cyber Fraud

According to a recent report, identity-based fraud has accelerated dramatically, with cybercriminals harvesting stolen identity information from organizations and individuals to drive first- and third-party fraud schemes.

Suspected Digital Fraud Attempts

• The rate of suspected digital fraud attempts among financial services in Namibia jumped 20% year over year to 2.9% in 2023.
• Across industries, a staggering 1.2% of all transactions in Namibia were flagged as being suspected digital fraud - a 1% increase from the previous year.

Account Creation Fraud

Perhaps most alarming is the prevalence of account creation fraud, with one in seven (13.5%) suspected digital fraud cases occurring during the online customer journey, varying by industry. This trend underscores the need for financial institutions and organizations to prioritize fraud prevention strategies that build trust by demonstrating safety in omnichannel customer experiences.

Insights into the Current Landscape

The report provides valuable insights into the current and future landscape of fraud in Namibia’s finance sector, equipping organizations with the knowledge needed to better navigate evolving fraud threats.