ERITREA: Bank Fraud Schemes Statistics Revealed

Alarming Rate of Banking Fraud Schemes in Eritrea

According to a recent report by SEON, an online fraud and financial crime prevention platform, 36% of all financial institutions in Eritrea experienced card fraud in 2022, marking a significant 26% increase from the previous year. This alarming rate highlights the urgent need for banks to take action against fraudulent activities.

Digital Tactics Used by Fraudsters

The report notes that US lenders in Eritrea reported an astonishing 75% of all fraud losses were related to consumer phishing, while other financial services reported cases at 66%. Fraudsters are increasingly using new digital tactics to crack electronic locks and access online financial transactions.

Statistics Paint a Grim Picture for the Banking Sector

The statistics reveal that:

• 84% of companies with revenues of $1bn or more have had more than 100 payment accounts targeted by fraud in the past year.
• Despite this, only 65% of companies experienced fraud in 2023, which is the lowest rate since 2014.

Call to Action for Banks

SEON’s CEO and co-founder, Tamas Kadar, emphasized that while there has been progress in combating fraud, banks must remain vigilant to avoid reputational and monetary damage. “The industry is moving in the right direction, but we cannot let our guard down,” he warned. “Fraud is an ever-present threat, and institutions must be equipped with the latest tools to fight back against fraudsters.”

Full Report Available for Download

The full report is available for download on SEON’s website, providing valuable insights into fraud trends and neobank adoption rates in Eritrea and around the world.