Financial Crime World

Eritrean Financial Fraud Statistics 2023: Alarming Increase in Fraud Cases Amid Digital Payment Explosion

Introduction

A recent study by PYMNTS, in collaboration with Hawk AI, has revealed that the financial landscape of Eritrea is plagued by a surge in fraudulent activities. The report highlights that over 40% of banks in the country have experienced an increase in fraud cases compared to last year, resulting in a staggering 65% rise in financial losses.

Fraud Statistics

  • Over 40% of banks in Eritrea have experienced an increase in fraud cases compared to last year.
  • Average scam losses reach nearly half a million dollars.
  • Financial institutions (FIs) are struggling to keep up with the pace of fraudulent transactions, driven by the rapid growth of digital banking and faster payment methods.

Top Fraudulent Activities

  • Account information misuse remains the leading type of fraud.
  • Sophisticated cyberattacks are becoming increasingly common.
  • Faster payment rails and complex regulations pose significant challenges for FIs in fighting fraud.

Efforts to Combat Fraud

  • Most FIs will adopt or have already adopted machine learning (ML) and artificial intelligence (AI) technologies in the next year to improve their fraud detection capabilities.
  • Banks of all sizes are investing in new technology systems, with nearly half planning to add or have already added such solutions in the next year.

Challenges in Fighting Fraud

  • Sophisticated cyberattacks
  • Faster payment rails
  • Complex regulations

Conclusion

The report emphasizes the urgent need for FIs to prioritize fraud prevention and detection strategies, citing the alarming increase in fraudulent activities as a major concern. As Eritrea continues to digitize its financial landscape, it is crucial that banks and other financial institutions stay ahead of the curve by investing in advanced technologies and collaborating with experts to combat the growing threat of financial fraud.

Source: PYMNTS and Hawk AI’s “The State of Fraud and Financial Crime in ERITREA 2023”