Fintech and Financial Crime Risks on the Rise in Namibia: Quarterly Analysis Reveals Shift in Fraudulent Activities
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A recent quarterly analysis by TransUnion has shed light on the evolving landscape of digital fraud in Namibia, with both positive and negative trends emerging.
Decrease in Digital Fraud Attempts from Namibia
According to the report, suspected online fraud attempts from Namibia have decreased by 7.0% compared to the same period last year. This decline is a welcome development, indicating that efforts to combat digital fraud are bearing fruit.
Shifts within Certain Industries
However, the analysis also highlights significant shifts within certain industries, as fraudsters shift their focus to target new vulnerabilities. The sectors most affected by these changes include:
- Telecommunications: Suspected attempted digital fraud rates declined by 39.1% year-over-year.
- Travel and Leisure: Suspected attempted digital fraud rates decreased by an unknown percentage.
- Retail: Suspected attempted digital fraud rates fell by an unknown percentage.
Industries Most Affected
On the other hand, the following industries experienced an increase in suspected digital fraud attempts from Namibia:
- Gambling: A staggering 109.1% year-over-year growth was recorded, with promotion abuse being the most prevalent type of fraud.
- Financial Services: First-party application fraud was the most common type of fraud in this sector.
Insights from the Analysis
The analysis provides valuable insights into the nature and scope of digital fraud in Namibia. According to Amritha Reddy, Head of Fraud at TransUnion South Africa:
“Sophisticated fraudsters are constantly seeking out new opportunities based on vulnerabilities. Companies must stay vigilant and adapt their fraud prevention measures to keep pace with the evolving tactics of fraudsters.”
Recommendations for Organizations
As digital fraud rates stabilize in Namibia, it’s crucial that organizations focus on identifying more legitimate customers and transactions to drive revenue and customer lifetime value. To achieve this, companies should:
- Reduce false positives, false declines, and manual review rates
- Improve their customer experience while maintaining robust security measures
- Stay up-to-date with the latest fraud prevention strategies
Methodology
The analysis was based on intelligence from billions of transactions and over 40,000 websites and apps contained in TransUnion’s flagship identity proofing, risk-based authentication, and fraud analytics solution suite – TruValidate.