Fraudulent Transactions Identification in Namibia: Retail Industry Leads the Pack

A recent report by TransUnion, a global credit reporting agency, has revealed that Namibians are increasingly concerned about the security of their personal data. According to the study, 53% of respondents do not trust that their information would be secure.

Phishing Scams and Targeted Attacks

The study found that six percent of Namibians surveyed had fallen victim to phishing scams, while 41% had been targeted but did not fall prey. Conversely, 53% stated they had not been targeted at all.

Retail Industry Leads the Way

Interestingly, the retail industry in Namibia recorded the highest rate of suspected digital fraud attempts, with a staggering 3.4% of transactions flagged as suspicious. This represents a significant decrease of 21% year-over-year (YoY), indicating that retailers have been proactive in addressing the issue.

Other Industries Affected

However, other industries such as travel and leisure saw a significant increase in suspected digital fraud attempts, with a 67% rise YoY. Online gaming also experienced a notable surge, with a 37% increase in suspected fraudulent activity.

Global Trends

Across all industries, TransUnion found that 1.2% of transactions where the consumer was in Namibia were flagged as being suspicious, representing a 1% decrease from the previous year.

Globally, the report revealed that nearly one in seven (13.5%) newly created accounts are suspected to be created via digital fraud, largely driven by bad actors using fabricated or stolen identities. This shift in tactics may indicate an attempt by fraudsters to engage earlier in the transactional process.

Industries Most Affected

The study also found that account creation transactions were particularly vulnerable to digital fraud, with retail (44.7%), travel and leisure (36%), and video gaming (31.5%) being among the industries most affected.

Expert Insights

“This early phase new account digital fraud may represent a paradigm shift of sorts among fraudsters globally,” said Lara Burger, country manager at TransUnion Namibia.

Conclusion

The report’s findings highlight the importance of effective fraudulent transactions identification in Namibia, particularly in the retail industry. As the volume of risky transactions continues to rise, it is essential for businesses and consumers alike to remain vigilant against these types of scams.