Financial Crime World

Fraudulent Activities in Banking on the Rise in Namibia

As International Fraud Week comes to a close, it is essential to acknowledge that banking fraud remains a growing concern in Namibia. According to the Association of Certified Fraud Examiners (ACFE), fraud encompasses actions meant to deceive for financial or personal gain and costs billions of dollars in damage to companies, governments, and individuals each year.

The State of Banking Fraud in Namibia

Despite efforts by banking institutions like Nedbank Namibia to strengthen surveillance systems and institute internal controls, fraudulent activities continue to plague the sector. In 2020, control measures in place had a positive effect, with the amount involved in fraudulent activities decreasing from N$29.4 million to N$25.7 million. However, the actual financial loss suffered increased from N$19.8 million to N$20.5 million, and the total number of cases escalated from 238 to 258.

Common Methods Used by Fraudsters

Nedbank Namibia is urging clients and the public at large to be aware of the various methods used by fraudsters to steal money. According to Selma Kaulinge, Nedbank’s Communication Manager, “Knowledge is the best defence against fraud.” Clients can protect themselves by understanding the different scams used by fraudsters.

  • Phishing: Fraudsters send emails or social media posts that appear to be from a reputable organization but are actually fraudulent.
  • Smishing: Similar to phishing, but through SMS messages.
  • SIM Swaps and Number Porting: Fraudsters intercept banking notifications.
  • Malware: Used to download malicious software onto devices.
  • Change of Banking Details Scam
  • Deposit Scam
  • Advanced Fee/419 Scam
  • Vishing: Social engineering over the phone.

Red Flags to Watch Out For

Kaulinge warns clients not to trust caller identity and advises them to be cautious of calls from service providers claiming to need access to their Wi-Fi network or computer. She emphasizes that Nedbank will never ask clients for:

  • Internet banking details
  • Passwords
  • Card PIN
  • CVV to reverse a transaction, debit order, open a new account, or link their debit card to their account

Best Practices for Protection

To protect themselves from fraudulent activities, Kaulinge advises clients to:

  • Change passwords immediately if they suspect their card PIN or Nedbank internet banking details have been compromised.
  • Avoid using similar passwords.
  • Be vigilant in protecting themselves from fraudulent activities.

By being aware of the methods used by fraudsters and taking proactive steps to secure their personal information, clients can protect themselves against fraudulent activities.