Financial Crime World

Banking Fraud on the Rise in Namibia: Phishing, Smishing, and Vishing Top Concerns

A recent study by TransUnion has revealed alarming statistics on banking fraud in Namibia. Between September and December 2022, a staggering 34% of Namibian consumers were targeted by fraudulent activities.

Most Common Types of Fraud

The most common types of fraud attempted against Namibians include:

  • Phishing: 28% of targets fell victim to phishing scams, where scammers attempt to trick victims into revealing personal information through fraudulent emails, websites, or social media posts.
  • Smishing: 24% of targets fell victim to smishing scams, which involve fraudulent text messages designed to trick people into revealing sensitive data.
  • Vishing: 20% of targets fell victim to vishing scams, a type of phone scam where callers try to extract personal information from unsuspecting victims.

Consumer Concerns

Despite these figures, Namibian consumers are most worried about:

  • Account takeovers (69%)
  • Identity theft (65%)
  • Stolen credit cards or fraudulent card transactions (64%)

This highlights the need for businesses to prioritize security measures to protect their customers’ data.

Globally, 4.6% of digital transactions were suspected to be fraudulent in 2022, a figure consistent with rates seen in 2019. However, the total volume of suspected digital fraud attempts has increased dramatically due to the surge in online transactions.

In Namibia specifically, the number of digital fraud attempts originating from the country has risen by 80% since 2019, with the gaming sector experiencing an alarming 179% increase.

Expert Insights

Lara Burger, Country Manager of TransUnion Namibia, stressed the importance of businesses taking proactive steps to protect themselves and their customers. “Identity proofing and authentication must be up-to-date and robust to prevent fraud,” she emphasized.

The study also found that:

  • 66% of Namibian consumers reported being targeted by email, online, phone call, or text message fraud schemes.
  • 13% of those targeted fell victim to these scams.
  • Nearly half (47%) placed a freeze on their credit after realizing they were a victim of fraud.
  • 30% contacted the affected company.

Conclusion

As global economic uncertainty continues to rise, fraudsters are expected to adapt and target new sectors. Burger warned that businesses must remain vigilant and innovative in preventing fraud to ensure customer trust and confidence. “At TransUnion, we help businesses prevent fraud using intelligent predictive solutions, delivering better experiences and reassuring customers that their personal data is secure,” she concluded.

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