Financial Crime World

Fraudulent Transactions Soar During Namibia’s Holiday Shopping Season: Study Reveals Alarming Spike in Digital Fraud Attempts

A recent study by TransUnion has highlighted a significant surge in e-commerce fraud during the 2023 holiday shopping season, with Namibia being one of the countries worst affected.

The Study’s Findings

According to the report, the average number of suspected digital fraud attempts on any given day during the period was 87.5% higher than the same period in 2022. This alarming spike in fraudulent transactions has significant implications for online shoppers and retailers alike.

Country-Specific Results

The study found that:

  • 3.1% of e-commerce transactions from Namibia during the holiday season were suspected to be fraudulent, compared to 2.8% for the rest of the year.
  • Globally, the analysis revealed that 3.6% of all e-commerce transactions over the Black Friday period were suspected to be fraudulent.

The study also found that:

  • The average number of suspected digital fraud attempts on any given day during the period globally was 15% higher than the same period in 2022, yet 50% lower than during the rest of the year.
  • The highest rate of suspected digital fraud was recorded on Thursday, November 23, at 5.6%.

Leading Indicators of Fraudulent Transactions

TransUnion’s analysis revealed that:

  • Transactions per IP: This indicator was found to be a leading sign of fraudulent e-commerce transactions during the holiday shopping season globally.
  • Transactions per device: This indicator also emerged as a key indicator of fraudulent activity.

Expert Insights

The study’s findings have been welcomed by TransUnion Namibia country manager Lara Burger, who emphasized the importance of implementing holistic fraud solutions to minimize fraudulent transactions while protecting legitimate ones. “The upcoming holidays mark the biggest shopping season of the year for retailers, but equipping themselves with the proper tools to detect fraud at the first warning sign is a year-round priority,” she said.

Solutions and Tools

TransUnion’s identity and fraud product suite, TransUnion TruValidate™, was used to gather intelligence for the study. The report’s findings are based on interactions which TransUnion customers either denied in real-time due to fraudulent indicators or determined to be fraudulent after a manual review process - compared to all transactions it assessed for fraud.

Accessing the Report and Additional Resources

The full report can be accessed online, providing insights into e-commerce fraud trends across select countries including Namibia. Consumers interested in obtaining their credit report and credit score can also access additional credit planning tools through TransUnion’s website.

Key Takeaways

  • Fraudulent transactions have soared during the 2023 holiday shopping season in Namibia.
  • The average number of suspected digital fraud attempts on any given day was significantly higher than last year.
  • Implementing holistic fraud solutions is crucial for minimizing fraudulent transactions while protecting legitimate ones.
  • Transactions per IP and transactions per device are key indicators of fraudulent e-commerce activity.