Financial Crime World

Namibia Grapples with Growing Banking Fraud Problem

As International Fraud Week comes to an end, Namibia’s financial sector is facing a significant challenge in combating fraudulent activities. According to the Association of Certified Fraud Examiners (ACFE), fraud costs billions of dollars each year, causing damage to companies, governments, and individuals.

In 2020, the Bank of Namibia reported a decrease in the amount involved in fraudulent activities from N$29.4 million in 2019 to N$25.7 million, but an increase in financial losses suffered from N$19.8 million to N$20.5 million. The total number of cases also escalated from 238 to 258.

Methods Used by Fraudsters

Nedbank Namibia, one of the country’s leading banks, is urging its clients and the public to be aware of the various methods used by fraudsters to steal money. Some common methods include:

  • Phishing and Smishing: Fake emails or SMS messages claiming to be from a reputable organization.
  • SIM Swaps and Number Porting: Interception of banking notifications and one-time passwords.
  • Malware: Emails with attachments or links containing malicious software that can download onto devices if clicked on.
  • Change of Banking Details Scams: Fraudsters convincing victims to change their banking details to a new account.
  • Deposit Scams: Fraudsters asking victims to deposit money into a fake account.
  • Advanced Fee Scams: Victims are asked to pay a fee for a service that is not provided.
  • Vishing (Social Engineering over the Phone): Fraudsters calling victims, claiming to be from a reputable organization and asking for personal information.

Precautions to Take

Selma Kaulinge, Nedbank’s Communication Manager, emphasized that knowledge is key in preventing fraud. She warned clients to be cautious of calls from unknown numbers claiming to be from Nedbank’s fraud department, asking for personal information such as card numbers, PINs, and internet banking details.

  • Never give out personal information: Nedbank will never ask clients for this information.
  • Do not give third-party control of your computer or share Wi-Fi network passwords.

Conclusion

Kaulinge advised clients to be aware of the common scams and take steps to protect themselves. “If a client’s card PIN or internet banking details have been compromised, they should change it immediately,” she said. By being informed and taking precautions, individuals can reduce their risk of falling victim to banking fraud.