Financial Services, Travel and Leisure Industries Experience Highest Digital Fraud Attempt Rates from Namibia
Findings based on proprietary insights from TransUnion’s global intelligence network
As consumers and businesses continue to use digital transactions as a way to engage in commerce, fraudsters are increasingly using them for their own benefit. A new TransUnion (NYSE: TRU) analysis finds that suspected global digital1 fraud is up in the first half (H1)2 of 2023, and while retail and video gaming* were among the most targeted industries worldwide during that timeframe, digital fraud affected all businesses.3
Among all industries worldwide, the suspected digital fraud rate stood at 5.3%, up from 4.5% one year ago. Of all digital transactions made by consumers in Namibia, 1.4% were suspected to be fraudulent attempts in H1 2023.3
For transactions originating from Namibia, financial services and retail had the highest suspected digital fraud attempt rate among industries analyzed in H1 2023 at 3.9% and 3.5% respectively, with the rate in gaming (online sports betting, poker, etc.) third highest at 1.4%.2 Correlating with the higher fraud rates, the number of digital transactions from Namibia in financial services grew by 252% from H1 2022 to H1 2023 and by 23% in retail during that time period.3
For transactions from Namibia, the travel and leisure sector saw the greatest year-over-year (YoY) rise from H1 2022 in the rate of suspected digital fraud attempts among industries analyzed, with an increase of 513%.3
These significant increases in suspected digital fraud attempts, along with the increased adoption of digital transactions, indicate that Namibian businesses and consumers should seek meaningful solutions to prevent fraud.
“It’s not enough to look at fraud rates alone when attempting to measure the impact of digital fraud on any one particular industry or another,” said Lara Burger, country manager at TransUnion Namibia. “There are other factors that need to be considered. These include the overall size of the industry in question, whether that industry is growing and if so, how quickly. Only then is it possible to develop a more comprehensive perspective on just how digital fraud is impacting these industries. In addition, this can help identify where fraudsters may be focusing their efforts in future.”
Financial Services Saw the Greatest YoY Growth in Digital Transactions
and the Highest Suspected Digital Fraud Rate in Namibia
|Industry||Suspected digital fraud attempt rate coming from Namibia H1 2023||Change in number of digital transactions coming from Namibia H1 2022 to H1 2023||Global suspected digital fraud attempt rate H1 2023||Change in number of global transactions H1 2022 to H1 2023|
|Gaming (online sports betting, poker, etc.)|
|Communities (online dating, forums, etc.)|
|Travel and leisure|
Source: TransUnion TruValidateTM data
*Video gaming was not included in Namibia’s reporting as volumes were statistically insignificant
Nearly Seven in Ten Namibian Consumers Report Having Been Targeted by Fraud
This new TransUnion analysis comes on the heels of its recent Q3 Namibia Consumer Pulse Study which explored, among other things, consumer awareness of being targeted by any online, email, phone call or text messaging fraud attempt in the last three months. The survey found that 70% of Namibians reported being targeted; 59% said they hadn’t become a victim and 11% had.4
Among those who said they were targeted, the most reported schemes were money or gift card scams (41%), vishing (fraudulent phone calls designed to trick you into revealing personal data, 35%), and phishing (fraudulent emails, websites, social posts and QR codes meant to steal data, 34%).3
TransUnion came to its digital fraud findings based on intelligence from its identity and fraud product suite, TransUnion TruValidate, which helps secure trust across channels and delivers efficient consumer experiences. The rate or percentage of suspected digital fraud attempts reflect 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.
Download the Omnichannel Fraud in H1 2023 Infographic for more findings including the rate of suspected digital fraud from select countries and regions globally, and the growing problem of synthetic fraud. Specific country and regional data in the analysis include the United States, Brazil, Canada, Chile, Colombia, Dominican Republic, Hong Kong, India, Kenya, Mexico, Namibia, Philippines, Puerto Rico, Rwanda, South Africa, Spain, United Kingdom and Zambia.
Consumers who believe they may be a victim of fraud can find resources and information here.
1 Digital fraud involves the use of phishing emails, false websites, phony mobile apps, fake social media profiles, and other mechanisms to illegally obtain information and defraud consumers and businesses.
2 The first half of the year or H1 refers to January 1 to June 30
3 TransUnion TruValidate data
4 TransUnion Consumer Pulse Survey