Gaming Industry Increasingly Targeted by Suspected Digital Fraud from Eswatini as Total Transactions Soar

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 digital fraud¹ 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 global suspected digital fraud rate stood at 5.3% in H1 2023, up from 4.5% one year ago. Of all digital transactions made by consumers in Eswatini, 1.4% were suspected to be fraudulent attempts in H1 2023.³

For transactions originating from Eswatini, financial services and retail saw the highest suspected digital fraud attempt rate among industries analyzed in H1 2023 at 11.5% and 2.3% respectively, with gaming (online sports betting, poker, etc.) at 1.4%. Gaming saw a dramatic increase – 2,405% – in the number of digital transactions coming from Eswatini in the first half of the year, with suspected attempted fraud volumes in this sector increasing by 1,755% when comparing H1 2022 to H1 2023.³

The significant increases in suspected digital fraud attempts, along with the increased adoption of digital transactions, indicate that Swazi businesses and consumers should seek meaningful solutions to prevent fraud. This is true even in sectors where attempted fraud rates declined, as threat actors adapt quickly to evolving environments to maximize the results of their attempts.

“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 Claire Walters, manager: business operations, Africa Regions at TransUnion. “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.”

Gaming Saw the Greatest YoY Growth in Digital Transactions

while Financial Services had the Highest Suspected Digital Fraud Rate in Eswatini

^{Source: TransUnion TruValidateTM data}

^{*Video gaming was not included in Eswatini’s reporting as volumes were statistically insignificant}

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}