TransUnion’s research found that 0.9% of transaction attempts^[1] involving consumers in Botswana in 2025 were suspected to be digital fraud. This is below the global average of 3.8% and represents the lowest rate among the African countries analysed. Despite the year-over-year (YoY) decline in suspected digital fraud from Botswana and globally, fraudsters continue to adapt by turning to high-trust, scam-based tactics that can bypass traditional safeguards.

These are among the findings in the TransUnion H1 2026 Update: Top Fraud Trends report, which draws insights from its global intelligence network to track how fraud patterns are shifting across markets and digital channels.

“Botswana has not experienced widespread fraud, but the nature of fraud risk is beginning to shift,” said Amritha Reddy, senior director of fraud product management at TransUnion Africa. “As digital services become more formal and widely trusted, fraudsters are increasingly targeting these environments. This is a natural stage of digital growth and highlights the need to strengthen protections as confidence in digital services expand.”

Digital Fraud Risk is Highest at Account Creation in Botswana

Even when overall suspected fraud rates appear lower compared to 2024, risk can remain elevated at specific points in the digital consumer lifecycle, particularly where criminals attempt to create or manipulate identities. In Botswana, the highest rate of suspected digital fraud in 2025 across the consumer lifecycle occurred at account creation (2.6%), followed by account login (0.8%) and during financial transactions (0.5%).

Botswana’s fraud profile reflects an early- to mid‑stage digital market where onboarding and account creation remain the primary points of exposure. This mirrors broader global and Africa‑wide trends in markets where digital identity systems are still evolving.

“Experience from other countries shows that this phase does not last indefinitely,” Reddy explained. “As consumers build longer term digital relationships with banks, retailers and service providers, fraud risk tends to move beyond onboarding toward login and account access, often through impersonation or credentials misuse.

“The key takeaway for Botswana is timing,” she added. “Strengthening onboarding and early-stage identity checks now can help prevent more complex fraud patterns emerging as digital adoption accelerates. Early safeguards can make a meaningful difference as the digital ecosystem matures.”

Retail Transactions Show the Highest Suspected Digital Fraud Risk Among Sectors Analysed

Across Africa, suspected digital fraud risk varies by industry, reflecting local user behaviour and where criminals see opportunity. For attempted transactions involving consumers in Botswana, retail recorded the highest suspected digital fraud attempt rate in 2025 at 1.9%.

“Globally and across Africa, fraud often emerges as informal activity gives way to structured, trusted digital services,” Reddy said. “As Botswana continues its transition toward regulated digital ecosystems, it is following well-established international patterns. Embedding security early helps manage risk as adoption grows.”

Chart 2: Top Three Sectors Experiencing Suspected Digital Fraud Attempts from Botswana

Source: TransUnion global intelligence network

What Consumers and Businesses Can Do

As fraud tactics evolve, consumers can help reduce their risk by safeguarding personal information, remaining cautious of unsolicited calls and messages and regularly reviewing their credit information for suspicious activity.

For organisations, the findings reinforce that fraud strategies must extend beyond compliance to actively protect trust across the entire consumer lifecycle, particularly at account creation and at points where criminals attempt to exploit established relationships through scams and impersonation.

“Botswana has the advantage of foresight – the global fraud playbook is already written,” Reddy said. The opportunity now is to act before the next phase arrives.”

TransUnion’s insights are based on a global survey of 12,730 consumers in 18 countries and regions, conducted between Nov. 20–Dec. 9, 2025, alongside intelligence from its suite of TransUnion fraud prevention solutions. To learn more about how TransUnion fraud prevention solutions can help businesses avoid fraud and prevent fraud losses, click here.

Specific country and regional data in the report includes Botswana, Brazil, Canada, Chile, Colombia, Costa Rica, the Dominican Republic, El Salvador, Guatemala, Honduras, Hong Kong, India, Kenya, Mexico, Namibia, Nicaragua, the Philippines, Puerto Rico, Rwanda, South Africa, Spain, the United Kingdom, the United States and Zambia. Download the TransUnion H1 2026 Update to the Top Fraud Trends Report for more information and insights about the global fraud trends.

^[1] Suspected digital fraud attempts reflects those which TransUnion clients determined met one of the following conditions: 1) denial in real time due to fraudulent indicators, 2) denial in real time for corporate policy violations, 3) fraudulent upon client investigation, or 4) a corporate policy violation upon client investigation. The country and regional analyses examined transactions in which the consumer or suspected fraudster was located in a select country or region when conducting a transaction. Global statistics represent every country worldwide and not just the select countries and regions. 

According to the new TransUnion® (NYSE: TRU) H2 2025 Update to the Top Fraud Trends Report, Botswana recorded the highest rate of suspected digital fraud^[1] in the consumer lifecycle at account creation. In the first half of 2025, 2.6% of account creation attempts by consumers in the country were suspected of digital fraud. This is in alignment with account creation fraud being the highest in the consumer lifecycle globally where 8.3% of those types of transaction attempts were suspected of digital fraud in H1 2025.

The report, which draws on proprietary data from TransUnion’s global intelligence network from billions of transactions from over 40,000 websites and apps and a consumer survey across 18 countries, reveals that fraud is growing in certain areas.

“In Botswana, the complexity of digital fraud attacks are accelerating as fraudsters leverage AI, impersonation tactics and social engineering to exploit gaps in verification and awareness,” said Amritha Reddy, senior director of fraud product management TransUnion Africa. “Our global business survey found that financial losses from fraud are growing, indicating that although some defence mechanisms are working fraudsters are shifting tactics, scaling up or moving into less defended sectors.”

According to analysis of TransUnion’s customers in its global intelligence network, digital account takeover volume worldwide grew 21% year-over-year (YoY) from H1 2024 to H1 2025, signalling a rapid escalation. The volume of digital account takeovers surged 141% from H1 2021 to H1 2025, underscoring a persistent rise of this fraud type over time and reflecting the increasing sophistication of fraudsters who exploit stolen credentials and bypass authentication systems.

"As account takeover fraud surges, businesses can no longer afford solely reactive defences,” said Reddy. “The growing sophistication of fraudsters demands a proactive investment in layered security and identity intelligence. In today’s threat landscape, protecting customer accounts is not just a priority, it’s a business imperative."

Highest Rate of Suspected Digital Fraud in Video Gaming

Among industries analysed globally, the video gaming sector recorded the highest percentage of suspected digital fraud attempts in the first half of 2025, reaching 13.5%. This represents a significant 28% rate increase compared to the same period in 2024, underscoring the growing vulnerability of this sector to fraudulent activity.

For transactions where the consumer was in Botswana, the rate of suspected digital fraud attempts in H1 2025 was the highest in the gaming industry, which includes online sports betting and poker, at 1.8%.

Chart 2: Suspected Digital Fraud Attempts in Botswana, by Sector

^{Source: TransUnion global intelligence network}

“As the risk from consumer scams threatens identity integrity, organisations should rely on a mixture of data, risk signals, technology and tools to prevent fraud,” said Reddy. “The report highlights that business leaders rank^[2] identity verification, device reputation and behavioural biometrics as the leading three fraud prevention technologies.”

“Businesses and financial institutions should also invest in sustained education and awareness campaigns to mitigate against schemes like account takeovers. Preventing fraud must by necessity be a multi-pronged strategy, if businesses and consumers are to stay ahead of fraudsters whose strategies continue to evolve too,” she said. “By harnessing advanced technologies, fostering cross-sector collaboration, and prioritising consumer trust, Botswana can chart a path toward a secure and inclusive digital future.”

Consumer-Reported Exposure to Fraud High Amid Gaps in Awareness and Prevention

Globally, consumers continue to face a wide range of scams, with tactics often tailored to regional behaviours and vulnerabilities. TransUnion’s survey found that 48% of consumers surveyed globally reported being targeted by email, online, phone call or text messaging fraud from February to May 2025, with 74% of Batswana saying the same thing. Globally, 52% were unaware that they were targeted, as were 26% of Batswana, indicating potential fraud under-recognition and a gap in fraud awareness.

Consumers in five of the six African countries surveyed reported money or gift card scams as the most experienced fraud type. In Botswana, money or gift card scams was the most common fraud type – reported by 43% of those who said they were targeted with fraud from February to May 2025. Among those Batswana who said they were targeted, the next most frequently reported scams were smishing (39%), vishing (39%), and phishing (38%), with these three designed to deceive individuals into giving up their valuable personal or financial information.

Botswana Had the Lowest Percentage of Respondents in Africa Indicating They Fell Victim to Fraud from February to May 2025

   ^{Source: TransUnion consumer survey}

“As Botswana’s digital economy accelerates, so do the risks. Fraudsters are exploiting gaps in awareness, infrastructure and security. The country has laid a strong digital foundation. Now is the time to strengthen it, and a coordinated response is essential. By leveraging data intelligence, AI-driven fraud prevention, cross-sector collaboration and public education, we can outpace emerging threats and build a digital ecosystem rooted in trust,” said Reddy. “A safer digital Botswana is achievable when trust becomes a shared responsibility. As scammers continue to evolve their tactics to enrich themselves, it’s more important than ever for consumers to regularly review their credit reports to ensure all listed information is accurate.”

TransUnion came to its conclusions about digital fraud based on intelligence from its array of TransUnion fraud prevention solutions. To learn more about how TransUnion fraud prevention solutions can help businesses avoid fraud and prevent fraud losses, click here.

Specific country and regional data in the report includes Botswana, Brazil, Canada, Chile, Colombia, Costa Rica, the Dominican Republic, El Salvador, Guatemala, Honduras, Hong Kong, India, Kenya, Mexico, Namibia, Nicaragua, the Philippines, Puerto Rico, Rwanda, Spain, South Africa, the United Kingdom, the United States and Zambia. Download the TransUnion H2 2025 Update to the Top Fraud Trends Report for more information and insights about the global fraud trends.

^{[1] Suspected digital fraud attempts reflect those which TransUnion customers determined met one of the following conditions: 1) denial in real time due to fraudulent indicators, 2) denial in real time for corporate policy violations, 3) fraudulent upon customer investigation, or 4) a corporate policy violation upon customer investigation.}

^{[2] As found by TransUnion’s online business survey conducted from 29 May to 6 June 2025 in partnership with third-party research provider, Dynata. Findings were included in TransUnion’s H2 2025 Update to the Top Fraud Trends Report}

Information and insights company TransUnion Botswana has published its Q2 2025 Consumer Pulse Study* which showed that only one third (33%) of Batswana respondents reported a growth in their income in the last three months, while 49% said their finances were worse than planned. One quarter (25%) were affected by job losses – nine percentage points more than said the same thing one year ago.

Despite this, 77% remained optimistic about their future finances, with Gen Z consumers (aged 18-28) being the most hopeful group with 83% feeling optimistic about their future. Nearly nine in 10 (87%) of this cohort expected their incomes to increase in the next year – 10 percentage points more than those who said the same a year ago.

Consumers’ most significant financial concerns are inflation, job security and housing prices. Nearly eight in 10 (78%) put inflation as one of their top three financial concerns followed by job losses and housing prices (rent or mortgage) each at 55%.

Likely in response to these concerns, 53% of consumers indicated they cut back on discretionary spending (dining out, travel, entertainment) in the past three months, 34% cancelled subscriptions or memberships and 30% cancelled or reduced digital services (e.g., wireless, cable TV, internet).

Looking forward to the next three months, 57% of surveyed consumers expected to reduce their discretionary spending – significantly more than the proportion of respondents who expected discretionary spending to remain the same (17%) or increase (22%). At the same time, 42% anticipated reducing spending on large purchases.

“These trends suggest that consumers in Botswana are scaling back their short-term spending to prioritise long-term financial goals and essential expenses,” said Kabelo Ramaselwana, CEO of TransUnion Botswana. “Trimming non-essential costs is a smart strategy to build and maintain financial stability and resilience.”

Taking intentional steps towards financial sustainability will help the 34% of Batswana who are expecting to miss at least one bill or loan payment in the next quarter. Of those facing this challenge, 42% plan to explore additional job opportunities or take on gig work to boost their available funds, 38% plan to make partial payments, and 25% intend to use their savings to address the shortfall.  

Gen Z and Millennials Lead the Charge in Credit Applications Amid Access Concerns

During the quarter surveyed, 95% of respondents considered access to credit important, yet only 41% felt they had sufficient access. This shows a gap between the importance of credit access and consumer confidence, pointing to a need for more inclusive lending. Looking ahead, 39% of respondents planned to apply for new or refinanced credit within the next year. Among these, 42% intended to apply for a new personal loan (six percentage points higher than Q2 2024), while 30% planned to seek a new home loan. Additionally, 17% expressed interest in applying for a new car loan or lease, or student loan.

Among those intending to apply for new credit or to refinance existing credit, most were Gen Z consumers (43%) followed by 37% of Millennials (aged 29-44) and 35% of Gen X (aged 45-60).

“Gen Z and Millennial consumers are entering the workplace and embracing the lifestyle elements that come with establishing a career and a family, while also taking a strategic approach to credit - carefully managing and monitoring their credit profile to enable confident transactions with financial institutions to empower themselves to achieve great things,” says Ramaselwana.

Financial Literacy Gaps Persist, Opportunities for Alternative Data Identified  

In Q2 2025, many surveyed consumers in Botswana recognised the importance of credit monitoring: 37% of respondents considered it extremely important and 38% rated it as very important. Despite this awareness, only 48% of respondents reported checking their credit at least monthly followed by 13% who did so quarterly. Alarmingly, 27% said they don’t monitor their credit, though this is a five-percentage-point improvement from the previous year. This gap highlights the need for improved financial literacy and easier access to credit tools. Among those who did monitor their credit, 45% focused on report accuracy, 38% aimed to prevent fraud and 37% wanted to improve their credit scores.

Over half of respondents (51%) believed their credit profiles would improve if businesses used information not on the standard credit report, such as rental payments, gym membership payments and other alternative data. Medium-income consumers (N$300,001 to N$800,000 per annum) were the most optimistic as 55% believed their credit profiles would improve if alternative data were considered beyond traditional credit reports.

^{* TransUnion’s Consumer Pulse Survey of 251 adults was conducted 5–25 May 2025 by TransUnion in partnership with third-party research provider Dynata. Adults 18 years and older residing in Botswana were surveyed using an online research panel method across a combination of desktop, mobile and tablet devices.}

Globally, TransUnion found communities experienced the highest rate of suspected digital fraud attempts in 2024. Nearly 12% of all attempted transactions within communities were suspected to be digital fraud last year. This was closely followed by video gaming (11%), with gaming at 8% and retail (8%) rounding out the top four.

The logistics industry, which has seen growth in shipping fraud (often perpetrated by organised crime rings), saw the greatest suspected digital fraud volume growth globally in 2024, up more than 100% over 2023. That being said, the fraud rate remains at a relatively modest at 3%. Gaming also saw a significant year-over-year (YoY) volume change, up 20%. Telecommunications (-79%), insurance (-29%) and video gaming (-23%) saw the greatest decreases in suspected digital fraud volume YoY.

“Digital fraud on community platforms is by no means a new phenomenon. In 2024, it appears that fraudsters targeted these areas with a renewed vigour,” said Amritha Reddy, senior director of fraud solutions at TransUnion Africa. “Cybercriminals take advantage of the trust inherent on community-based platforms, and target members with a wide range of scammer solicitations, the most reported type of digital fraud in communities.

“It is encouraging to see that attempts at digital fraud have decreased across all but two of the surveyed industries in Botswana,” Reddy says. “Organisations that draw on identity, device and behavioural insights to help them interact with legitimate consumers while mitigating fraud risk are more likely to protect themselves and their customers from the scourge of digital fraud.”

Highest Digital Fraud Rates Across Leading Industries in Botswana

Source: TransUnion TruValidate™                                                                     

*Insurance, government, video gaming, logistics, travel and leisure and communications were not included due to low transaction volumes in these sectors

Fraud Comes with a Heavy Cost to Consumers

Consumers faced significant losses due to fraud. Among consumers TransUnion surveyed in 18 countries and regions in November and December 2024, 29% said they lost money due to email, online, phone call or text messaging fraud in the last year. The survey determined that the median amount those consumers said they lost due to fraud in the past year was BWP23,957^[2].

TransUnion came to its conclusions about digital fraud based on intelligence from TransUnion TruValidate.

Specific country and regional data in the report includes Botswana, Brazil, Canada, Chile, Colombia, the Dominican Republic, Guatemala, Hong Kong, India, Kenya Mexico, Namibia the Philippines, Puerto Rico, Rwanda Spain, South Africa, the United Kingdom, the United States and Zambia. Download the TransUnion H1 2025 Update to the State of Omnichannel Fraud Report for more information and insights about the global fraud trends.

^{[1] The rate or percentage of suspected digital fraud attempts reflects those which TransUnion customers determined met one of the following conditions: 1) denial in real time due to fraudulent indicators, 2) denial in real time for corporate policy violations, 3) fraudulent upon customer investigation, or 4) a corporate policy violation upon customer investigation — compared to all transactions assessed. The country and regional analyses examined transactions in which the consumer or suspected fraudster was located in a select country or region when conducting a transaction. Global statistics represents every country worldwide and not just the select countries and regions.}

^{[2] Based on the exchange rate on 23 April 2025}

The analysis reviewed attempted ecommerce transactions from across the globe and found that 4.6% worldwide were suspected to be Digital Fraud over the same period. Based on proprietary insights from TransUnion’s global intelligence network, TransUnion found that the global suspected Digital Fraud rate was down from 6.0% during the same period in 2023.

The study determined that the average volume of suspected Digital Fraud attempts on any given day during that holiday period globally was 30.2% lower than the same period in 2023 and 5.9% lower than during the rest of the year (1 January 2024 to 27 November 2024).

The Percentage of Suspected Ecommerce Fraud during Black Friday season vs. Overall

Source: TransUnion TruValidate™

“Across Africa, we have observed that Black Friday shopping has extended beyond the original five-day period, with retailers promoting sales throughout the entire month of November. We anticipate that the general lengthening of the holiday shopping season were factors in the decline in suspected Digital Fraud during the time under analysis compared to the rest of the year for most Africa countries,” said Amritha Reddy, senior director for solutions at TransUnion Africa. “For online retailers, this speaks to the need to maintain diligence year-round. For the remainder of this holiday shopping season, and beyond, online retailers must continue to implement tools that maintain a friction-right experience, wherein both business and consumer is protected without major disruption.”

The greatest fraud disruptions globally over the analysed period occurred on Thursday, 28 November with 5.3% of all attempted digital retail transactions on that day suspected to be Digital Fraud. The analysis also revealed the retail suspected Digital Fraud rate for each day in the analysed shopping period for attempted transactions where the consumer was in each of the six African countries studied, and highlighted the day on which the most suspected Digital Fraud took place.

The Suspected Ecommerce Fraud Rate Varies for Each Day of the 2024 Holiday Shopping Weekend

Source: TransUnion TruValidate

As part of this analysis, TransUnion also determined the top signals indicating risk of fraudulent ecommerce transactions during the holiday shopping season globally. This year, unusually high transaction volume from a single device and devices being newly associated with an account were among the leading indicators for potential fraud attempts.

“This international shopping period is always hugely impactful to retailers’ bottom lines, and our recent Consumer Pulse Study that consumers may be particularly eager to buy during this holiday shopping season,” said Reddy. “It’s as important as ever for retailers to equip themselves with the tools they need to detect fraud early. These tools can help minimise fraudulent transactions while at the same time protecting legitimate transactions. Retailers should seek to implement holistic fraud solutions that can verify customer identity and authenticity as early as possible during a transaction.” 

Consumers and businesses can take steps to prevent fraudulent activity:

For consumers:

1. Verify website security: Ensure that the websites you shop from use secure protocols (look for "https" in the URL).
2. Be sceptical of unrealistic deals: Bad actors often lure shoppers with "too good to be true" discounts.
3. Use secure payment methods: Utilise verifiable, trusted, and secure payment methods.
4. Protect personal information: Share only necessary information during transactions to avoid identity theft.
5. Monitor financial statements: Regularly review bank and credit card statements, store cards, etc., for unauthorised activity.
6. Beware of phishing scams: Avoid clicking links or downloading attachments from unknown emails or texts.
7. Strengthen account security: Use strong, unique passwords and enable multi-factor authentication on critical accounts.

For businesses:

1. Train employees: Educate employees on spotting fraud threats.
2. Communicate with consumers: Send warnings on fraud tactics and how to verify legitimate vs. illegitimate transactions.
3. Leverage real-time fraud verification tools: Monitor transactions closely for anomalies, especially during peak shopping periods.
4. Establish clear protocols: Set clear protocols for reporting and responding to fraudulent attempts.

These preventive measures are crucial, especially considering TransUnion's findings on Digital Fraud. TransUnion came to its conclusions about Digital Fraud based on intelligence from its identity and fraud product suite that helps secure trust across channels and delivers efficient consumer experiences – TransUnion TruValidate. The rate or percentage of suspected Digital Fraud attempts reflects those which TransUnion customers determined met one of the following conditions: 1) denial in real time due to fraudulent indicators, 2) denial in real time for corporate policy violations, 3) fraudulent upon customer investigation, or 4) a corporate policy violation upon customer investigation — compared to all transactions assessed. The country and regional analyses examined transactions in which the consumer or suspected fraudster was located in a select country and region when conducting a transaction. Global statistics represent every country worldwide.

To find out how this data varies by select countries and more, TransUnion’s holiday fraud trends can be found here.

In the first half (H1) of 2024, 3.0% of all attempted digital transactions where the consumer was located in Botswana were identified as suspected Digital Fraud in a recent TransUnion® (NYSE:TRU) analysis. Botswana had the fifth lowest rate of suspected Digital Fraud in the first half of 2024 out of the 19 countries and regions for which TransUnion provided regional breakdowns.

TransUnion also determined that gaming, financial services and retail were the industries that had the highest suspected Digital Fraud rate for transactions where the consumer was in Botswana during the analysis period.

Some of these findings are in the newly released TransUnion H2 2024 Update to the State of Omnichannel Fraud Report, which explores fraud trends in the first half (Jan. 1-June 30) of this year. It found that some industries were particularly targeted, even though Digital Fraud affects many industries in Botswana.

This is at a time when 77% of Botswana consumers said in Q2 2024 that they were targeted with online, email, phone call or text messaging fraud attempts in the last three months, and of those consumers only 5% reported falling victim^[1].

“Despite the good-faith efforts that are being made by global organisations to identify and prevent fraud to date, fraudsters continue to evolve. In that sense, businesses should ensure that they are taking advantage of fraud prevention technologies such as identity verification, IP intelligence, device reputation and synthetic identity detection as critical components of their fraud prevention programs,” said Amritha Reddy, senior director of fraud solutions at TransUnion Africa.

Table 1: Industries with the Highest Rate of Suspected Digital Fraud Attempts Where the Consumer was in Botswana in H1 2024

Source: TransUnion TruValidate™

The communities industry experienced the largest percentage (11.5%) of suspected Digital Fraud globally in H1 2024, according to data in TransUnion TruValidate. Globally, TransUnion’s communities customers reported profile misrepresentation (where a user posts inaccurate information in a profile and/or uses bogus profile photos) as the most frequent type of Digital Fraud they witnessed in H1 2024. Communities was the industry with the highest suspected Digital Fraud rate in seven of the 19 countries and regions for which TransUnion provided breakdowns in H1 2024.

New Account Fraud Risk Threatens Digital Experiences

Digital fraud can occur at different steps in a customer’s transaction process, and more than two-thirds of business leaders surveyed by TransUnion indicated that at least 25% of their organisation’s new account openings are done online, with more than a third saying that it was 51% or more^[2]. For transactions where the consumer was in Botswana, 3.7% of digital account opening attempts were suspected of Digital Fraud, with 3.1% of digital account login attempts also being suspected of Digital Fraud in H1 2024.

“Digital Fraud waxes and wanes, but the trends in cybercrime and consumer scams are clear,” said Kabelo Ramaselwana, CEO TransUnion Botswana. “Now and in the future, organisations face more sophisticated cybercriminals weaponizing identity data at scale to perpetuate first- and third-party fraud schemes. Fraud prevention is a necessary cost that needs to be as efficient as possible, using better data and risk signals, advanced analytics, and integrated technology, without increasing lost business and additional expense from false positives.”

TransUnion also determined synthetic identity fraud (the use of personally identifiable information or PII to fabricate a person or entity in order to commit a dishonest act for personal or financial gain) was the fastest growing Digital Fraud type volume-wise globally reported to TransUnion by its customers from H2 2023 to H1 2024, increasing 153%. Electronic fund transfers (also known as ACH/debit payments) fraud saw the highest YoY volume growth worldwide, up 113% from H1 2023 to H1 2024. However, promotion abuse (consumers or fraudsters taking advantage of marketing offers to receive unintended financial incentives) was the most common Digital Fraud type globally in H1 2024, accounting for 3.6% of all Digital Fraud reported to TransUnion by its customers.

About the Analysis

TransUnion came to its conclusions about Digital Fraud based on intelligence from its identity and fraud product suite that helps secure trust across channels and delivers efficient consumer experiences – TransUnion TruValidate. The rate or percentage of suspected Digital Fraud attempts reflects those which TransUnion customers determined met one of the following conditions: 1) denial in real time due to fraudulent indicators, 2) denial in real time for corporate policy violations, 3) fraudulent upon customer investigation, or 4) a corporate policy violation upon customer investigation — compared to all transactions assessed.

Download the TransUnion H2 2024 Update to the State of Omnichannel Fraud Report to learn more. Specific country and regional data in the report include Botswana, Brazil, Canada, Chile, Colombia, the Dominican Republic, Hong Kong, India, Kenya, Mexico, Namibia, South Africa, the Philippines, Puerto Rico, Rwanda, Spain, the United Kingdom, United States, and Zambia.

^[1] TransUnion survey of 500 Botswana consumers from May 1-20, 2024

^[2] TransUnion business survey of 801 business leaders from May 14–29, 2024

According to information and insights company TransUnion’s latest Consumer Pulse Study, Botswana’s economic landscape is showing positive shifts in the second quarter of 2024.

Household incomes improved, with 41% of consumers reporting income increases over the past three months, a notable rise of four percentage points from the previous year, and a figure that is almost double the number of households that saw a decline in income (21%). This improvement aligns with 25% of households starting new businesses to increase their income, as well as Botswana’s formal sector earnings, which saw a 13.1% increase by the end of last year, compared to 8% wage growth in 2022.

Further compounding the positive macroeconomic climate, the inflation rate has decelerated significantly, to 3.4% (January – April) in 2024, down from 5.1% in 2023 and a peak of 12.2% in 2022. While inflation is expected to average out at 4% for the year, this significant decrease is contributing to a feeling of improved financial wellbeing and buoyancy. Optimism about future income has risen, with 77% expecting an increase over the coming 12 months (up three percentage points compared to 2023).

Kabelo Ramaselwana, Country Manager at TransUnion Botswana, notes that the slowdown in inflation supports disposable income growth and these economic improvements and income increases are being managed responsibly by Botswanan consumers. “However, it is possible that the high unemployment rate combined with income inequality are putting the brakes on and could further limit household spending growth in the near-term.”

Ability to pay bills is vastly improved

According to the study, 74% of consumers expect to be able to pay their bills in full, with the proportion of households struggling to make payments down by eight percentage points to 26% compared to the same time last year. Of this struggling segment, 43% plan to make at least partial payments. A further 21% plan to dip into their savings to service their debt responsibilities and, in an increase of seven percentage points from 2023, 11% plan to take out a personal loan to cover their bills.

As households gain traction towards financial stability, 25% are focusing on paying down their debt faster and 29% are building financial resilience with increased contributions to emergency funds.

Consumers are also cutting back on non-essential expenditure, with 56% of respondents reducing their discretionary spending over the past three months, with 28% cancelling subscriptions and memberships. Looking ahead, consumers plan to focus on paying bills and loans (46%), boost retirement funds and investing (45%), and pay for medical care and services (42%).

Credit and financial inclusion

Access to credit remains crucial for Botswana’s consumers, with 96% considering it important. Perceived access to credit improved markedly by 10 percentage points from last year as 45% felt adequately served, notably among Millennials (27–42 years old) at 48% and Gen X (43–58 years old) at 49%. Looking ahead, 33% of consumers plan to apply for new or refinance existing credit, with Millennials (34%) showing the highest demand.

Among those planning to apply for new or refinance existing credit within the next year, 37% indicated a demand for new personal loans, reflecting a notable nine percentage-point increase from the prior year. Gen Zs (48%) and Millennials (35%) were the most interested in acquiring personal loans while, overall, 34% were considering new home loans, a significant 12 percentage-point rise from the previous year.

However, 50% of potential borrowers abandoned their plans to take out new credit, with 31% citing the high cost of credit as the reason for this decision.

Monitoring credit reports

Monitoring their credit status is viewed as extremely, very or moderately important by 85% of consumers, yet only 44% review their credit reports monthly. A growing number of consumers (55%, up from 46% last year) believe that incorporating alternative data, such as rental payments would improve their credit scores.

Fraud and consumer education

Digital fraud remains a concern, with 72% (up nine percentage points) of respondents having been targeted by fraud schemes, although only 5% fell victim, a decrease from 8% the previous year. Vishing (47%), phishing (40%), and smishing (38%) are the most prevalent scams. Surprisingly, 23% of consumers reported being unaware of any targeted fraud schemes. Nearly all (96% in Q2 2024, up from 94% the previous year) consumers expressed concerns about sharing personal information. Their main concerns included fear of invasion of privacy (84%), worries about identity theft (77%), and receiving unsolicited marketing communications (36%).

“These findings highlight the importance of robust data protection measures and privacy policies. Addressing these concerns is crucial for businesses to build consumer trust and ensure responsible data handling practices. At the same time, consumers should check their credit reports regularly to flag any possible fraud that affects their credit scores, as early as possible,” says Ramaselwana.

Consumers can learn more about their credit profile from TransUnion here.

TransUnion found across industries in 2023, 3.0% of all transactions where the consumer was in Botswana were flagged as being suspected Digital Fraud – an 85% YoY increase.

The TransUnion report revealed that nearly one in seven (13.5%) newly created accounts are suspected to be created via Digital Fraud globally in 2023, largely driven by bad actors using fabricated or stolen identities. This may indicate a shift in the tactics deployed by fraudsters hoping to engage earlier in the transactional process.

Examples of the types of transactions that take place during the account creation process include account signup, registration and loan origination. Among the industries globally that saw the highest percentage of digital account creation transactions suspected to be Digital Fraud globally in 2023 were retail (44.7%), travel and leisure (36.0%), and video gaming (31.5%).

“This early-phase new account Digital Fraud may represent a paradigm shift of sorts among fraudsters globally,” said Kabelo Ramaselwana, chief executive officer at TransUnion Botswana. “In lieu of using traditional tactics to gain access to and ultimately compromise existing accounts, they are increasingly choosing to create new accounts that they can control themselves. These fraudsters leverage synthetic identities assembled in large part through the use of credentials gathered as a result of one or multiple data breaches.”

In contrast, for transactions where the consumer was in Botswana, the highest percentage of suspected Digital Fraud in the online customer journey occurred at account login, at 13.0%, varying widely by industry.

Retail Saw the Highest Suspected Digital Fraud Rate in 2023 Globally, While Online Gaming Continues to See the Highest Rate in Botswana*

Source: TransUnion TruValidate™

The study found that 5% of all global digital transactions were suspected to be Digital Fraud in 2023, with the volume of risky transactions up 14% YoY and 105% from 2019 to 2023. This growth continues to outpace the growth in digital transactions, which rose 90% from 2019 to 2023.

Globally, retail surpassed gaming as the industry seeing the highest rate of suspected Digital Fraud in 2023 at 8.7%, up 21% YoY. In addition, the telecommunications industry saw a 111% YoY increase in the suspected Digital Fraud rate, up to 4.5%.

“In recent years, the global retail industry has consistently been among those with the highest suspected fraud attempt rates. However, in 2023 it climbed to the top of the list,” said Ramaselwana. “As a result of credentials stolen in data breaches, often in industries other than retail, it has become increasingly easy for fraudsters to perpetuate attacks that leave retailers vulnerable to account takeover.”

TransUnion came to its conclusions about Digital Fraud based on intelligence from its identity and fraud product suite that helps secure trust across channels and delivers efficient consumer experiences – TransUnion TruValidate. The rate or percentage of suspected Digital Fraud attempts reflect those that TransUnion customers determined met one of the following conditions: 1) denial in real time due to fraudulent indicators, 2) denial in real time for corporate policy violations, 3) fraudulent upon customer investigation, or 4) a corporate policy violation upon customer investigation —compared to all transactions assessed.

 The report’s findings are based on proprietary insights from TransUnion’s global intelligence network, and includes data from Botswana, Brazil, Canada, Chile, Colombia, the Dominican Republic, Hong Kong, India, Kenya, Mexico, Namibia, the Philippines, Puerto Rico, Rwanda, South Africa, Spain, the United Kingdom, the United States, and Zambia.

*Some industries were excluded from the Botswana study due to a lack of statistically significant data.

TransUnion’s Q2 2023 Consumer Pulse Study^[2] shows that nearly a third (34%, up four percentage points from Q3 2022) of consumers expect to be unable to pay at least one of their current bills and loans in full. Of those consumers, almost a quarter (24%) plan to borrow from a friend or family member to help pay some of their current bills and loans. Overall, nearly one in four (38%) anticipate increased spending on bills and loans, over half (53%) expect to reduce their discretionary spending (dining out, travel and entertainment) and nearly a third (32%) say they’ll decrease large purchases such as appliances and vehicles in the next three months.

“Macroeconomic pressures remain top-of-mind for many consumers, and this cuts across all sectors of society. What they used to buy for 10 pula now costs 15. They’re worried about inflation, rising interest rates, affordability of basic needs (housing, transport and food prices), and this is affecting how they are managing their household finances,” said Kabelo Ramaselwana, chief executive officer of TransUnion Botswana.

Despite decreased future spending, there is a welcomed sign of incomes that appear to be growing. Nearly four in 10 (37%, 11 percentage points higher than Q3 2022) Botswana consumers report an income increase over the last three months. A similar number (38%) said their income level stayed the same and one in four (25%) said their income decreased. Encouragingly, more than seven in 10 (75%) expect their incomes to increase over the next 12 months.

While steady or increasing income levels may help mitigate the effects of inflation and increased debt levels, concerns over cost-of-living and interest rate increases continue to impact spending behaviour for many consumers. Shifts in household spending included cutting back on discretionary spending (63%, up 25 percentage points from Q3 2022), cancelling subscriptions or memberships (35%) and reducing digital services expenses (27%, up 8 percentage points from Q3 2022) in the last three months.

“Overall, the study suggests that consumers are taking a prudent approach in managing their finances in the face of economic uncertainty, including reining in spending and managing their debt levels, with nearly a quarter – 24% – saying they were paying down debt faster,” said Ramaselwana.

Debt levels remain a key concern for many consumers, with higher interest rates affecting decisions to apply for additional credit or refinance. A third of Botswanans (33%) plan to apply for or refinance credit in the next 12 months. Of those who plan to apply, new personal loans are the most common product (27%), followed by new mortgages (22%) and new credit cards (21%).

Managing financial choices

Nearly all consumers (94%) believe access to credit and lending products is important to achieve their financial goals. However, around two in three (65%) believe they lack adequate access to credit and lending products. Younger generations are especially concerned: 73% of Gen Z (born 1995–2004) and 62% of Millennials (born 1980–1994) were unsatisfied with their credit access.

Most consumers (93%) acknowledge the significance of credit monitoring, but less than half of consumers (43%) reported checking their credit reports at least monthly. Ramaselwana says it is especially concerning that nearly a third (32%) of consumers said they didn’t monitor their credit reports at all. This highlights the need for more education and tools to support regular credit monitoring.

Almost half (46%) of respondents believed their credit scores would increase if financiers incorporated non-standard information into their assessments, such as rental payments and nontraditional payment data (i.e., gym memberships) to help ease or make full assessments of the individual if credit information is limited.

Identity risks and usage

Digital fraud attempts are becoming an increasing issue, with 72% of those surveyed reporting being targeted by online, email, phone call or text message fraud attempts over the past three months. The most common types of fraud schemes among those reporting being targeted included money or gift card scams (51%), vishing (fraudulent phone calls to trick consumers into revealing their data, 38%) and phishing (fraudulent emails, websites, social media posts or QR codes designed to steal data, 35%).

As a result, consumers are concerned about the security of their personal information, with 94% expressing concern about divulging their details. Eight in 10 (80%) are worried about identity theft, and nearly the same number (77%) worry about invasions of their privacy when asked about the reason for being concerned with sharing personal information. The data highlights the crucial importance of trust and robust cybersecurity measures in financial transactions and interactions.

ENDS

Notes to Editors:

TransUnion’s Consumer Pulse Study was conducted in Botswana for the first time in Q3 2022. The Study was conducted again in region in Q2 2023.

^[1] Trading Economics source here.

^[2] The survey polled 401 adult Botswana consumers between 5–22 May 2023.

According to the TransUnion Consumer Pulse Study for Q2 2023, the major drivers for increases in income included starting a new business (22%), increased salary (20%) or finding a new job (14%). Conversely, job loss (20%) was the primary cause of decreased incomes, highlighting the significance of employment stability for households’ financial well-being.

As a result, many families made budget adjustments in the past quarter, including cutting back on discretionary spending (63%), canceling subscriptions or memberships (35%) and reducing digital services expenses (27%).

This cautious outlook on expenditures suggests that consumers are prioritising financial responsibility, indicating a noteworthy shift in spending habits, says Weihan Sun, Director of Research and Consulting at TransUnion Africa.

To meet their financial obligations, consumers are employing a range of tactics. Overall, 41% plan to make partial payments, 28% will dip into their savings and 24% will look to borrow money from friends or family members. And while 38% anticipate increased bills and loans and 53% expected a continued decline in discretionary spending, nearly a third (32%) expected to reduce large purchases such as appliances and vehicles.

Managing financial choices

Nearly all consumers (94%) believe access to credit is crucial. However, around two in three (65%) believe they lack adequate access to credit and lending products. Younger generations are especially concerned: 73% of Gen Z (born 1995–2004) and 62% of Millennials (born 1980–1994) were unsatisfied with their credit access.

One in three consumers plan to acquire new credit or refinance existing credit. In all, 44% of Gen X (born 1965–1979) respondents plan to apply for new credit products within the next year. Overall, 27% of respondents plan to apply for a personal loan, 22% a new mortgage, and 21% a credit card. Four in 10 (41%) of respondents considered applying for credit but ultimately abandoned their plans, either finding an alternative source (26%) or feeling the cost of new credit or refinancing was too high (24%).

Most consumers (94%) acknowledge the significance of credit monitoring, but less than half of consumers (43%) regularly check their monthly credit reports. However, Sun says it is ‘concerning’ that 32% of consumers do not monitor their credit reports. This highlights the need for more education and tools to support regular credit monitoring.

Almost half (46%) of respondents believed their credit scores would increase if businesses incorporated non-standard information into their assessments, such as rental payments, gym membership payments, short-term loan history, and buy now, pay later (BNPL) services.

Half of respondents conduct at least 25% of their transactions online, with Gen Z leading this trend, but Gen X and Millennials (at 58% and 50%, respectively) are also conducting significant numbers of online transactions.

Identity risks and usage

Digital fraud attempts remain a pressing issue, with 64% of those surveyed being targeted by such schemes over the past three months, and 8% were targeted and fell prey to these schemes. The most common types of fraud schemes included money or gift card scams (51%), vishing (fraudulent phone calls to trick consumers into revealing their data, 38%) and phishing (fraudulent emails, websites or social media posts designed to steal data, 35%).

As a result, consumers are concerned about the security of their personal information, with 94% expressing concern about divulging their details. Eight in 10 (80%) are worried about identity theft, and nearly the same number (77%) worry about invasions of their privacy. The data highlights the crucial importance of trust and robust cybersecurity measures in financial transactions and interactions.

“Overall, it’s clear that consumers are increasingly aware of the risks associated with digital fraud. With rampant scams, consumers are cautious about sharing personal information, fearing privacy invasion and identity theft. This indicates a significant need for stronger security measures and robust fraud prevention strategies in the digital space,” said Sun.

Consumers can get their free annual credit report from TransUnion here.

In all, 26% of respondents to TransUnion’s quarterly Consumer Pulse Study¹ said their incomes had increased in the previous three months. Nearly four in 10 (39%) said their incomes had remained unchanged, while one in three (35%) reported decreased household incomes, largely because of job losses.

These positive signs came despite Botswana’s annual inflation rate soaring to 14.3%² in July 2022, the highest since November 2008, on the back of elevated global energy prices and the weakening of the Botswana Pula, which reached record low levels against the US dollar. With the cost of transportation (9.2%), food and non-alcoholic beverages (1.7%) and housing and utilities (1.2%) rising, this will have an impact on consumer spend in the coming months, said Weihan Sun, Director of Research and Consulting at TransUnion Africa.

“We’ve seen inflationary pressure curbing discretionary spending amongst Botswana’s households over the past three months, and we expect this trend will continue. However, the fact that households are still able to service their bills and loan obligations is a sign of resilience, especially during uncertain macroeconomic conditions at a global level,” said Sun.

Of all respondents, 38% said they cut back on discretionary spending (dining out, travel and entertainment) in the past three months, and 58% expect to further cut their discretionary spending in the next three months. Nearly four in 10 (38%) said they had cancelled subscriptions or membership services over the past few months.

Regarding bills and debt management, 32% of all survey respondents who said they wouldn’t be able to pay a current bill or loan in full said they intended to cover a partial amount affordable to them, but not the entire outstanding balance. Another 24% of those unable to pay will borrow money from a friend or family member, and 22% are likely to tap into their savings.

Nearly all (95%) consumers considered access to credit and lending products important to achieving their financial goals. However, only 33% of all consumers believed they had sufficient access to credit. One in three (34%) consumers plan to apply for new or refinance existing credit in the next year, with personal loans (40%), new mortgages, home loans or bond payments (22%), and private student loans (20%) top of the list. Of consumers who considered applying for new or refinancing existing credit, 45% ultimately decided not to. The primary reasons for not taking action were the cost of new credit being too high (28%), deciding they did not need new credit (28%), or believing their application would be rejected due to their income and employment status (26%).

Managing financial choices

Four in 10 (40%) consumers say they conduct more than a quarter of their transactions (finances, retail and business transactions) online. However, for Gen X consumers, that rises to 50%.

Most consumers (79%) believe monitoring their credit is very or extremely important, and 60% monitor their credit at least once a month. More than two in five (43%) consumers believe their credit scores will increase if businesses leverage alternative data sets not included on a standard credit report, like rental payments, gym membership payments, short-term loan history and buy now, pay later (BNPL) products.

¹ TransUnion’s Consumer Pulse survey of 447 adults was conducted 11 Aug.–26 Aug., 2022 by TransUnion in partnership with third-party research provider, Dynata. Adults 18 years of age and older residing in Botswana were surveyed using an online research panel method across a combination of desktop, mobile and tablet devices. Survey questions were administered in English. To increase representativeness across resident demographics, the survey included quotas to balance responses to the census statistics dimensions of age, gender, household income and region. Generations are defined as follows: Gen Z, born 1995–2004; Millennials, born 1980–1994; Gen X, born 1965–1979; and Baby Boomers, born 1944–1964. These research results are unweighted and statistically significant at a 95% confidence level within ±4.4 percentage points based on a calculated error margin.

²   According to Statistics Botswana, the annual inflation rate in Botswana was 14.3% in July 2022

According to the African Development Bank Group, real GDP growth is projected to recover to 5.5% in 2022, based on a revival in domestic demand as the effects of the pandemic recede and a rebound in commodity prices as economies reopen globally. However, this could be impacted by growing inflationary pressures caused by the war in the Ukraine. There are also threats from persistent drought and the adverse effects of poor economic conditions in South Africa on Botswana’s exports and SACU receipts.

SMEs remain the cornerstone of Botswana’s economy. They account for 50% of private sector employment, and 15- 20% of Botswana’s GDP. However, one of their main economic constraints is a shortage of entrepreneurs capable of running larger firms, and approximately 80% of small enterprises in Botswana cease trading within five years, according to Botswana Institute for Development Policy Analysis.

That’s why it’s vital that local SMEs are able to access data-based tools to enable a shift to ecommerce and global markets to accelerate revenues, reduce costs, and manage their risks, explains Rafi Kotler, Head of Commercial Bureau Solutions at TransUnion Africa.

“Big data and analytics used to be seen as something only large enterprises could afford, or use. That’s changing rapidly, with Botswana’s SMEs increasingly turning to data-driven business intelligence tools to grow their businesses, access new markets and develop their pipelines,” says Kotler.

“They’re looking to quality data and enhanced analytics to gain a complete view of customers, suppliers, partners and prospects, and make informed decisions. That’s where analytical techniques are critical for deciding which market to target, where to find customers within those markets and how to manage the risks of transacting with business customers at arm’s length.”

Local SMEs’ ability to access data on global markets was boosted last year by a partnership between TransUnion Africa and global commercial data company Dun & Bradstreet, which gives SMEs access to two key Dun & Bradstreet services, D&B Hoovers and DataVision. Hoovers is a web-based lead prospecting tool that allows companies to build local and global pipelines, and DataVision helps companies assess markets and develop entry strategies through powerful data analytics.

Effectively, this makes Botswana’s businesses visible on the global stage and gives them access to international trade opportunities. “For companies that want to jump-start their businesses, or accelerate their growth into global export markets or the e-commerce space, these platforms provide an intuitive experience to decide which markets they should enter and which customers they should reach out to in those markets,” said Kotler.

They also have the added benefit of helping businesses organise their own data, and combining it with 400 million international D&B sourced records. This allows companies to get on with running their businesses, and competing in global markets, rather than spending their time cleaning up spreadsheets.

The partnership with Dun & Bradstreet builds on TransUnion’s existing range of fraud and risk solutions, which help Botswana's businesses form trusted relationships and make more informed decisions. This includes products that address fraud, identity and risk management, automated decisioning, and marketing across a range of sectors, including banking, retail, insurance, automotive and telecommunications.

“This won’t just help Botswana’s businesses rebound from the effects of the Covid-19 pandemic, but will open up entirely new growth avenues. And ultimately, that will be good for the country, and the continent’s economy,” said Ramaselwana.

SMEs can sign up for a free webinar, How News Can Boost B2B Sales’ on July 21 from 10:00 to 11:00; and a free Masterclass, Expand your Exports’, on July 28 from 10:00 to 11:00. Both events are part of the TransUnion D&B Hoovers Webinar & Masterclass Series.

Molefe, the former executive director for South Africa & Rest of Africa for content and technology solutions provider LexisNexis, replaces Chad Reimers, who moves to a new position within TransUnion’s wider global business. Molefe will take responsibility for business development, stakeholder and regulatory engagement, and overall operations in seven countries in East and Southern Africa*.

Lee Naik, the chief executive officer of TransUnion Africa, said TransUnion’s wider Africa capability was ‘a critical part’ of the company’s portfolio growth strategy, and that he was looking forward to extending its offering under Molefe’s leadership.

“Thabo has extensive experience in growing markets across Africa and has a proven track record of high-level stakeholder engagement. We’re confident that he will be able to position TransUnion’s global information and insights capabilities to take our business to the next level in these key markets,” said Naik.

Molefe, who took up his new role on 24 August 2020, has deep knowledge of the African marketplace, having operated across the continent in a senior capacity for almost 20 years. He has previously fulfilled leadership roles at both LexisNexis and technology giant HP.

“TransUnion’s breadth and depth of data insights, and range of information solutions, are unmatched in this industry. I joined the company because I believe it has the potential to help even more African businesses make more informed decisions, and African consumers better manage their personal information and gain access to financial products and services,” said Molefe.

“I’m looking forward to deepening our relationships with clients, consumers and wider stakeholders, and helping the financial and digital lending communities establish trusted relationships and deliver great experiences and help create more economic opportunities.”

*_{Outside of South Africa, in East and Southern Africa TransUnion has operations in Kenya, Rwanda, Zambia, Namibia, Botswana, Eswatini, and Malawi.}

Cashless solutions like mobile lending and digital payments were already growing rapidly on the continent even before the pandemic struck. Now, we could see a scenario where the effects of COVID-19 on our society will create permanent changes in the way Africans use cards and cash, creating both opportunities and challenges for financial institutions, said Kabelo Ramaselwana, CEO at TransUnion.

“Even in 2020, millions of people across sub-Saharan Africa still pay their bills and send money each month by drawing cash and physically going to a retailer or a bank to make payment or to receive grant payments. Now, their safety concerns mean they don’t want to make physical payments anymore, which means banks and FinTechs will have to rapidly roll out safer, contact-free payment methods,” said Ramaselwana.

As markets prepare for life beyond the pandemic, digital transformation is becoming a key strategic initiative for financial institutions across both digital and traditional channels. Financial services providers will need to focus on offering payment and lending solutions, and onboarding customers, digitally in a seamless, easy and secure manner.

From March to July, most banks reduced banking costs on app-based and digital transactions. These changes, even temporary ones are increasingly being supported by economic policy changes from regulators and national banks to further digitisation agendas.

As growing numbers of consumers and businesses transact online, one of the biggest obstacles to the mass uptake of digital solutions will be security, says Ramaselwana. TransUnion’s quarterly analysis of global online fraud trends found that the telecommunications, e-commerce and financial services industries have been increasingly targeted by online fraud, with the number of suspected fraudulent digital transactions increasing by 5% comparing the periods Jan. 1-March 10 and March 11-April 28 (March 11, the mid-date, was the date the World Health Organization (WHO) declared the coronavirus (COVID-19) a global pandemic). TransUnion identified more than 100 million suspected fraudulent transactions globally from March 11-April 28 alone.

This will mean banks and businesses will need to deploy robust identity verification and fraud detection tools to manage their risks and avoid losses at a time when demand for credit is growing. At the same time, they must ensure a smooth customer experience that does not alienate the customer before they have even onboarded.

“Now that even more transactions have shifted online, fraudsters are trying to take advantage and companies must adapt. Lenders and businesses need to know exactly who they are dealing with, and how to protect their genuine customers from fraudulent activities. The businesses that come out on top will be those leveraging fraud prevention tools that provide great detection rates, and providing the ability to open accounts online in an easy, personalised way,” said Ramaselwana.

Rather than asking customers to manually enter their personal information, for example, ID documents can be validated online, and the information used to pre-fill an application. Once ID is established, the next step is effective ID Verification to detect and prevent fraud. Digital transactions carry an increased risk of fraud that businesses need to address through a multi-layered fraud strategy including assessing risk of digital signals like device, email, phone and behaviour.

After ID management and fraud risk and prevention steps are taken, the final steps in a seamless onboarding experience include assessing the consumer’s ability to pay, based on actual or income and credit history.

“COVID-19 has put immense pressure on African financial institutions to transform digitally, and to do this, they will need access to the most comprehensive set of offline and online data assets. Providing a truly seamless onboarding process requires up-to-date data sourced from credible data sources like credit agencies, government agencies, telcos and utility providers. This is where information providers like TransUnion are playing an increasing role in driving digital transformation, access to credit and financial inclusion,” said Ramaselwana.

Continuous sharing of data in the market as a strategy to mitigate against fraud and risk management, will be of great importance too going forward.

According to the Bank of Botswana’s latest statistics as of January 2020, Botswana households’ indebtedness levels rose from BWP35.2bn in January 2019 to BWP40.3bn in January 2020, a 9% YoY growth¹. Consumer debt balances have increased sharply in the past 12 months, as growing numbers of consumers turn to unsecured credit, including credit cards and personal loans and overdraft, to cover everyday expenses. With the report showing delinquencies on the rise, many people are struggling to make repayments on their debts.

If you’re going to struggle to pay your bills in the coming months, it’s critical to talk to your lenders upfront, says Kabelo Ramaselwana, chief executive officer at TransUnion.

Here are three ways to manage your credit through the COVID-19 pandemic, and beyond.

Protect your credit profile

As income streams shrink in the coming months, people may find themselves having to use their credit cards more, or even dip into their home loans for refinancing. The important thing is to pay all of your bills on time if you can. Paying on time is one of the biggest factors that affect your credit profile.

It’s even more vital than usual to protect your credit profile during tough times, because access to credit can often help you get through the rough patches.

¹_{Source: Bank of Botswana, (data as at January 2020)}

Talk to your lenders

If money is tight and you’re worried you’re going to miss a payment or two, it’s best to contact your lender before the payment is due. You can explain your situation and ask whether they can offer any assistance.

Consider contacting your bank or credit issuer if you’re affected by the COVID-19 pandemic. You may qualify for some leeway. Several Botswana banks have already announced payment holidays to help consumers and small businesses get through this time.

Stay in control of your credit health

It’s important to check your credit report to make sure all your account information is correct. You can get your credit report from several information providers like TransUnion. That way, if you contact your lenders to discuss your financial situation, they’ll have correct data to work with.

“We know many people are feeling anxious about their finances during this challenging time. Organising your credit information and maintaining communication with your lenders are two ways you can help stay in control of your credit health during times of uncertainty,” says Ramaselwana.