TransUnion research found that 1.2% of transaction attempts^[1] involving consumers in Namibia in 2025 were suspected of digital fraud, well below the global average of 3.8%. Despite the year-over-year (YoY) decline in suspected digital fraud from Namibia and globally, fraudsters continue to adapt, turning to high-trust, scam-based tactics that can bypass traditional safeguards.

While overall suspected digital fraud rates remain comparatively low, the consumer impact remains meaningful. Among Namibian consumers surveyed^[2] by TransUnion who reported losing money to digital fraud in the past year (defined in the survey as email, online, phone call and text message scams), the median reported loss was NAD 7,726.

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

“Global fraud trends show a clear pattern: as digital adoption accelerates, fraud evolves first through social engineering and trust exploitation before scaling into identity-driven account takeover and cross channel attacks,” said Amritha Reddy, senior director of fraud product management at TransUnion Africa. “Namibia sits squarely at this early transition point. While it remains one of the lower-risk markets among the African countries analysed, global experience shows this stage is temporary.”

“In this context, the strategic advantage Namibia has is time,” she added. “The signals seen in global markets today provide a clear roadmap for how fraud is likely to evolve next.”

Third-Party Seller Scams Drive Consumer-Reported Fraud Losses in Namibia

Namibian consumers are increasingly facing coordinated, identity-driven and cross-channel fraud, with attacks moving deeper into everyday digital interactions.

Among Namibians who reported losing money to digital fraud over the past year, more than one third (35%) said third-party seller scams on legitimate ecommerce sites were responsible for the loss. This indicates that losses are not occurring in obviously unsafe environments, but rather within credible, familiar and trusted digital spaces.

“Even in a lower-risk market like Namibia, fraudsters are prioritising mainstream platforms that consumers trust,” Reddy said. “This mirrors global fraud patterns, even if overall loss values remain lower.”

Chart 1: Most Prominent Cause of Consumer-Reported Fraud Loss in Namibia – 2025

Source: TransUnion consumer survey

Digital Fraud Risk is Highest at Account Creation in Namibia

Even when overall suspected fraud rates appear lower than 2024, risk can remain elevated at specific points in the digital consumer lifecycle, particularly where criminals attempt to create or manipulate identities. In 2025, the highest suspected digital fraud rate in Namibia in the consumer lifecycle occurred at account creation (2.8%), followed by account login (1.4%) and during financial transactions (0.2%).

“This profile aligns strongly with early-stage fraud markets globally,” Reddy said. “Markets that fail to strengthen fraud prevention at onboarding early tend to experience rapid escalation of login-based fraud later. Namibia therefore has a critical opportunity to reinforce identity verification and behavioural intelligence now, before fraud becomes systemic.”

Namibians Accept Some Friction if They’re Protected from Fraud

Findings from the TransUnion survey also show that the top features Namibian consumers value when choosing whom to transact with online are confidence that their personal data is secure (89% rated this as very important), easy payment processes (81%) and ease of login or authentication (76%).

“Consumers are willing to accept friction when it clearly enhances protection,” Reddy added. “Security in Namibia is increasingly becoming a driver of brand trust and differentiation, not just regulatory compliance.”

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

Across Africa, suspected digital fraud risk varies by industry, reflecting local user behaviours and where criminals see opportunity. For attempted transactions involving consumers in Namibia, gaming (online sports betting, poker, etc.) transactions recorded the highest suspected digital fraud attempt rate in 2025, at 4.5%.

As more services converge around mobile identity, real‑time connectivity and platform‑based interactions, fraud increasingly appears wherever users are most active; not only where money changes hands.

“High-engagement platforms such as gaming often act as early testing grounds for new fraud tactics,” Reddy said. “In Namibia’s digital economy, fraud doesn’t stay in silos. It moves wherever trust and engagement already exist.”

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

Source: TransUnion global intelligence network

What Consumers and Businesses Can Do

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

Namibia’s fraud landscape today reflects an early stage, trust-based digital economy, consistent with what was seen in global markets before fraud risk scaled materially. While current fraud rates remain relatively low in Namibia, the underlying signals of trust-based scams, onboarding pressure and growing digital reliance closely mirror the precursors to higher fraud rates observed globally.

“Waiting for fraud to scale is the most expensive strategy,” Reddy said. “Organisations that invest early in strong identity assurance, right-sized onboarding friction and cross-channel protection will be best positioned to enable secure digital growth and avoid the fraud challenges seen globally.”

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 Namibia, Botswana, Brazil, Canada, Chile, Colombia, Costa Rica, the Dominican Republic, El Salvador, Guatemala, Honduras, Hong Kong, India, Kenya, Mexico, 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.

^[2] TransUnion surveyed 308 consumers in Namibia from Nov. 23 to Dec. 8, 2025. 

According to the new TransUnion® (NYSE: TRU) H2 2025 Update to the Top Fraud Trends Report, Namibia recorded the highest rate of suspected digital fraud^[1] in the consumer life cycle at account creation. In the first half of 2025, 2.8% 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.

“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 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 Namibia, the rate of suspected digital fraud attempts in H1 2025 was the highest in gaming (online sports betting, poker, etc.) at 5.2%.

Chart 2: Suspected Digital Fraud Attempts in Namibia, 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, Namibia 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 65% of Namibians saying the same thing. Globally, 52% were unaware that they were targeted, as were 35% of Namibians, 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 Namibia, money or gift card scams was the most common fraud type – reported by 37% of those who said they were targeted with fraud from February to May 2025. Among those Namibians who said they were targeted, the next most frequently reported scams were vishing (33%), phishing (29%), and smishing (25%), with these three designed to deceive individuals into giving up their valuable personal or financial information.

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

   ^{Source: TransUnion consumer survey}

“Namibia’s digital transformation is unlocking new avenues for growth and inclusion. Yet, fraudsters are evolving faster, exploiting emerging vulnerabilities. Success will hinge on strengthening identity verification frameworks, accelerating cross-industry intelligence sharing, modernizing technology infrastructure, and empowering consumers through education and awareness,” said Reddy. “A safer digital Namibia 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 Namibia, Botswana, Brazil, Canada, Chile, Colombia, Costa Rica, the Dominican Republic, El Salvador, Guatemala, Honduras, Hong Kong, India, Kenya, Mexico, 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}

More than seven in ten Namibians (71%) said they were feeling optimistic about their household finances for the coming year, with 78% expecting their income to increase in the next 12 months. One in four (26%) reported an increase in income in the preceding three months, while 41% said that their finances were better than planned. Gen Z consumers (aged 18-28) were the most hopeful group, with 76% feeling optimistic about their finances, and 81% expecting their incomes to increase in the next year.

These were some of the findings of the TransUnion Consumer Pulse Study for Q2 2025* which also found that Namibian households had faced some financial setbacks, with 30% or respondents reporting that they had lost jobs – five percentage points more than the same quarter in 2024. Additionally, 17% said a household business had closed or lost orders and 16% experienced wage or salary reductions.

On the upside, 16% indicated someone in their household had started a new business, 15% reported salary increases and 11% started a new job. In terms of financial behaviour, 25% of consumers paid down debt faster and 23% saved more in an emergency fund.

When it comes to macroeconomic influences on their financial wellbeing, Namibian consumers listed inflation, job security and house prices as their leading concerns.

Overall, 75% of consumers listed inflation as one of their top three financial concerns followed by housing prices (rent or mortgage) at 64% and job losses at 55%. Possibly due to these concerns, 53% of consumers indicated they cut back on discretionary spending (dining out, travel, entertainment) in the past three months, 28% cancelled subscriptions or memberships, and 27% cancelled or reduced digital services (e.g., wireless, cable TV, internet).

In Q2 2025, 44% of respondents expect to be unable to pay their current bills and loans in full, a five-percentage-point reduction from the previous period. Among them, 35% planned to take on gig work, 33% said they would borrow from friends or family and 32% would make partial payments. These responses reflect not only ongoing financial pressure but also a strong sense of adaptability and resourcefulness among consumers.

“Namibian consumers are demonstrating remarkable resilience and optimism in the face of economic challenges, while prioritising essential expenses and actively trimming non-essential costs to maintain financial stability,” said Lara Enslin, CEO of TransUnion Namibia. “As access to credit and digital trust become increasingly vital, it’s clear that empowering consumers with the right tools and protections will be key to sustaining this resilience.”

Namibians Believe Credit Can Help Achieve Their Financial Goals

In Q2 2025, 95% of respondents considered access to credit important, yet only 33% felt they had sufficient access. Looking ahead, 45% planned to apply for new or refinance existing credit within the next year. Among these, 33% planned to apply for a new student loan, 31% intended to apply for a new personal loan, and 23% planned to refinance a personal loan — marking an eight-percentage-point increase from Q2 2024.

Nearly half (46%) of respondents considered applying for credit or refinancing but ultimately chose not to proceed. The main reasons were concerns about being rejected due to income or employment status (30%) or credit histories (28%), while 29% abandoned their applications simply because they no longer needed the credit. Rising interest rates also shaped consumer credit behaviour. A significant 48% of respondents said interest rate hikes had a major influence on their decisions to apply for credit — while another 31% reported moderate impact. These trends underscore a growing sensitivity to economic conditions.

“Consumers’ sentiment about access to credit highlights a gap between the importance of credit access and consumer confidence, pointing to a need for more inclusive lending,” said Enslin.

Namibians Concerned About Fraud

Namibia was affected by various fraud attempts. The survey revealed 47% of users cited identity theft as a major barrier to adopting new digital technologies — while 45% expressed concerns about cybersecurity threats.

Credit card/payment fraud (59%), stolen identity (54%) and data breaches (31%) were the cyber threats that most concerned surveyed consumers. In turn, identity attack methods that concerned consumers the most included falling victim to fake social media profiles (61%), personal information exposed in data breaches (59%), email phishing (45%) and viruses or malware (41%). 

In Q2 2025, 57% of consumers reported being targeted by fraud attempts through online platforms, emails, phone calls or text messages but did not fall victim; 8% of respondents said they were both targeted and scammed. Middle-income consumers were particularly affected as 66% reported fraud attempts. Overall, the most common types of scams included money/gift card scams (37%), vishing (fraudulent phone calls meant to trick users into revealing data) at 33%, phishing (fraudulent emails, websites, social posts, QR codes, etc. meant to steal data) at 29%, and smishing (fraudulent text messages meant to trick users into revealing data) at 25%.

“Namibian consumers continue to display resilience following the country’s economic contraction in Q1 2025,” said Enslin. “Managing their credit effectively and taking steps to prevent fraud will see Namibians benefit from the country’s anticipated growth.”

Consumers can find out more about their credit report from TransUnion here.

^{*This online survey of 291 adults was conducted in Namibia from May 5–25, 2025 by TransUnion in partnership with third-party research provider, Dynata. Adults 18 years and older residing in Namibia were surveyed using an online research panel method across a combination of desktop, mobile and tablet devices.}

Sixty-three percent of Namibians TransUnion surveyed from 21 November to 11 December 2024 indicated that they had been targeted by email, online, phone call or text messaging fraud in the last three months, with 11% saying that they had become victims. Among those who said they were targeted, the most common reported schemes were vishing, where fraudulent phone callers try to induce the user into sharing data (30%), phishing, where fraudulent emails, websites, social posts or QR codes are meant to steal personal data (24%), and third-party seller scams on legitimate online retail sites (22%).

In a separate question from that same survey, nearly one third (31%) said that they had lost money to email, online, phone call or text messaging fraud in the last year. One third (33%) of those who said they lost money reported it happening from stolen credit cards or fraudulent charges. This was followed by 27% who lost money via third-party seller scams on legitimate online retail sites, and 21% who lost money via phishing.

These and other findings came from research used for building the newly released TransUnion (NYSE: TRU) H1 2025 Update to the State of Omnichannel Fraud Report, which shows how Namibian consumers continue to be targeted by fraudsters through a wide range of channels.

“Namibia has a 110% mobile phone penetration rate, with people using mobile phones to conduct their everyday business, connect with friends, or keep in touch with family, so it’s easy to understand why digital fraud would be such a common tactic among fraudsters targeting this region,” said Amritha Reddy, senior director of fraud solutions at TransUnion Africa. "While cybercriminals will attack at any time using any channel, they appear to focus on channels most popular in the regions they are targeting.”

Thirty-seven percent of Namibian respondents indicated that they were not aware of being targeted by email, online, phone call or text messaging fraud at all, which raises questions as to whether these respondents were in fact targeted, yet simply unaware of the threat.

Based on the TransUnion study, Namibia tied Kenya with having the second highest percentage of respondents who said they fell victim to email, online, phone call or text messaging fraud in the second half of 2024 among countries surveyed in Africa. In contrast, Zambia had the lowest percentage of consumers who said they fell victim to fraud in the countries surveyed across the continent.

Table 1: Fraud Types Most Frequently Used to Target Consumers in Sub-Saharan Africa in the Last Three Months

   Source: TransUnion Consumer Pulse Survey of 308 people in Namibia in December 2024

Communities and Video Gaming Among Top Industries Targeted by Suspected Digital Fraud

Globally, TransUnion determined that communities (online forums and dating sites) experienced the highest rate of suspected digital fraud^[1] attempts in 2024. Nearly 12% of all attempted transactions within communities were suspected to be digital fraud last year. This is closely followed by video gaming (11%), with gaming (including online betting, poker, etc.) at 8% and retail (8%) rounding out the top four.

The logistics industry, which has seen growth in shipping fraud (often perpetrated by organized crime rings), saw the greatest suspected digital fraud volume growth globally in 2024, up more than 100% over 2023. The fraud rate remains at a relatively modest 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 Reddy. “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.”

For attempted transactions where the consumer or fraudster was located in Namibia, retail experienced the highest suspected attempted digital fraud rate in 2024 at 8.4% with a 68.5% increase in the volume of suspected digital fraud from 2023. There was a significant 111.8% increase in the volume of suspected digital fraud attempts in the travel and leisure industry YoY, albeit off a low base.

“It is encouraging to see that attempts at digital fraud have decreased across several of the surveyed industries in Namibia,” 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.”

Table 2: Highest Digital Fraud Rates Across Leading Industries in Namibia

Source: TransUnion TruValidate™

*The volume of transactions in logistics, insurance and government was too low for inclusion in this study

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 N$32,428. For those who said they lost money due to fraud in Namibia, the median stated amount lost was N$11,174^[2].

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

Specific country and regional data in the report includes Namibia, Botswana, Brazil, Canada, Chile, Colombia, the Dominican Republic, Guatemala, Hong Kong, India, Kenya, Mexico, 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 6 Jan. 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, 1.6% of all attempted digital transactions where the consumer was located in Namibia were identified as suspected Digital Fraud in a recent TransUnion® (NYSE:TRU) analysis. Namibia had the lowest rate of suspected Digital Fraud in the first half of 2024 out of the 19 countries and regions for which TransUnion provided breakdowns.

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

This is at a time when 63% of Namibian consumers said in Q2 2024 that they were targeted by online, email, phone call or text messaging fraud attempts in the last three months, a decline from 70% in Q3 2023^[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 Namibia 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 attempted transactions where the consumer was in Namibia, 4.2% of attempted digital account openings were suspected of Digital Fraud, with 1.6% of attempted digital account logins being suspected of Digital Fraud.

“Digital Fraud waxes and wanes, but the trends in cybercrime and consumer scams are clear,” said Lara Enslin, CEO TransUnion Namibia. “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 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, 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 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 — compared to all transactions it assessed for fraud. 

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 Namibia, 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] Namibia Consumers Show a Growing Awareness of the Importance of Financial Preparedness

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

Information and insights company TransUnion has published its latest Consumer Pulse Study which shows that Namibian consumers are grappling with continued financial challenges, driven by the impact of job losses, salary reductions and high inflation.

According to the study, 38% of consumers experienced stagnant incomes and 34% experienced decreased incomes in Q2 2024. However, these figures are both down from Q3 2023, by two percentage points and six percentage points, respectively. This improvement shows that there is light at the end of the tunnel, with 28% of households also reporting an increase in their income, up from 20% in Q3 2023.

“Namibian consumers are showing remarkable resilience in the face of financial challenges. While many are experiencing financial strain, their optimism about future income prospects and the proactive steps they are taking to manage their finances is commendable,” says Lara Enslin, CEO at TransUnion Namibia.

Consumer response to economic strain

Inflation, averaging 5.9% in 2023 driven by a surge in food prices, has exerted pressure on disposable income and spending. Although overall consumer inflation decreased to 4.9% in the first five months of 2024, it remained a significant concern for respondents - exacerbated by the sharp escalation of transport inflation driven by rising fuel prices.

Many consumers have revised their household budgets in response to these financial pressures. Over the past three months, 52% of households opted to reduce discretionary spending, primarily Millennials (27–42 years old) at 56% and Gen X (43–58 years old) at 57%. Furthermore, 27% cancelled or reduced digital services, and another 27% cancelled subscriptions and memberships.

Burger notes that this prioritisation of essential expenses over discretionary ones indicates a proactive approach to managing financial challenges.

Optimism and financial planning

A significant 81% of Namibian consumers feel optimistic about their future income prospects, an increase of eight percentage points from Q3 2023. This optimism is particularly strong among younger generations, with 85% of Gen Z (born 1995 to 2010) and 82% of Millennials expressing confidence in income growth.

Despite a prevailing sense of optimism about future income prospects, 49% of consumers anticipate difficulties in meeting their existing bill and loan obligations – a staggering increase from 45% in Q3 2023.   To cope, 36% of respondents plan to make partial payments, 35% will seek temporary work, and 25% intend to borrow from friends or family.

On a positive note, looking ahead, 44% intended to increase their retirement investments in the coming quarter. At the same time, 39% plan to spend more on medical services, and 36% on digital services. Additionally, 46% of consumers expect to pay more towards bills and loans in the coming year.

Financial inclusion and access to credit

Nearly all consumers (94%) consider access to credit essential. However, only 32% feel they have sufficient access, a slight decline from 34% in Q3 2023. In Q2 2024, credit demand surged, with 41% of respondents planning to seek new credit within the next year. Millennials and Gen X showed the most interest, at 42% and 43% respectively. Among those planning to seek credit, 35% considered student loans with 31% (eight percentage points more than in Q3 2023) looking at personal loans.

While most consumers (60%) followed through on planned credit applications, fear of rejection based on income or job status (34%) and the high cost of credit (28%) were notable reasons why they abandoned plans to apply for credit. This could be as a result of the bank lending rate being at a high of 11.5%, which led to increased debt repayment burdens.

Digital fraud and identity protection

Namibia’s low internet penetration continued in Q2 2024, with 75% of consumers conducting less than half their transactions online. Efforts to combat digital fraud showed some success, with the percentage of respondents unsuccessfully targeted by fraudsters declining to 52% from 59% last year. However, another 11% were targeted and fell victim to digital fraud, highlighting the need for enhanced vigilance and education on recognising and reporting fraudulent activities. This is further highlighted by the high percentage (37%) of respondents who remained unaware of any fraud attempts.

Money and gift card scams were the most prevalent fraudulent scheme experienced by those targeted, affecting 37% of respondents, followed by vishing (31%) and phishing (29%). Consumers’ concern about sharing personal information increased to 91%, with identity theft (76%) and invasion of privacy (75%) being primary concerns.

“These numbers show that strengthening cybersecurity measures and promoting digital literacy among all age groups are crucial to effectively mitigate digital fraud risks. 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 Enslin.

Consumers can find out more about their credit report from TransUnion here.

TransUnion also found across industries in 2023, 1.2% of all transactions where the consumer was in Namibia were flagged as being suspected Digital Fraud – a 1% YoY decrease.

The TransUnion report revealed that nearly one in seven (13.5%) newly created accounts are suspected to be created via Digital Fraud globally, 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 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 Lara Burger, country manager at TransUnion Namibia. “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 Namibia, the highest percentage of suspected Digital Fraud in the online customer journey occurred at account login, at 1.6%, varying widely by industry.

Retail Saw the Highest Suspected Digital Fraud Rate in 2023 Globally and in Namibia*

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 overall, 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 Burger. “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 Namibia, Botswana, Brazil, Canada, Chile, Colombia, the Dominican Republic, Hong Kong, India, Kenya, Mexico, the Philippines, Puerto Rico, Rwanda, South Africa, Spain, the United Kingdom, the United States and Zambia

For more information and insights about the global fraud trends download the TransUnion 2024 State of Omnichannel Fraud Report.

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

Globally, the analysis found 3.6% of all e-commerce transactions over the Black Friday period (23 – 27 November 2023) were suspected to be fraudulent. TransUnion also determined that the average number of suspected digital fraud attempts on any given day during that period globally was 15% higher than the same period in 2022, yet 50% lower than during the rest of 2023. ^[1]

The Percentage of Suspected E-Commerce Fraud at the Beginning of the Festive Shopping Season, Compared to the Rest of the Year

* ^{Includes 11 November for Hong Kong}

“Just as the holiday season drives consumers online to begin shopping for gifts for their loved ones, so does it become a destination for fraudsters seeking to take advantage of this time for their financial gain,” said Steve Yin, global head of fraud at TransUnion. “Online retailers must ensure that consumers shopping their sites for the best deals are at the same time protected from fraud in the most seamless and friction-right way possible.”

The study also revealed the suspected digital fraud rate for each day in the holiday shopping period for transactions where the consumer was in Namibia during the transaction, and globally. Unlike last year when Black Friday (25 November 2022) saw the highest suspected digital fraud rate of 4.7%, this rate was the highest on Thursday 23 November, at 5.6%.

The Suspected Digital Fraud Rate Varies for Each Day of the 2023 Holiday Shopping Weekend

As part of this analysis, TransUnion also determined the top indicators of fraudulent e-commerce transactions during the holiday shopping season globally. This year, transactions per IP (triggered with an unusual volume of activity from a single Internet Protocol (IP) address to a customer’s site in a short time) and transactions per device (triggered with an unusual volume of activity from a single device to a customer’s site in a short time) were the leading indicators for potential fraud attempts.

“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,” said Lara Burger, country manager at TransUnion Namibia “A critical way to minimise fraudulent transactions while at the same time protecting legitimate ones involves implementing holistic fraud solutions that can verify customer identity and authenticity at the very beginning of a transaction, including both account creation and login.”

TransUnion came to its conclusions primarily 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.

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

Consumers interested in obtaining their TransUnion credit report, credit score, and accessing additional credit planning tools can click here.

^[1] For Hong Kong, all holiday analysis also includes Nov. 11

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

^{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}

According to TransUnion’s Q3 Consumer Pulse Study, one of the significant factors contributing to the decrease in household income was job loss, with 27% of consumers reporting that someone in their household lost their job over the past month. Other factors impacting decreased income included wage or salary reductions (16%) and owning a small business that closed, or saw orders dry up.

“Many consumers have been forced to adjust their household budgets in response to these challenges, with 56% cutting back on discretionary spending – such as dining out, travel and entertainment – over the past three months,” said Lara Burger, country manager at TransUnion Namibia.

According to Namibia’s Central Bureau of Statistics, the country’s inflation rate rose to 4.7% in August, going up from a near one and a half year low of 4.5% in July 2023. This is expected to increase some consumer costs, particularly around food prices. GDP grew 5.8% in the first quarter of 2023 over the previous quarter, recovering sharply from a 1.8% fall in the previous period, and pointing to its strongest growth since the first quarter of 2013.

Looking ahead, consumers are bracing for further financial strain. A significant 38% of consumers in TransUnion’s survey expected to increase spending on bills and loans over the next three months, while 33% expected to decrease their in-store and online retail shopping (e.g., clothing, electronics and durable goods). In addition, 48% planned to make cuts to their discretionary spending in the next three months, and 28% expected a decrease in large purchases such as appliances and cars.

The survey also highlighted a low percentage who think they have access to credit and potentially a lack of consumer confidence in the credit market. Nearly all consumers (93%) believed access to credit and lending products is important to achieve their financial goals. However, just over a third (34%) felt they had sufficient access to credit, and 35% intended to apply for new credit or refinance within the next year.

Identity risks and usage

Fraud is on the rise. Seven in 10 respondents (70%) reported being targeted by online, email, phone call or text messaging fraud attempts in the past three months. 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%).

Concerns about sharing personal information are high, with 89% of consumers expressing worry. The primary concern cited was the fear of identity theft (80%), followed by invasion of privacy (76%). These findings underscore the need for stringent security measures and consumer education about data protection to maintain trust.

“Overall, it's clear that consumers are increasingly aware of the risks associated with 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,” said Burger.

‘Smishing’ – where fraudulent text messages attempt to trick people into revealing data – was experienced by 28% of Namibians who were targeted, while 24% were targeted by ‘vishing’, where fraudulent callers tried to get them to reveal personal information.

At the same time, the top types of digital fraud which Namibian consumers were most worried about differed from the attempts reported, as the biggest Namibian consumer concerns were account takeovers (69%), identity theft (65%) and stolen credit cards or fraudulent card transactions (64%).

Data in the 2023 State of Omnichannel Fraud Report blends proprietary insights from TransUnion’s global intelligence network and a specially commissioned TransUnion consumer survey in 18 countries and regions globally.

The study showed that globally, 4.6% of all digital transactions were suspected to be fraudulent. This percentage is in line with the rates found in 2019. However, despite the similarities to the percentage prior to the pandemic, due to the marked rise in number of digital transactions in the last few years, the total volume of all suspected digital fraud attempts has increased dramatically. Globally, such attempts have increased by 80% from 2019 to 2022.

Lara Burger, country manager of TransUnion Namibia, said: “We’re seeing a persistently high number of digital fraud attempts, with the total volume of suspected digital fraud attempts originating from Namibia increasing most notably in the gaming sector, where the rate of attempts has increased by 179% since 2019. This reflects the overall accelerated adoption of digital technologies and rising online transactions as a result.

“Namibian businesses need to take proactive steps to protect themselves and their customers. This means ensuring that identity proofing and authentication is up-to-date and as robust as possible,” she said. 

Of Namibian consumers surveyed, 66% said they had been targeted by an email, online, phone call or text message fraud scheme and 13% of those fell victim. Nearly half (47%) said that they had placed a freeze on their credit when they realised that they were a victim of fraud, while 30% contacted the affected company, whether it was a bank or retailer.

Burger continued: “Rates of digital fraud attempts by sector tend to change rapidly, as fraudsters innovatively shift focus to where there are new opportunities to make financial gain. They will be agile in targeting consumers and organisations as Namibia navigates the current period of global economic uncertainty.

“At TransUnion, we help businesses across a wide range of industries prevent fraud by using intelligent predictive solutions to deliver better experiences – helping to outflank those who would take advantage otherwise and reassure customers that their personal data will not be compromised.”

TransUnion monitors digital fraud attempts reported by businesses in varied industries such as gambling, gaming, financial services, healthcare, insurance, retail, and travel and leisure, among others. The conclusions are based on intelligence from billions of transactions and more than 40,000 websites and apps contained in TransUnion’s flagship identity proofing, risk-based authentication and fraud analytics solution suite –TruValidate.

For more information and insights about our global fraud trends, please download the report here.

These findings are based on intelligence from billions of transactions contained in TransUnion’s TruValidate™ fraud analytics solution suite. The analysis also determined that the average number of suspected digital fraud attempts on any given day during that holiday period globally was 82% higher than during the rest of the year (Jan. 1, 2022 to Nov. 23, 2022). For transactions originating in Namibia, the percentage was 23% lower than during the rest of the year but was 54% higher than the same period in 2021.

“Fraudulent activity tends to be particularly prevalent in online retail during the holiday shopping season,” said Shai Cohen, senior vice president and head of global fraud solutions at TransUnion. “Despite the fact that consumers have begun returning in larger numbers to in-person shopping in the post-pandemic era, online retail continues to be the preferred means of holiday shopping for many. It’s important that online retailers ensure consumer security and privacy protections, which is important to consumers, but in a way which ensures a seamless shopping experience that minimises unnecessary friction.”

Top e-commerce fraud types revealed

TransUnion also revealed in the analysis the top types of fraudulent e-commerce transactions globally. This year, promotion abuse (user abuses site promotions such as refer-a-friend, free giveaways, etc.) and account takeover (someone other than the owner of an account uses it without permission, indicating that the account has been maliciously compromised) were the top types of digital fraud in retail.

“Online retailers must equip themselves with the proper tools to detect fraud at the first warning sign, and without inhibiting the consumer journey,” said Lara Burger, general manager TransUnion Namibia. “It’s more important than ever that these online retailers implement holistic fraud solutions that are able to verify customer identity and authenticity at the very beginning of a transaction without resulting in false positives that may cost them legitimate transactions.”

TransUnion monitors digital fraud attempts reported by businesses in varied industries such as gambling, gaming, financial services, healthcare, insurance, retail, and travel and leisure, among others. The conclusions are based on intelligence from billions of transactions and more than 40,000 websites and apps contained in TransUnion’s flagship identity insights, digital insights, omnichannel authentication, and fraud analytics solution suite – TruValidate™.

To find out how this data varies by select countries, download TransUnion's holiday fraud trends infographic 
 

 ^[1] The percent of suspected digital fraud attempts are those that TruValidate customers either denied or reviewed due to fraudulent indicators compared to all transactions it assessed for fraud.

“The problem is, while most Namibian consumers know what a credit report is, far fewer understand how it influences their credit score and how it can help them access credit and achieve their financial goals,” says Lara Burger, the Namibia country manager at information and insight provider TransUnion. “That’s why a vital part of the journey to financial health is maintaining and improving your credit health to ensure a good credit score.”

When you apply for credit, banks and lenders will access your credit report to see if you’re suitable for credit. Landlords will check it before they rent a property to you. If you have a good credit score, you might receive a better interest rate. But a credit report with negative listings, such as defaults and judgments, or too many enquiries for loans or credit over a short period of time, could result in a low credit score. This could mean you may pay a higher interest rate, or even be unable to access the credit you want.

So how do you maintain your credit score and your financial stability?

Pay your bills and credit cards on time

One of the biggest influences on your credit score is your account payment history: how you manage accounts, and whether you pay your accounts on time. If money is tight, you may not be able to pay your full balance each month, but try to pay at least the minimum balance each month. You will pay more in interest, but you’ll help your credit score and your ability to access credit.

Stick to a budget

Creating, and sticking to a budget is the foundation of healthy personal finances. If you need to save money and finances are tight make simple changes like cooking more at home, instead of been tempted to go out. Cut down on unnecessary travel and use the money you’re saving on fuel or public transport to pay off some accounts. By budgeting and paying back your bills on time, you’ll be on your way to getting back into financial shape.

Limit your amount of debt

One of the best ways to improve your credit score is to avoid over indebtedness and maxing out your credit facilities. Check the credit limits on your loans, accounts, credit cards and overdrafts, and then see how much you owe on each of them. Make a plan to maintain a healthy amount of headroom in your lending facility and pay off as much of your outstanding balances as possible if you have the means: it will reflect on your score and ease the pressure on your finances,” says Burger

Try to keep your utilisation of your current credit facilities to less than 35% of your limit. For example, if you have a credit card or a store account with a limit of N$1200, try to maintain the amount owing balance at under N$400.

Check your credit report

You’re entitled to one free credit report every 12 months. Use it. Get a copy of your credit report from TransUnion and check it carefully for inaccuracies, like accounts that you don’t recognise or incorrect information about late payments. Disputing this kind of inaccurate information, and getting it removed from your credit report, can improve your credit health. It can also help detect fraud if someone else has applied for credit in your name.

You can get your free credit report by sending an email with your ID copy, name and surname and contact number to SA_Namibia-FreeReport@transunion.com.

 TransUnion’s data on fraud against businesses is based on intelligence from billions of transactions and more than 40,000 websites and apps contained in its flagship identity proofing, risk-based authentication and fraud analytics solution suite – TransUnion TruValidate™.

 The global insurance industry saw a YoY suspected digital fraud attempt rate increase of 159% in Q2 2022, while the global logistics sector increased by 13%. For transactions originating from Namibia, the industry that saw the biggest increase in the rate of suspected digital fraud attempts was financial services, which saw a massive increase of 229% YoY. The other industry to see a big increase in the rate of suspected digital fraud coming from Namibia was gambling, which increased by 179% YoY.

 “We have observed interesting trends in the first half of 2022 with suspected fraudulent activity in the insurance industry continuing to be elevated,” said Shai Cohen, senior vice president of global fraud solutions at TransUnion. “In recent years, we’ve seen fraudsters shift their industry focus each quarter. At this time, we believe the insurance industry is seeing more ‘soft fraud’ because some consumers may be representing their policies incorrectly in an effort to save money, especially in a high inflation environment that places more pressure on their wallets.”

Year-on-Year Growth Rates of Digital Fraud Attempts (from Q2 2021 to Q2 2022)

 Globally, industries seeing the largest declines in the rate of suspected digital fraudulent activity from Q2 2021 to Q2 2022 included gaming (-63%), travel and leisure (-28%), and retail (-28%). TransUnion observed the largest declines from Namibia-based transactions in travel and leisure (-39%), retail (-9%) and communities, which includes online forums and dating sites, at -9%.

 “The focus across industry has been on identifying more of the good transactions and customers to allow them to pass with less friction,” said Amritha Reddy, Head of Fraud at TransUnion Africa. “Strong fraud and authentication practices decrease false positives and focus fraud-fighting resources on the minority of interactions that warrant scrutiny. By reducing the pool of manual reviews and customer interrogations, organizations can dramatically reduce costs, increase revenue, and improve the overall customer experience.”

For worldwide and regional breakdowns around how much the suspected digital fraud attempt rate recently changed, what types of fraud are most prevalent in certain industries and more, please download the infographic.

The rate of digital fraud originating from Namibia decreased in Q1 2022, with suspected online fraud attempts declining -7.0% from the same quarter last year, in line with the global decrease of -22.6% during that same time period. TransUnion’s (NYSE:TRU) quarterly digital fraud analysis observed that while the overall rate of suspected digital fraud declined in Namibia, there were significant shifts year-over-year (YoY) within certain industries.

Sectors such as telecommunications, travel and leisure, and retail saw YoY decreases in the suspected attempted digital fraud rate from Namibia. Conversely, fraudsters in Namibia increased their suspected scams in sectors such as gambling and financial services.

“What we observed in Namibia and globally is that sophisticated fraudsters are shifting their focus to target new industries as sectors previously targeted have ramped up fraud prevention measures. In other words, fraudsters are constantly seeking out new opportunities based on vulnerabilities,” said Amritha Reddy, Head of Fraud at TransUnion South Africa.

“What’s critical is that companies don’t become complacent with fraud prevention measures as fraudsters become ever more sophisticated. At the same time, companies should leverage this temporary shift in fraudulent activity to focus on optimising customer experience without compromising security.”

Rate of Digital Fraud Attempts Decrease in Namibia, but Some Industries See Growth

The telecommunications industry saw the largest YoY decrease in the suspected fraud attempt rate for digital transactions coming from Namibia, at -39.1%. When digital fraud in telecommunications did occur, TransUnion found the most dominant type in that industry globally was  identity theft. This occurs where a customer uses a stolen identity to commit fraud, and the victim who is the identity owner is a real person.

Fraudsters have cycled through certain industries during the pandemic and are now rotating to other vulnerable sectors. This makes these vulnerable sectors more prone to digital fraud attempts.  The gambling industry exhibited the greatest YoY growth in the rate of suspected digital fraud coming from Namibia in Q1 2022 at 109.1%, with the most prevalent type of fraud in that sector globally being promotion abuse – where a user abuses site promotions such as refer-a-friend, reload deposit bonuses and free giveaways.

The financial services industry experienced the second highest YoY increase in Namibia at 27.5%, where first party application fraud was the most common type of fraud. This occurs  when an individual intentionally completes fraudulent applications that contain inaccurate or manipulated information with the intention of receiving a lower rate or better terms for a policy or contract.

Year-over-year Growth Rates of Suspected Digital Fraud Attempts (Q1 2021 to Q1 2022)

“As digital fraud rates stabilise in Namibia during a period when fraudsters are searching for new vulnerabilities, it’s important that organizations shift their focus to identifying more of the ‘good’ customers and transactions to drive revenue and customer lifetime value. By reducing false positives, false declines and manual review rates, organizations can improve their customer experience through trusted connections while still keeping the fraudsters at bay,” said Reddy.

TransUnion derived its conclusions on fraud against businesses  on intelligence from billions of transactions and more than 40,000 websites and apps contained in its flagship identity proofing, risk-based authentication and fraud analytics solution suite – TransUnion TruValidate™. The percent or rate of suspected digital fraud attempts are those that TruValidate customers either denied or reviewed due to fraudulent indicators compared to all transactions that were assessed for fraud.

For worldwide and regional breakdowns around how much the suspected digital fraud attempt rate recently changed, what types of fraud are most prevalent in certain industries and more, download this infographic.

According to the African Development Bank Group, the economy is projected to grow by 3.3% in 2022, on the back of a steady recovery in financial services, tourism, retail and wholesale trade, and the mining industries—combined with an improvement in the regional and global economic environment. But the economy still faces substantial risks and challenges in the short to medium term. For instance, if the pandemic continues, the revival of critical sectors such as tourism, agriculture, and retail and wholesale trade would be slower than anticipated.

According to the Labour Resource and Research Institute of Namibia (LaRRI), the SME sector has become a booming area of the Namibian economy. They provide an estimated 60 000 full-time jobs, which makes it a very significant sector in terms of employment creation. Its potential for employment creation seems even larger than that of Namibia's large business sector due to its labour-intensive nature and its use of local resources. However, according to IGI Global, the general reduction in the supply of labour, disruptions of supply chains, sudden loss of demand, and revenue by COVID-19 pandemic have negatively affected SMEs leading to their inability to operate normally causing liquidity constraint.

Data-based tools are proving to be a key driver of the growing trend of SMEs expanding beyond Namibia’s borders into the region and globally, says 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 Namibia’s SMEs increasingly turning to data-driven business intelligence tools to grow their businesses, access new markets and develop their pipelines,” said 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 Hovers & 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 Namibian 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.

This helps businesses organise their own data, and combines 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 Namibian 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 Namibian 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 Burger.

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.

What a difference a year makes. Last year at this time, we were looking forward to a 2020 filled with new opportunities and hope. Then Covid-19 came knocking. 12 months later, 2021 is looking very different, with many of us dealing with a range of financial, work and health stresses that we never could have imagined.

We know how to protect our health against the virus. Now we need to do the same with our finances – and one of the best ways of doing that is making sure we have a good credit rating, and managing our finances better.

So how do you provide yourself and your family with a stress-free year of finances? Here are a few tips to improve your credit score:

Know how much you owe

Check your credit limits on your loans, accounts, credit cards and overdrafts, and then see how much you owe on each of them. One of the best ways to improve your credit score is to decrease the amount of credit that you’re using. Make a plan to pay off as much of your outstanding balances as possible: it will reflect on your score, and ease the pressure on your finances.

Pay your bills on time

Another big no-no when it comes to a good credit score is late payments. The way to build a good credit history and credit score is to make regular and timely payments. If you have loans, accounts and credit cards, but your payment history is dragging down your score, dedicate the next year to meticulously making every payment on time. If you can pay more than the minimum payment in the process, that’s even better.

Check your credit report

You’re entitled to one free credit report every year. Use it. Contact TransUnion on +264 81 341 8727, or emailSA_Namibia-FreeReport@transunion.com or Namibia-freereport@transunion.co.za to get your free credit report, and go over it with a fine-toothed comb to check for inaccuracies, like accounts that you don’t recognise or incorrect information about late payments. Disputing this kind of inaccurate information, and getting it removed from your credit report, should improve your credit score.

Stick to a budget

Now that we’re limiting our exposure to public places and gatherings, it’s a good time to work on our budgets. Cook more at home, instead of going out. Use the money you’re saving on petrol to pay off some accounts. By budgeting and paying back your bills on time, you’ll be on your way to getting into great financial shape for the remainder of the year.

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.}

Lara Burger, Country Manager of TransUnion Namibia, said cybercriminals were using the pandemic as a screen for their activities, sending emails and text messages from seemingly legitimate organisations with information about COVID-19 or financial improvement schemes. In the past few months, fraudsters have been active on social media and public platforms to try and hook unsuspecting individuals.

Once people click on the links in emails or text messages, they unknowingly download software which allows criminals to take control of their devices and access their personal information and financial data, which could lead to identity theft. On websites, they are scammed into buying fake or non-existent products, or investing into fake property purchases or employment offers. There has also been a sharp rise in the fraudulent offers to ‘fix’ negative credit reports, said Burger.

“Identity theft is a huge problem in Namibia. The problem with this type of crime is that victims only find out about the theft months later, by which time fraudsters would have obtained false lines of credit and racked up significant debt in their name,” said Burger.

Follow these tips to protect yourself against fraud and identity theft.

Never click on a link, or provide your sensitive information

Phishing is a major part of identity theft and fraud, warned Burger. “You’ll get an official-looking email from a bank or other organisation, offering you information or asking you to verify some aspect of your account. Don’t do it. No reputable company will ever ask to verify details by clicking on a link in an email,” she said.

Stick to legitimate sites for online shopping

The restrictions in movement have resulted in a surge in online shopping, as people look to buy everything from groceries to books to airtime. “Check that there’s an ‘https’ in the web address and an icon of a locked padlock on the left side of the URL. The ‘s’ stands for secure and means the site can be trusted. Don’t just click on links in mails offering you ‘too-good-to-be-true’ deals: check it out first,” said Burger.

Secure your online identity now

Make sure you have strong passwords for important accounts such as your banking, online shopping and email. Change them regularly and don’t use the same password for all your online profiles. Where possible, use two-factor authentication to make it harder for scammers to gain access to your accounts.

Keep checking your transaction alerts

The best way to check if your identity and credit is safe is to check your credit report, bank and card statements. Fraudsters are especially active at a time of crisis, when people are distracted. Keep track of what is on your credit report for signs of suspicious activity, such as accounts that you don’t recognise or credit checks from companies with which you’ve never done business.

Nobody can ‘fix’ your credit record

Online advertisements promising to rehabilitate indebted consumers’ credit records for a fee are scams. No unauthorised company or lawyer can simply remove negative data from the credit bureau, regardless of how much you pay them. Consumers should contact TransUnion directly if they wish to dispute any information on their credit report.

It is also important to check that the service provider is a legitimate, registered business. This can be done through the National Credit Regulator’s website, as all legitimate debt counsellors must be registered.

“Be wary of any business or lawyer claiming to work for the credit bureau, and phone the credit bureau directly to confirm this,” said Burger. “And remember: a legitimate business is unlikely to communicate with clients via WhatsApp; use non-business e-mail, such as Yahoo mail or Gmail; or use e-wallet transfers.”

You have a right to a free credit report once every 12 months. Contact TransUnion on +264 81 3418727, or email SA_Namibia-FreeReport@transunion.com or Namibia-freereport@transunion.co.za to obtain your free credit report.

To assist in curbing the spread of Covid 19, TransUnion Namibia is operating remotely with a walk in office at 269 Independence Ave BPI House 1^st floor, Room 114, Windhoek for credit report enquiries. The operational hours of this office is from Monday to Friday 9am – 12pm. The public is urged to make use of TransUnion’s electronic channels.

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 Lara Burger, CEO at TransUnion Namibia.

“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 Burger.

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.

They are increasingly being supported by economic policy changes from regulators and national banks to further the digitisation agendas. The Namibian banks have put in place a range of measures, including reduced charges on certain types of transfers and contactless point-of-sale transactions, urging the public to switch to utilising their digital platforms.

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 Burger. 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 Burger.

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 estimated 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 Burger.