TransUnion research found that 1.6% of transaction attempts^[1] involving consumers in Rwanda in 2025 were suspected of digital fraud, down from 2.7% the previous year and well below the global average of 3.8%. Despite the year-over-year (YoY) decline in suspected digital fraud from Rwanda 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 Rwandan 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 RWF 869,249. This is lower than the figures reported in Kenya and South Africa among the countries studied.

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.

“Despite recording lower digital fraud rates than global and regional averages, Rwanda is experiencing a structural change in fraud risk,” said Amritha Reddy, senior director of fraud product management at TransUnion Africa. “Criminals are moving upstream, targeting identity and trust at the point of access rather than transactions, and exploiting early moments where verification is still forming.”

Within this context, Rwanda’s investment in Digital Public Infrastructure under Vision 2050 is anchored by the National Identification Agency’s (NIDA) implementation of a new digital identification number. This initiative is expected to strengthen eKYC, support digital service delivery and improve trusted onboarding across the economy.

Money Mule Scams Lead Consumer-Reported Fraud Losses in Rwanda

Rwandan consumers are increasingly facing coordinated, identity-driven and cross-channel attacks like those seen in mature digital economies, with fraud moving deeper into everyday digital interactions.

Amongst Rwandans who reported losing money to digital fraud over the past year, nearly three in ten (29%) said money mule scams were responsible.

“Money mules often are the bridge between consumer fraud and broader financial crime,” said Reddy. “Many are unknowingly recruited through social engineering, enabling criminals to move stolen funds while avoiding detection. As these activities scale, isolated scams evolve into wider systemic risks, underscoring that fraud in Rwanda is no longer just a consumer issue.”

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

Source: TransUnion consumer survey

Digital Fraud Risk is Highest at Account Creation in Rwanda

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, Rwanda recorded its highest suspected digital fraud rate in the consumer lifecycle at account creation (7.7%), followed by account login (1.6%) and during financial transactions (0.5%).

“The report highlights a critical shift: the highest fraud risk in Rwanda now occurs before the first transaction,” said Reddy. “Rather than attacking systems directly, fraudsters increasingly impersonate legitimate users, blending into digital ecosystems designed for speed, inclusion and convenience. Once a compromised identity is onboarded, downstream fraud becomes significantly more complex and costly to prevent. This reflects a broader global pattern where fraud is no longer forceful, it is subtle, adaptive and difficult to see.”

Rwandans Prioritise Increased Safety Over Frictionless Experiences if Protected from Fraud

Findings from the TransUnion survey also show that the top features Rwandan consumers value when choosing whom to transact with online are an easy payment process (73% rated this as very important), confidence that their personal data is secure (70%), and ease of filling out forms and applications (64%).

“Consumers are willing to accept friction when it clearly enhances protection,” Reddy said. “Security in Rwanda is evolving beyond compliance and emerging as a key driver of brand trust and differentiation.”

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

Across Africa, suspected digital fraud risk varies by industry. For transactions involving Rwandan consumers, retail recorded the highest suspected digital fraud rate in 2025, at 7.1%.

As more services converge around mobile identity, real‑time connectivity and platform‑based interactions, fraud increasingly appears wherever users are active. As digital commerce grows, fraud is increasingly concentrated in environments where new trust relationships form quickly, including online marketplaces.

“This concentration of risk underscores the importance of stronger identity assurance across digital marketplaces,” Reddy said. “Protecting consumers also support legitimate merchants and help grow confidence in ecommerce platform safety.”

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

Source: TransUnion global intelligence network

What Consumers and Businesses Can Do

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

Rwanda benefits from a robust regulatory and cybercrime framework, which has helped keep fraud rates comparatively low even as attack intensity increases. Importantly, declining fraud rates do not indicate a diminishing threat. Instead, they reflect better detection, improving controls and shifting criminal tactics.

“Fraud is becoming more automated, more targeted and more psychologically manipulative, a trend accelerated by advances in artificial intelligence and digital scale. This evolution requires continuous fraud detection adaptation rather than static controls,” Reddy said.

“The central challenge ahead is no longer simply preventing fraud but preserving trust in the digital economy. Trust determines whether consumers continue to transact digitally, businesses can grow and convert customers, and confidence in Rwanda’s digital future is sustained. Fraud will always exist online, but trust doesn’t have to suffer. Rwanda’s next stage of digital growth depends on security and convenience online moving forward together,” she concluded.

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 Rwanda, 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, 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 Rwanda from Nov. 24 to Dec. 9, 2025. 

In a context of GDP growth of 7.8% during the first quarter, ongoing economic recovery and the government’s ongoing efforts to strengthen key industries and maintain macroeconomic stability, Rwandan consumers were notably more optimistic about their financial futures in Q2 2025 compared to a year ago.

According to the TransUnion Consumer Pulse Study for Q2 2025, 81% of Rwandans felt financially hopeful, with 38% having seen a growth in income – up five percentage points from those who said the same a year ago – and 37% saying that their finances were better than expected.

“Rwandan consumers are demonstrating remarkable resilience and optimism in the face of economic challenges. The strong sense of financial hope reflects a broader national momentum toward inclusive growth. 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 positive trajectory,” said Thabo Molefe, head of Africa regions, TransUnion.

In the past three months, Rwandan households faced some financial setbacks, with job losses emerging as the most significant challenge. Specifically, 29% of respondents reported job losses. Additionally, 20% experienced wage or salary reductions, 14% had their work hours reduced, and 12% said a household business had closed or lost orders.

On the upside, 23% indicated that they started a new job, 22% said that someone in their household started a new business, and 16% had salary increases. In terms of financial behavior, 28% saved more in an emergency fund and paid down their debt faster while 24% saved more for retirement.

In the next three months, 38% of the surveyed consumers expect to increase discretionary spending. This percentage is higher than that of respondents who expected discretionary spending to remain the same (21%) or decrease (30%). At the same time, respondents are expecting an increase in both medical services (45%) and digital services (42%) costs.

More than half (51%) of Rwandan consumers expected to miss at least one bill or loan payment in the coming quarter. Rwandans are determined to pay their bills and loans, however, with 39% saying that they’ll pay a partial amount that they can afford, 39% saying that they’ll take on gig work, and 39% saying that they’ll use money from their savings.

Rwandans Believe Access to Credit is Important

In Q2 2025, a significant 99% of respondents considered access to credit important, yet only 41% felt they had sufficient access. This indicates a noteworthy gap between credit access and consumer confidence, pointing to a need for more inclusive lending. Looking ahead, 55% planned to apply for new or refinanced credit within the next year. Among these, 46% were planning to apply for a new personal loan, 26% intended to apply for a new student loan, and 23% were planning to apply for a new home loan.

Nearly half (49%) of respondents considered applying for credit or refinancing but ultimately chose not to proceed. The main reasons were high borrowing costs (27%) and concerns about being rejected due to income or employment status (22%). Moreover, 20% found an alternative funding source, 19% said that getting a decision takes too long, and 17% said that applying was too much work.

Rwandans Affected by Fraud Attempts

Following a study which found that nearly seven in 10 Rwandans were targeted with fraud in the last five months of 2024, more than one third (37%) of consumers identified cybersecurity threats as a major obstacle to adopting new digital technologies, while 30% expressed concerns about identity theft. These concerns highlight the need for stronger digital safeguards and greater public awareness to foster trust in online platforms and services.

High-income consumers were particularly affected by fraud attempts during Q2 2025, with 59% reporting attempts. The most common types of scams included money/gift card scams (49%), phishing (fraudulent emails, websites, social posts, QR codes, etc. meant to steal data) at 31% and vishing (fraudulent phone calls meant to trick users into revealing data) at 28%. Among high-income consumers, money or gift card scams (47%) and phishing (31%) were the most frequently encountered scams.

Sharing personal information was a concern for 72% of consumers, due to fears of privacy invasion (63%) and identity theft (59%). Additionally, 73% said they have proper access to their credit information. There is still an opportunity to implement stronger cybersecurity measures, consumer education, and regulatory oversight to build trust in Rwanda’s digital economy.

“As Rwanda’s economy continues to recover and digital adoption accelerates, protecting consumers from fraud must remain a top priority. Empowering individuals with access to their credit information and the tools to monitor it is about more than improving their financial health, it’s about building trust in a digital future,” said Molefe.

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

ENDS

^{Note to editors:}

^{* This online survey of 345 adults was conducted May 5–25, 2025}

Sixty-seven percent of Rwandans 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 10% saying that they had become victims. Among those who said they were targeted, the most common reported schemes were money mule scams where users are solicited to move illegally acquired money on behalf of someone else (30%), social engineering scams where users are persuaded to give personal information or money (29%) and unemployment fraud (27%).

In a separate question from that same survey, more than four in ten (44%) said that they had lost money to email, online, phone call or text messaging fraud in the last year. Nearly three in ten (29%) of those who said they lost money reported it happening from money mule scams. This was followed by 24% from third-party seller scams on legitimate online retail sites and 23% from social engineering scams.

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 Rwandan consumers continue to be targeted by fraudsters through a wide range of channels.

“Rwandans use mobile phones to conduct their everyday business, connect with friends, or send and receive money, so it’s easy to understand why digital fraud would be such a common tactic among fraudsters targeting consumers in 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.”

One-third (33%) of Rwandan 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, Rwanda had the second lowest percentage of respondents among countries surveyed in Africa who said they fell victim to email, online, phone call or text messaging fraud in the second half of 2024. In contrast, South Africa had the highest 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 361 Rwandans 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 Rwanda, retail experienced the highest suspected digital fraud attempt rate in 2024 at 7.9% with an 11.7% decrease in the volume of suspected digital fraud from 2023. The biggest increase in suspected digital fraud attempts was in gaming transactions, rising 12.5% YoY.

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

Source: TransUnion TruValidate™

*Insurance, government, video gaming and logistics 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 RF 2,440,559. For those who said they lost money due to fraud in Rwanda, the median stated amount lost was RF 733,425^[2].

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

Specific country and regional data in the report includes Rwanda, Botswana, Brazil, Canada, Chile, Colombia, the Dominican Republic, Guatemala, Hong Kong, India, Kenya Mexico, Namibia the Philippines, Puerto Rico, 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, 3.7% of all attempted digital transactions where the consumer was located in Rwanda were identified as suspected Digital Fraud in a recent TransUnion® (NYSE:TRU) analysis. Rwanda had the sixth 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 retail, financial services and communities (online dating, forums etc.) were the industries that had the highest suspected Digital Fraud rate for transactions where the consumer was in Rwanda 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 Rwanda.

This is at a time when 61% of Rwandan 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 11% 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 Rwanda 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 Rwanda, 5.4% of digital account opening attempts were suspected of Digital Fraud, with 4.3% 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 Samuel Tayengwa, CEO of TransUnion Rwanda. “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 Rwanda, Botswana, Brazil, Canada, Chile, Colombia, the Dominican Republic, Hong Kong, India, Kenya, Mexico, Namibia, South Africa, the Philippines, Puerto Rico, Spain, the United Kingdom, United States, and Zambia.

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

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

Information and insights company TransUnion has published its first Consumer Pulse Study in Rwanda, which shows that Rwandan consumers are navigating a complex macroeconomic landscape resulting in financial disparities amongst households.

Within this context, Rwandan households saw varied impacts on their incomes in Q2 2024. While 33% of respondents said their incomes had increased in the previous three months, 25% witnessed a decrease in income and 42% noted no change. Employment expansion in late 2023 reduced the unemployment rate to 16.8% and, during Q2 2024, 22% of consumers surveyed started a new business and 21% started a new job leading to increased income. However, job losses (28%) and salary reductions (18%) caused income declines for many respondents. On an encouraging note, 81% of Rwandans are optimistic that their income will increase in the coming year.

Sam Tayengwa, CEO of TransUnion Rwanda, says: “Rwandan 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 encouraging.”

Consumer response to economic strain

Inflation, a lingering concern for nearly one in ten (8.9%) of households in Q4 2023 decreased to just below one in twenty (4.6%) in the first four months of 2024, mainly due to reduced food inflation. This is expected to ease financial pressure on consumers and support household spending in the second half of 2024.

However, strong GDP growth of 8.2% in 2023, driven by robust household spending, is expected to soften to 7% for 2024, with risks of adverse weather impacting food production, in turn leading to higher food prices and adversely affecting impoverished households. High energy costs and persistent poverty present additional challenges.

The ability of consumers to meet their monthly bills is strained with 42% expressing concerns about fulfilling their existing financial obligations, of which 44% are Millennials (27–42 years old). Of the consumers who are unable to pay their bills and loans in full, 37% plan to seek assistance from friends or family; 35% intend to make partial payments; and 33% will dip into savings to cover the shortfall.

Economic and financial pressures led to 35% of respondents reducing spending on discretionary ‘luxuries’ like dining out, travel, and entertainment in the last three months. There is a focus on the future, however, some respondents prioritised debt repayments and some increased contributions to emergency funds during the quarter (both at 28%). A trend towards responsible financial management is evident, with 49% planning to allocate more income toward bills and loans going forward.

Financial inclusion

Despite a high demand for credit and 98% emphasising the essential role that credit plays in achieving financial goals, just 37% feel they have sufficient access to credit and lending products (particularly Millennials at 42%).

During Q2 2024, 51% of consumers planned to seek new credit, with Millennials showing the most interest (60%). However, of the 49% who abandon plans for new credit or refinancing over the quarter (27%) cited high costs and concerns about income and employment stability.

Among those who intended to seek credit, 44% contemplated new personal loans, 38% considered student loans and 17% planned to apply for a new home loan.

With the Central Bank of Rwanda cutting its policy interest in May 2024 – for the first time since 2020 – and, despite the relatively high bank lending rate (15.9% in April), this move will likely stimulate credit demand over the next year.

Monitoring credit reports

When it comes to credit monitoring, 96% of Rwandans recognise the importance of checking their credit reports. Among the respondents, 64% monitor their reports at least monthly, and this is highest among Millennials (69%), which correlates with this age group’s perceived access to credit.

Overall, nearly half (49%) think that including non-traditional information like rental payments, gym memberships and short-term loan histories in credit assessments would boost their credit scores.

Digital fraud and security

Rwanda’s ecommerce penetration remains low, with 65% of consumers conducting less than half their transactions online, primarily due to limited internet access and security concerns. Digital fraud is a growing threat, with half (50%) of respondents being targeted by online, email, phone call or text message fraud schemes but not becoming a victim in the last three months and 11% targeted and claimed they fell victim.

Money and gift card scams were the most prevalent fraudulent scheme of those targeted, affecting 44% of respondents, followed by vishing (28%) and money mule scams (26%). In Q2 2024, 69% of consumers in Rwanda were concerned about sharing personal information, with identity theft (67%) and invasion of privacy (64%) being primary concerns.

“This shows the importance of transparency and accountability in data collection and utilisation by businesses and institutions. At the same time, consumers should check their credit reports regularly. Early detection of fraudulent activities that affect their credit scores enables consumers to take timely corrective action,” says Tayengwa.

Consumers can find out more about TransUnion Menyesha here.

TransUnion found across industries in 2023, 3.3% of all transactions where the consumer was in Rwanda were flagged as being suspected Digital Fraud – a 31% YoY increase.

The TransUnion report revealed that nearly one in seven (13.5%) newly created accounts were 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%).

Similarly, for transactions where the consumer was in Rwanda, the highest percentage of suspected Digital Fraud in the online customer journey occurred at account creation, at 5.8%, varying widely by industry.

“This early-phase new account Digital Fraud may represent a paradigm shift of sorts among fraudsters,” said Sam Tayengwa, chief executive officer at TransUnion Rwanda. “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.”

Retail Saw the Highest Suspected Digital Fraud Rate in 2023 Globally, While Financial Services Experienced the Highest Rate in Rwanda*

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 Tayengwa. “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 Rwanda, Botswana, Brazil, Canada, Chile, Colombia, the Dominican Republic, Hong Kong, India, Kenya, Mexico, Namibia, the Philippines, Puerto Rico, 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 Rwanda 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 Nov. 11 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 Rwanda during the transaction and globally. Unlike last year when the Thursday (24 November 2022) of the Black Friday shopping weekend saw the highest suspected digital fraud rate of 4.9%, this rate was the highest on Saturday 25 November.

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.

“Anecdotally, we hear that payment card issuers tend to use a different model during holiday shopping periods to allow more authorisations to complete quickly,” said Samuel Tayengwa, chief executive officer at TransUnion Rwanda.  “It seems that a similar tactic is being used by retailers concerned that any friction may drive consumers away, reflecting the elevated competition and aggressiveness of retailers to ensure greater shopping volume.”

Criminals exploit the lowered drawbridge

Criminal organisations look forward to this period of lax fraud controls. Knowing that guards are lowered, they commit account takeovers to empty loyalty points programs and make purchases using the hijacked customer’s existing payment wallet, for example. For retailers that allow guest checkouts, fraudsters will transact using stolen payment cards they’ve purchased from the dark web or have previously harvested from other data breach attacks.

While online sales numbers for retailers are now known, retailers will have to wait and hope that fraud losses do not pile up. The challenge is that they won’t know for some time; merchants will have to wait for an uptick in chargebacks, returns, and customer disputes before that becomes clear.

“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 Tayengwa. “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 can access the TransUnion Menyesha app by dialling *707# in Rwanda.

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

Among all industries, the global suspected digital fraud rate stood at 5.3% in H1 2023, up from 4.5% one year ago. Of all digital transactions made by consumers in Rwanda, 3.9% were suspected to be fraudulent attempts in H1 2023.³

For transactions originating from Rwanda, financial services and retail had the highest suspected digital fraud attempt rate among industries analyzed in H1 2023 at 8.7% and 5.7% respectively.³

Digital transactions from Rwanda in financial services grew by 12.2% during the first half of 2023, and the suspected rate of suspected digital fraud attempts for transactions from Rwanda in financial services increased 252% year-over-year (YoY) – the largest increase among industries analyzed. Within telecommunications, the suspected digital fraud attempt rate increased by 251% YoY. Although the number of digital transactions in gaming (online sports, betting, poker, etc.) in Rwanda increased by 185% the rate of suspected digital fraud attempts in this sector declined by 65% YoY.³

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

“It’s not enough to look at fraud rates alone when attempting to measure the impact of digital fraud on any one particular industry or another,” said Samuel Tayengwa, chief executive officer at TransUnion Rwanda. “There are other factors that need to be considered. These include the overall size of the industry in question, whether that industry is growing and if so, how quickly. Only then is it possible to develop a more comprehensive perspective on just how digital fraud is impacting these industries. In addition, this can help identify where fraudsters may be focusing their efforts in future.”

Gaming Saw the Greatest YoY Growth in Global Digital Transactions

while Financial Services had the Highest Suspected Digital Fraud Rate Coming From Rwanda

^{Source: TransUnion TruValidateTM data}

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

“The volume of digital fraud from Rwanda has risen since the COVID-19 pandemic began, leading to larger losses and operational costs,” Tayengwa said. “However, there has been an increased awareness of the importance of ‘Know Your Customer’ requirement and the need to manage consumer information more comprehensively, ahead of the implementation of Rwanda’s Data Privacy Law in October 2023.”

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}

The solution, available to TransUnion’s CreditVision customers, uses alternative data to give lenders deeper insights and a more complete customer picture, improving the risk predictability of consumers and small businesses who have little or no credit risk profiles by up to 25%.

Credit scores are values derived from formal credit data that uses statistical methods to help predict a person’s ability to pay back a loan. A credit score can help influence the initial decision to lend, the size and term of the loan a consumer or small business can afford and can even play a role in determining the interest rate charged by the lender.

Consumers that have no or low credit scores often face obstacles in accessing lifestyle improvements made possible by credit, including unsecured products like clothing accounts or personal loans, or secured products like vehicle finance or home loans. Emerging small enterprises with no credit score may also struggle to access the capital injections they need to grow their business and employ more people.

Although 70% of South Africa’s population has access to a transactional bank account, usage is low, with 27% of people withdrawing all their money as soon as it is paid to them.[1] These, and other factors, all contribute to low levels of financial inclusion and use of credit. No or low credit scores, or ‘thin file’ records, where a consumer or business has little or no credit history, are a barrier the telecommunications (telecoms) alternative data initiative between TransUnion and Chenosis is designed to overcome.

 “One of the major impediments to further financial inclusion and greater credit opportunities is the absence of reliable credit and other information on individuals and enterprises that have not traditionally used banking and insurance services,” said Lee Naik, CEO of TransUnion Africa.

“For example, telecoms data can be used to improve access to credit services by bridging the information gap between traditional credit information and the data generated by consumers and entrepreneurs when they use their mobile phone, or they buy data either pre-paid or on a post-paid contract. This and other information gives us a record of their ability to make regular or semi-regular payments and can help demonstrate the ability to afford monthly credit repayments,” he added.

When a lender requests a consumer’s telecom data, the request is processed via the Chenosis API, which sends a detailed SMS to that consumer, requesting permission to share the relevant data with the inquiring party. Once the consumer has agreed to the request, Chenosis retrieves the consumer’s data, and shares it, within the requirements of protecting personal information.

Telecoms data is already used by mobile operators to assess a user’s risk when considering upgrading a customer from a prepaid account to a post-paid account – with the collaboration between the three industry leaders now making it possible to include this information in a credit score.

Telecoms data can provide insights into a consumer’s current and likely behaviour in various ways. For example, a person’s calling behaviour may provide insights into their comparative ability and willingness to repay debt. Initiating larger numbers of calls rather than receiving them, and making of calls of long duration, are used in some data models as supporting a higher credit score.

Customer and billing records offer direct financial data. For pre-paid subscriber accounts, the size and frequency of top-ups and the choice of plan selections illustrate the user’s financial profile, with some similarities to top-ups of mobile money accounts.

A user who carefully manages his or her prepaid account balance over time to permit smoother usage may be a more responsible borrower. Similarly, where a customer’s service usage patterns follow a monthly cycle, he or she may be more likely to be earning a salary.

“Chenosis is excited to support TransUnion’s drive to provide more access to Financial Services for traditionally underserved sectors in South Africa, Rwanda, and Zambia. This use case exemplifies the power of APIs to facilitate consented data between parties in a secure, authorised, authenticated manner with a clear governance framework to maintain data privacy,” said Saad Syed, CEO of Chenosis. “We believe this is just the beginning of our partnership with TransUnion and hope to jointly build an API ecosystem which will solve problems and create opportunities for consumers and businesses by providing a platform to securely exchange data and services.”

“This strategic partnership with Chenosis, using CreditVision Link, is one way that TransUnion is furthering financial inclusion in sub-Saharan Africa,” Naik added. “We are continuously seeking ways to expand our database to include alternative scoring partners to our bureau data, to more accurately represent more consumers and small enterprises, supporting them in gaining access to the financial services they need to achieve their goals and access new opportunities.”

^{[1] Improving financial inclusion in South Africa - BCG | GIBS}

Rwandan leaders from government, financial institutions, and development partners gathered at a pivotal TransUnion Rwanda event on 27 June 2023 to discuss the vital role of collaboration in accelerating financial inclusion in Rwanda, with a focus on the empowerment of women. Attendees discussed the need for an enabling environment, including supportive policies, regulatory frameworks, tailored financial literacy programmes, and the power of working together.

The event also heard about the significance of embracing innovations in the use of alternative data in expanding access to financial services for underserved populations. “In Rwanda, alternative data from mobile money and other non-financial data sources play a crucial role in understanding consumers better and reaching individuals with limited formal credit history. This innovative approach opens doors to financial services, enabling individuals and SMEs to thrive and contribute to Rwanda's development," said Lee Naik, Regional President and CEO for TransUnion Africa.

Pictured left to right:

• Pipian Hakizabera, Chairman of TransUnion Rwanda Board
• Lee Naik, Regional President and CEO for TransUnion Africa
• Clare Akamanzi, Chief Executive Officer of Rwanda Development Board and Cabinet Member
• Samuel Tayengwa, Country Manager for TransUnion Rwanda

Additionally, 29% of Rwandans had experienced phishing attempts – fraudulent emails, websites of social posts intent on stealing data – while 26% experienced smishing in which fraudulent text messages attempted to trick them into revealing personal data. A little more than one-fifth (22%) of Rwandans experienced vishing attempts – fraudulent phone calls where fraudsters tried to get them to reveal personal information. 

During the same time, the top types of digital fraud which Rwandan consumers were most worried about differed slightly from the attempts reported. Third-party seller scams led Rwandan consumers’ concerns about digital fraud (42%) followed by account takeover (38%), stolen credit card or fraudulent charges (37%), identity theft (36%), money mule scams (35%), and phishing (34%).

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.

Samuel Tayengwa, acting chief executive officer TransUnion Rwanda, said: “The explosion of digital transactions, the accelerated adoption of digital technologies, and increasing appetites for faster access to funds and credit, have led to an increase in fraud losses, particularly in digital channels,” said Tayengwa. “Consumers are expecting organisations to protect their identities and online accounts, and those companies that do not adequately honour those preferences may lose business as a result.

“Rwandan 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.” 

While 7% of Rwandan consumers said that they were targeted by and have become a victim of an email, online, phone call or text messaging fraud scheme between September and December 2022, 56% said they had been targeted but did not fall victim. Of those Rwandans that discovered that they were victims of fraud, 23% contacted the police and the affected credit card provider or retailer, and 19% placed a freeze on their credit.

Tayengwa 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 Rwanda navigates this 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 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.

Samuel Tayengwa, the Rwanda acting country director at information and insight provider TransUnion, says a credit report is one of the most powerful financial tools available, as it reflects and shows the state of your finances.

“When you apply for credit, lenders check your credit report and credit score before approving a loan. The better you understand what these are and how they work, the better you can manage your finances and transact with confidence,” says Tayengwa.

What is a credit report?

A credit report is a history of credit commitments, and how you’ve paid them back. It contains:

• Personal information: name, address, marital status, and employment information.
• Payment information: a list of all regulated financial institutions (banks, SACCOs, MFIs, telecos etc.) and businesses that have given you credit or lent you money; your credit limits, loan amounts, payment history or if a judgement has been issued against you
• Current financial information: your level of debt, and how many times you’ve applied for credit recently

How does it get created?

Every month, lenders send a report on your credit and loan history, and your payment record, to credit reporting companies like TransUnion.

What’s the difference between a credit report and a credit score?

A credit report is the record of your financial history and payment behaviour. This information is used to calculate your credit score, which helps lenders evaluate how likely you are to pay back a loan.

Why is it important to have a good credit score?

When you apply for credit – like a home loan, a car loan, a new credit card, a clothing store account or a new cellphone contract – banks and lenders will access your credit report to see if you’re suitable for credit. Some landlords will check it before they rent a property to you.

If you have a good credit score, you might get 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.

How do I improve my credit score?

“The good news is that it’s quite possible to improve a low credit score through responsible financial behaviour. The biggest influence on your credit score is how you manage your accounts, and whether you pay your accounts on time. Never ignore letters of demand and overdue accounts. If you can’t meet your repayments, call the credit provider and ask for help to make new payment arrangements,” says Tayengwa.

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 check your credit status by dialing *707# and entering your NID to register. Just follow the prompts to check your credit status. You can also request a clearance certificate to show your debts have been settled.

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. TransUnion Rwanda has a platform called Menyesha which is a mobile interactive solution that gives you accurate and up-to-date information about your credit status in real-time. To register for Menyesha, Text REG National ID number Language (EN/KIN/FR) Email address. If you are already registered and you want to access your credit report, SMS CR to 2272 and receive your credit information on your email, 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.}

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 Samuel Tayengwa, acting CEO at TransUnion Rwanda.

“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 Tayengwa.

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 national digitisation agendas. The National Bank of Rwanda has put in place a range of measures, including zero charges on certain types of transfers and contactless point-of-sale transactions, and a three-fold increase from RWF 500,00 to RWF 1,500,00 in the limit for individual transfers using mobile money wallets.

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 Tayengwa. 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 Tayengwa.

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 Tayengwa.

Kinuma is the former CEO of digital payments fintech Mobicash, and brings with him strong experience in digital payments, SMEs, the public sector and technology. He will be responsible for growing TransUnion Rwanda’s range of information solutions, which help businesses make more informed decisions and consumers manage their personal information and access financial products and services.

TransUnion’s Senior Director for Africa, Chad Reimers, said the Rwanda market was ‘a critical part’ of TransUnion Africa’s portfolio growth strategy, and that he was confident that the business would continue to grow and reach its potential under Kinuma’s leadership.

“Emile brings an extensive understanding of the Rwandan marketplace, and a strong ability to help leverage TransUnion’s global data, analytics and technology capabilities to help businesses and consumers transact with confidence,” said Reimers.

Kinuma, who took up his new role on 1 July 2020, has deep knowledge of the Rwandan financial sector, having aggressively grown Mobicash’s presence, as well as partnering with government on several initiatives. He previously gained experience in the telecoms, finance, media and entertainment, and airline industries, both in Rwanda and internationally.

“I’m excited to be part of TransUnion, and I look forward to deepening our relationships with clients, consumers and wider stakeholders. I want to engage the financial and digital lending communities to deliver great experiences and help create more economic opportunities,” said Kinuma.

One of Kinuma’s priorities will be to continue the growth of TransUnion’s Menyesha (Inform Me) solution, which allows consumers access to their credit information via SMS (2272).

“Menyesha plays an important role in enabling consumers to be more informed about their financial standing, and helps encourage the behaviours needed to maintain a healthy credit status. It empowers ordinary Rwandans to achieve their personal objectives, whether it’s purchasing a house or accessing a loan to further their studies,” said Reimers.